We just found out that DH is in Chex.

Here's the gist of the situation:
SunTrust Bank (I have no problem naming them as the problem because I hate them so much) held a cash deposit that my husband made. However, they keep three (yes, three!) different running balances on your account - two that you can see (one via phone/ATM/branch and one via internet), one that you can't and only the bank has access to. When they held this deposit, the one balance that we couldn't see went into the negative. We started getting negative balance fees when our account, by everything we could see, still showed in the positive.

After much arguing with the bank, we never did get it straightened out, opened a new account at another bank and basically blew it off. (Long before I found CB, I might add). This was in late 2005. About eight months ago, DH got a collections letter for this negative account. It reports on his credit as one amount, the collections letter was for a different amount of about $250 more. I DV'd within 30 days and received, essentially, proof that SunTrust broke their own policies and held our deposit, (shows accrued balance, adjusted balance and collected balance - the third balance is the one we had no access to and was the only one that ever went into the negative until the $300+ in NSF fees hit) but no one has ever given me advice on what to do about that CA - which is NCO, not Chex.

Apparently within the past 6 months, DH has been added to Chex over this account. We opened a new checking account when we moved to another state in September, but we attempted to open a second new account and while I was approved for it, he was declined due to Chex.

Now, I'd really rather just let this fall by the wayside (the amount is very piddly, only around $200, I would pay it if it wasn't for the fact SunTrust pissed me off so much with the way it was handled and the fact we've also got a CA on his credit from it that I'm also going to need bargaining room with) and have the 5 years get over with. We've got three open checking accounts right now, all of them in good standing and all with my name as primary and his name as secondary on them. I've already confirmed with my CU (my main bank) that they do not use Chex and will not take any adverse action due to his name being in there, but the other two banks couldn't confirm that unless it shows as paid. If this goes by date of first delinquency, he should be out of there in about 2 1/2 years. However, if it goes by date of first reported, we've got almost the full five years ahead of us.

So I guess that's really my main question. When does the 5 year clock start, and should I go ahead and start the dispute process anyway?

The FCRA specifies that only accurate information can be reported, and it provides a time requirement for reporting negative information. Banks cannot wait and report negative accounts when they want to. If they notified you by mail, they need to have reported you to chexsystems within 30 days to the date of the letter.


When was the entry added to your Chexsystems report? If the account became negative, when was the first month it was negative? What month was it closed and when did the bank report it to Chexsystems? This helps determine when the five year clock should start ticking and when the account should have been reported by the bank. You definitely need to file a dispute. I would first file a dispute with chexsystems and see where that goes and later file one with the reporting bank.

Excellent information, thank you mca. I have not pulled his Chex report, I only know he's on there because the bank we tried to open an account with told us it was showing as NSF with SunTrust for $X (I don't remember now how much but I think it was the wrong figure also).

I will get his report pulled ASAP.