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About tmcgill

  • Birthday October 24

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    Dallas, Texas

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  1. CFPB. But, have they been put to sleep?
  2. It happens, and also occurs when banks turn those charged off accounts to CAs. The CA then adds it to one or more of the big three. I guess the takeaway from this thread is the loopholes available to speciality CRAs, and how it negatively affects consumers.
  3. I thought it was already understood that EWS is a CRA for bank and credit union accounts. Credit card issuers have not been known to run EWS for approvals - or banks for loans. In the course of troubleshooting and helping others here on CB, I called Chase Bank about 3 years ago to ask why they reported charged off checking accounts to Experian, Transunion or Equifax - when they have already reported to Chexsystems. A couple was trying to buy a house, and the bank had reported them for a charged off bank account. I finally got a manager on the phone who said the bank provides the accountholder their processing services and the accountholder has a legal agreement to pay monthly transactional fees. She said accountholders deposit items for negotiation and Chase provides the funds until the issuing bank pays them. She said Chase has the right to report those accounts to the credit bureaus when accountholders owe them and don't pay.
  4. EWS is the fraud watchdog for **banks and credit unions** (It was created by several of the large banks.) That's the gray area. Is opening a checking or savings considered an extension of credit? I've had more than one bank say it is. Interested in hearing opinions and thoughts on this.
  5. Early Warning and Chexsystems are run when you apply for a checking and savings, if that financial institution has an account with them. Some banks and credit unions run it again if you ask for overdraft protection. Depending on the services they purchased, some get alerts from EWS and Chex if negative information is added to your file. If you don't apply for ODP, they only run it when you first apply, unless something negative pops up in your file. **It all depends on the services the financial institution purchased from them. The fact that Early Warning is collecting data and selling that information to determine if you are "credit worthy" for a bank or credit union account, means they function as a CRA. You should be able to freeze that file if you document you are a victim of ID theft. I think a large number of CPB complaints (before it got its legs cut off), prompted them to start providing the consumer reports. A while back, they were just telling you if there was something negative over the phone (and only after you gave them a lot of your personal data). If an individual has a fraudulent account opened or compromised in their name, with overdrafts, bad checks or check kiting, there is a good chance they'll be reported to EWS. Unlike Chexsystems, EWS is usually the kiss of death, because it is considered the fraud watchdog. No second chance banking is available with that bank or credit union. Many banks will open an account, order checks and debit card, then run EWS. If anything negative is on the report, they'll close the account pronto.
  6. Don't you just love shades of gray? When you apply for overdraft protection, many banks will run Chexsystems and/or Early Warning before you are approved. I called Bank of America once to inquire why, and was told overdraft protection is considered a temporary loan, and they need to see if you are "credit worthy" in your banking transactions.
  7. The operative words in the FCRA for exemption are High Risk Fraud Search and Fraud Detect. EWS is skirting the freeze option because their primary function is to detect and report potential or "fraudulent" banking transactions. They think the FCRA gives them a loophole. It wasn't so long ago, they would tell callers they weren't a CRA. They finally caved in and started offering the free annual consumer report. Like a lot of specialty CRAs they operated in the shadows after the owning banks creating them. Because there has been no resistance, or public backlash, they'll keep that playbook. Personally, I think they should be challenged because they gather and store negative account information submitted because of ID theft. Many victims are adversely affected because of the false information stored in their databases.
  8. Several inquiries about their reporting dates late last year. I called EWS to confirm and was told they report negative information for five years. Note: I always call two or three times to verify, as I know phone representatives can be inconsistent. Each time I called, they confirmed five years. With the dates you mentioned, the the entry should be removed.
  9. Thank you for the post. This may be an important lifeline for someone looking for a second chance banking opportunity. This is a vital service offered by Creditboards. I am still amazed by the number of emails I get from individuals** who cannot get a bank account, and are conducting their monthly business using money orders and prepaid cards. **These are individuals from every sector. I helped a mechanical engineer recently who just finalized a divorce. He was getting financial counseling through his CPA, but still could not get a checking account due to Chexsystems and Early Warning. I referred him here to CB, and he was able to locate and get a local checking and savings.
  10. More info: https://www.natlawreview.com/article/texas-amends-debt-collection-law-to-add-new-requirements-debt-buyers
  11. Not new. Each state has a legal statute of limitations, enacted by their legislatures. This is the time period for which you can be legally sued for a debt. A debtor can still sue, but if the debt is outside the SOL, you have an affirmative defense. Also, the SOL is often confused with the debt reporting period as mandated in the Fair Credit Reporting Act. The SOL and 7.5 year negative reporting period are two different things. **Also, sometimes a state has extra requirements debt collectors must follow. The Texas Finance Act, for example, has specific things a CA or JDB must follow regarding consumer disputes. Always good to review and understand any protections in your state that supplement federal laws. Each State SOL: https://www.nolo.com/legal-encyclopedia/statute-of-limitations-state-laws-chart-29941.html As for moving to Texas: I believe some states may have a lower SOL, depending on the type of debt.
  12. Thanks, hegemony. I'll update my list. 😘
  13. If this is the same account, federal law says it can only be reported for 7.5 years after the date of first delinquency. ***However Chexsystems has an internal policy to only report for five years. I doubt it will be reported again, if so let us know. We'll tell you how to dispute it. Also, get your free annual Early Warning report to double check if it was reported there. They only report for five years as well, but double check before applying for new accounts. https://earlywarning.com/consumer-information

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