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Chex Removal BOFA(negative account)


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I was wondering if I can remove my report from chex, since I need to wait 5 years for it to be removed....

just to be clear, nothing has been made by error here, I had a negative checking balance, I didn't pay it and the bank closed my checking account, but I paid the amount 4 month ago, and chex said it will take 5 years to be removed..., obviously right now I am facing some/almost huge limitations with all type of creditors even with a credit score of 795+

is this a Fair Credit Reporting Act?

What's the fastest way to remove them?!

 

Thanks a lot

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On 11/26/2020 at 6:24 PM, Art2049 said:

I was wondering if I can remove my report from chex, since I need to wait 5 years for it to be removed....

just to be clear, nothing has been made by error here, I had a negative checking balance, I didn't pay it and the bank closed my checking account, but I paid the amount 4 month ago, and chex said it will take 5 years to be removed..., obviously right now I am facing some/almost huge limitations with all type of creditors even with a credit score of 795+

is this a Fair Credit Reporting Act?

What's the fastest way to remove them?!

 

Thanks a lot

 

You paid the checking account in full. Kudos for that.

 

Bank of America is under no obligation to report anything other than the actual status of the account, which is "paid, was a chargeoff" or something like that, assuming the account was indeed charged off prior to you paying it off.

 

Chexsystems is under no obligation to remove items before the 5-year mark regardless if paid in full; their responsibility stops at the accurate reporting of information.

 

That said, maybe write Bank of America and explain your situation (4 months ago was dead in the middle of the pandemic) and ask them to do a goodwill removal of the account. They can say yes or FOAD, but either way, that is your best (and possibly only) recourse UNLESS Chexsystems is reporting something wrong.

 

If you feel Chexsystems is reporting an error, grab a paper copy of your Chex report (request by mail) and dispute any inaccuracies via CMRRR.

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10 hours ago, Toast73 said:

 

You paid the checking account in full. Kudos for that.

 

Bank of America is under no obligation to report anything other than the actual status of the account, which is "paid, was a chargeoff" or something like that, assuming the account was indeed charged off prior to you paying it off.

 

Chexsystems is under no obligation to remove items before the 5-year mark regardless if paid in full; their responsibility stops at the accurate reporting of information.

 

That said, maybe write Bank of America and explain your situation (4 months ago was dead in the middle of the pandemic) and ask them to do a goodwill removal of the account. They can say yes or FOAD, but either way, that is your best (and possibly only) recourse UNLESS Chexsystems is reporting something wrong.

 

If you feel Chexsystems is reporting an error, grab a paper copy of your Chex report (request by mail) and dispute any inaccuracies via CMRRR.

They are reporting something that does not exist anymore,  their action is unnecessary and I haven't commit any fraud or money laundry, they are reporting something that does not exist anymore.(If you ask me it's fraudulent)

Again there are no errors, they are reporting that I have paid off a debt that at some point it was an account abuse($950 negative balance and account closure).

I talked to Chex they said, it's not under our discretion to remove this, BOFA has to make that call.

 

is there any judiciary ground that I can open a case against bank of America in small claims?

I am even willing to pay BOFA $1000 in addition to what I already paid, to just remove this record. unfortunately the bank is closed since Thursday.

 

Thanks,

Edited by Art2049
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2 hours ago, Art2049 said:

They are reporting something that does not exist anymore,  their action is unnecessary and I haven't commit any fraud or money laundry, they are reporting something that does not exist anymore.(If you ask me it's fraudulent)

Again there are no errors, they are reporting that I have paid off a debt that at some point it was an account abuse($950 negative balance and account closure).

I talked to Chex they said, it's not under our discretion to remove this, BOFA has to make that call.

 

is there any judiciary ground that I can open a case against bank of America in small claims?

I am even willing to pay BOFA $1000 in addition to what I already paid, to just remove this record. unfortunately the bank is closed since Thursday.

 

Thanks,

You have no grounds to open up a case. Your account was closed due to a $970 deficit and it's a good thing you paid it. Sounds to me BoA is reporting it correctly by indicating it is paid. 

