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ChexSystems Security Freeze Bull****


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I applied for membership to credit union last week and was told by them that they were unable to pull my ChexSystems report due to a Security Freeze. Well, I know I didn't have a Security Freeze on my report, but I called Chex anyway and they confirmed I did not. I confirmed my SSN and other info with the credit union in case there was a typo, but they still say there is a freeze on the report. They claimed that they also called Chex and were told that there IS a Security Freeze.

 

So I just received my paper Chex report in the mail today and, lo-and-behold, it says there IS a Security Freeze. I call Chex again and AGAIN they swear up & down that I don't have a Security Freeze.

 

What would you guys suggest I do in this case? CFPB complaint? Sue them to scare them into action?

 

I'm looking to mortgage shop soon and don't want ChexSystems screwing things up for me!

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Stay Off the Phone.

 

If you did not request a security freeze on your file, send them a certified letter demanding removal! State in the letter you will file a complaint with the CFPB if they don't remove it immediately.

 

Mail

Chex Systems, Inc.

Attn: Security Freeze Department

7805 Hudson Road, Suite 100

Woodbury, MN 55125

 

What state are you in?

Edited by tmcgill
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Stay Off the Phone.

 

If you did not request a security freeze on your file, send them a certified letter demanding removal! State in the letter you will file a complaint with the CFPB if they don't remove it immediately.

 

Mail

 

Chex Systems, Inc.

Attn: Security Freeze Department

7805 Hudson Road, Suite 100

Woodbury, MN 55125

What state are you in?

I'm in PA.

 

I faxed Chex my paper report (at their request) so they can figure out the discrepancy. Seems completely pointless considering that they're the ones who sent me the paper report to begin with.

 

Should I bother sending them the letter, or should I just file the complaint. I don't want to allow them to waste another week of my time.

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Well, that didn't take long! Funny how ChexSystems can figure out the problem within hours once a complaint is filed!

 

Apparently the security freeze is on my LexisNexis report. The problem is that my ChexSystems report only said "Security Feeze: Active" and made no specification as to who or where.

 

Called up NexisLexis and the freeze will be removed within 72 hours.

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Well, that didn't take long! Funny how ChexSystems can figure out the problem within hours once a complaint is filed!

 

Apparently the security freeze is on my LexisNexis report. The problem is that my ChexSystems report only said "Security Feeze: Active" and made no specification as to who or where.

 

Called up NexisLexis and the freeze will be removed within 72 hours.

 

 

That seems unreasonable.

Your ChexSystems report should not be dependent upon your LexixNexis (LN) report being available.

 

I have LN frozen. I just did it a few weeks ago.

 

I have received my ChexSystems report a few months ago and I didn't see any section in there that would even make reference to LexisNexis. I might order ChexSystems again to see if it has changed now that I have LN frozen.

 

If the same thing happened to me, I would dispute with ChexSystems any section that had "Security Feeze: Active" just because it is irrelevant to the ChexSystems data if I have another CRA frozen.

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Apparently the security freeze is on my LexisNexis report. The problem is that my ChexSystems report only said "Security Feeze: Active" and made no specification as to who or where.

Is ChexSystems saying that it is their policy to not provide info if you have a freeze on Lexis Nexis? Or is your case a snafu of some sort? I thought a ChexSystems report only contained data they received from banks and credit unions. Do they also pull info from Lexis Nexis and furnish that data in the ChexSystem report? So in that way, a frozen LexisNexis will halt the report generation when that LexisNexis data is unable to be pulled? Curious.

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Like many Specialty CRAs, Chexsystems verifies your identity using Lexis or one of the big four data aggregators. It depends on the level of services the bank or credit union purchases. Under the US Patriot Act, financial institutions must verify who you are to open an account. Not all run Lexis. Some soft pull one of the big 3 CRAs, who offer ID verification services as well.

Edited by tmcgill
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If you have LN frozen and not ChexSystems, and the bank is checking your ChexSystems file prior to opening a bank account, that should just mean that your ChexSystems file is a little bit light on data.

 

If ChexSystems has some big red flag on your ChexSystems file (LexisNexis Security Freeze Active) then I would certainly have an objection to that. If ChexSystems cannot get some data, they should leave it blank. Not insert a big red flag on the ChexSystems file.

