Dispute It or Pay it?

[ms65442]

I got a letter from Global Recovery Services with addresses in India and Minnesota (?) claiming a $400ish balance due from an account with our small town bank.

 

We switched from our small town bank to BofA in late 2007 or early 2008. It's possible that items that were auto-deducted from our account after the account was closed and zero-balanced which could have cause an overdraw. I'm not sure if this occurred, this is the first letter I've received as to a balance due - no contact from the bank.

 

The CA indicated in their letter that the debt has been reported to ChexSystems and that I have 30 days to dispute the validity of the debt with them, etc.

 

Am not sure how to proceed, I've read through the forum here and see lots of info on how to dispute with Chex.

 

Should I:

 

(1) Go to my small town bank, have them check their files and see if I can pay it if it is in fact mine?

(2) Send a dispute to the CA?

(3) Send a dispute to Chex?

 

The goal of course is to have the item removed from Chex. I have several bank accounts and don't need a new one any time soon, but I'd hate to see this cause problems in the future.

 

Thanks in advance for your help.

[mca]

I would definietly contact the bank to see if it is your and if you can pay it. If they agree, make sure you get something in writing that states that they will remove you from chexsystems.

 

Yes it is our right to dispute with both chexsystems and the reporting bank.

[ms65442]

I called the bank, talked to a nice rep who indicated they'd glady remove my info from Chex and I could come down whenever to pay.

 

I went down there with cash in hand, the nice lady turned me over to the branch manager and that lady was a TOTAL, um, witch, LOL. But at that point I'd already seen the statements, agreed it was mine, agreed to pay, etc. so I couldn't really back out. I live in a really small town and see these people at the grocery store and whatnot, so there's a certain awkwardness to agreeing a debt is yours and then refusing to pay, then sharing hot dogs at the kids baseball game! The mean lady gave me some BS about Chex and wouldn't discuss further.

 

So they're now paid, with nothing in writing about removing from Chex. Gah!

 

I sent off my DV to the CA who says they're reporting to Chex, we'll see what comes back.

[webworm98]

Myself, I would disputed it. Banks are not suppose to charge account after then been closed period.

[mca]

It would seem that way yes but most banks will tell you that it can be forced back open by an ACH/ It is a very common problem. My husband was on chexsystems for the same reason. He closed an account because he moved and later a magazine place charged the closed account so it forced it back open so to speak. Instead of decining the transaction, they paid it and charged him an overdraft fee. Later they closed it and reported him to chexsystems. He found out 3 years later

[webworm98]

It would seem that way yes but most banks will tell you that it can be forced back open by an ACH/ It is a very common problem. My husband was on chexsystems for the same reason. He closed an account because he moved and later a magazine place charged the closed account so it forced it back open so to speak. Instead of declining the transaction, they paid it and charged him an overdraft fee. Later they closed it and reported him to chexsystems. He found out 3 years later

 

Isnt that illegal? I really dont see how it could be legal. It is not in the terms when you first opened the account, at least on my forms.

 

I would never agree to having my account reopened. Once it is closed, it is closed period.

 

 

Before closing your account, change your address, put an ach block if the bank allows that. Then do one of the following.

 

Put a fraud alert before you close the account. (My bank told me this, this way they can reject any charges). I did that with certegy check fraud.

 

Or

 

Write a letter to the banks customers service department requesting that this account be hard closed and that you will not be responsible for any charges that may come in. CRR

Edited June 10, 2009 by webworm98

[mca]

It should be illegal because I can't tell you how many times I have been told that this happens and the customers always end up reported to chexsystems. It even happened to my husband. When we first got married about 11 yrs ago, he moved to where I lived and tried to open a new account and that is when he was told about it. He had no idea either. They said an ACH had came through for some magazine place that he had once ordered from. Instead of rejecting it, they paid it and overdrafted his account as if it were still opened. They charged him an overdraft fee and then reported him to chexsystems when he didn't pay it after 30 days.

 

Well since he closed the account and moved, they did not have any current information on him and were unable to reach him. it is rediculous.

 

I believe you are 100% correct but you MUST do it when the account is closed

 

 

Before closing your account, change your address, put an ach block if the bank allows that. Then do one of the following.

 

Put a fraud alert before you close the account. (My bank told me this, this way they can reject any charges). I did that with certegy check fraud.

 

Or

 

Write a letter to the banks customers service department requesting that this account be hard closed and that you will not be responsible for any charges that may come in. CRR

Edited June 13, 2009 by mca

[ms65442]

Update on this - CA signed for the DV on June 8. No response from them yet - it's been 30 days. What should I do now?

[mca]

Do you know exactly what is reported on your chexsystems report? That should be your first step. Get a free copy of you report now that it has been paid

www.chexhelp.com

 

I doubt that the CA is reporting it to chexsystems. The bank is the one that has reported you. They are the only ones that can remove you. You need to see if the report is accurate before you decide your next move.

 

www.chexsystemsdisputes.com

 

you can also email me directly if needed at mca1895@wikianswers.com

Edited July 10, 2009 by mca