 

I am definitely ordering a new copy of my ChexSystems file now that my LN file is frozen to verify if this shows up.

And I will be making it an issue with ChexSystems if they are flagging my LN file being frozen as a negative in any way.

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Keep us updated.

Chexsystems' standard practice is to provide a report depending on the services the bank or credit union has purchased.

Not all report requests include the ID authentication through Lexis.

Edited by tmcgill
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I'll be contacting the credit union after the freeze is removed and ask them specifically what they were able to see, if anything, from my Chex report. From what they had told me the other day, it seems that Chex didn't give them anything, which is ridiculous.

 

I'll update when I know more.

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  • 3 weeks later...

***UPDATE***

 

The credit union told me that they weren't able to get any information other than that there is a freeze of some sort. They weren't told which company had the freeze, which is why they assumed the freeze was with Chex themselves.

 

I just received an updated Chex paper report in they mail today. Under "Inquiries Initiated by Consumer Action", it's showing 4 inquiries from the credit union. Under "Inquiries Not Initiated by Consumer Action", it's showing 3 inquiries from the credit union. Looks like they were trying to pull every couple of days since I kept telling them that there was no freeze on Chex.

 

Should I be trying to get these removed, or do Chex inquiries not have any real weight? I may be applying for a mortgage within 2 years, in case that has any bearing.

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Should I be trying to get these removed, or do Chex inquiries not have any real weight? I may be applying for a mortgage within 2 years, in case that has any bearing.

I've been given "too many ChexSystems inquiries" as a denial reason for not being able to join credit unions That reason is also sometimes given for denying checking accounts. In your situation, I'd probably ask the credit union if they could remove some of them due to the circumstances. If they won't, maybe dispute some of them as duplicates.

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  • 1 year later...

Just had the same exact problem. I have 6 bank accounts with no issues ever. Tried to open woodforest business and got this same thing. Chex frozen which it is not and never had been. LN is frozen and I won't unfreeze. Woodforest was unable to get any info from chex. I got my report in the mail and it says consumer reported security freeze. Called and again they say it is not. I am sure this is the same issue so I filed a complaint with the CFPB complaining since LN is frozen, chex will not provide woodforest with a report and there are 4 yes 4 inquiries on there from woodforest who kept trying to pull. I  

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Chex is all over the place these days. I was just denied for too many inquiries and when I got my Chex report there were 8 inquiries from my recent auto loan shopping on there. Nothing negative, just the auto loan inquiries that now prevent me from opening a checking account. 

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You have the option not to have Lexis data included on your Chex report by simply writing them and demanding it be removed, as most everyone's Chex report contains Lex data as well (even Certegy).

 

There are certain Lexis reports which also show Chex information and they both have reciprocal data sharing which ends up as part of your Chex qualifile score.

 

Unfortunately, the Lexis information reported to Chex normally includes erroneous information and evidence of wealth (or lack thereof), evidence of debts and other factors that normally would not factor into your Chex report absent Lexis adding that information to help Chex determine a score. This helps Chex compete with EWS / Deluxe Detect and other platforms.

 

I also had a LN freeze and unlocked Chex report and had a credit union tell me the same thing as OP. Most of their software includes the combined LN/Chex report. But I simply told Chex to remove my LN information from my report as it was not even remotely correct anyway and they did. Problem solved.

 

The underlying issue for consumers is that it takes days to solve these problems and having to figure out software platforms and become researchers.. all so we can get a simple bank account while also trying to protect our own privacy of how our information is shared. Another great reason for forums such as these. 

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Having a LexisNexis freeze will negatively impact your ChexSystems file. I had two credit unions tell me my ChexSystems file is frozen when it was NOT frozen. But the LN section was frozen. 

 

Having that LN section of ChexSystems frozen messes up the bank approval systems. It misinterprets the entire file as frozen and caused two credit unions to be unable to verify me and they denied me.

 

I then removed the LexisNexis freeze and reapplied. 
I was approved right away.

 

Just my anecdotal experience.

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The last post in this topic was posted 908 days ago. 

 

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