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3 hours ago, Art2049 said:

They are reporting something that does not exist anymore,  their action is unnecessary and I haven't commit any fraud or money laundry, they are reporting something that does not exist anymore.(If you ask me it's fraudulent)

Again there are no errors, they are reporting that I have paid off a debt that at some point it was an account abuse($950 negative balance and account closure).

I talked to Chex they said, it's not under our discretion to remove this, BOFA has to make that call.

 

is there any judiciary ground that I can open a case against bank of America in small claims?

I am even willing to pay BOFA $1000 in addition to what I already paid, to just remove this record. unfortunately the bank is closed since Thursday.

 

Thanks,

Whether you paid it or not, at some point they reported something like this happened, meaning it was a reason you were reported to Chex.

 

You stated yourself they are reporting a debt is paid off. Unclear as to which judiciary rule you would leverage to refute this.

 

Finally, as stated above, BofA is reporting things correctly, and the best you can do is add a consumer statement if allowed.

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On 11/28/2020 at 12:56 PM, Toast73 said:

Whether you paid it or not, at some point they reported something like this happened, meaning it was a reason you were reported to Chex.

 

You stated yourself they are reporting a debt is paid off. Unclear as to which judiciary rule you would leverage to refute this.

 

Finally, as stated above, BofA is reporting things correctly, and the best you can do is add a consumer statement if allowed.

Credit union is rejecting my application, because they are reporting something on my chex report that exist, but is flagged/marked as paid off!

they are not cool with the existence of it at the first place.

ofc I can't wait for 5 years, not even 1 year.

Edited by Art2049
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On 11/28/2020 at 11:29 AM, StarkRaven$ said:

You have no grounds to open up a case. Your account was closed due to a $970 deficit and it's a good thing you paid it. Sounds to me BoA is reporting it correctly by indicating it is paid. 

they are not actively reporting it, they just reported it once, that it's paid, instead of asking chex to remove it.

why do you have to report something that is already settled, when it can have financial impacts on your customer.

my credit score is sitting at 795, they rejected my app based on my chex report

Edited by Art2049
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4 hours ago, Art2049 said:

they are not actively reporting it, they just reported it once, that it's paid, instead of asking chex to remove it.

Still confused as to what Bank of America did wrong, or how it's reported wrong.

 

Bank of America MAY, at its discretion, ask Chexsystems to remove an account as an act of goodwill. It is a rarity for big banks to honor goodwill letters unless its a 30-day late here and there.

 

Apart from that, Bank of America is obligated to report accurately.

 

You paid it off. They reported it as paid off.

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You violated your account agreement with the negative balance. It was reported to Chexsystems - and possibly Earning Warning Services (EWS). Since it was paid, Chex should update it to a paid status. Many banks and credit unions will approve with a paid indicator for negative entries. Each bank or credit union has their own internal policies.

 

During the five year negative reporting period, use non-Chexsystems - non-EWS financial institutions. Let us know if you need help locating a bank or CU in your area. As for legal action, there is no basis.

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  • 1 month later...
On 11/26/2020 at 3:24 PM, Art2049 said:

I was wondering if I can remove my report from chex, since I need to wait 5 years for it to be removed....

just to be clear, nothing has been made by error here, I had a negative checking balance, I didn't pay it and the bank closed my checking account, but I paid the amount 4 month ago, and chex said it will take 5 years to be removed..., obviously right now I am facing some/almost huge limitations with all type of creditors even with a credit score of 795+

is this a Fair Credit Reporting Act?

What's the fastest way to remove them?!

 

Thanks a lot

Couple of things:

  • Most banks and CU will override Chexsystem entry if it shows paid. Just explain to the CU what happened. If you are replying to a CU for loans, open up a savings instead of a checking. 
  • You can also dispute it with the vague reason as "incorrect information" and chances are BofA will not respond. It will be removed for non response after 30 days.
     
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  • 4 weeks later...

ChexSystems is only one of the third party reporting entities that banks, mortgage lenders, insurance companies use to make decisions on extending credit or opening banking products to individuals. These third party reporters are not regulated by the FCRA and therefore your dispute is futile unless they are reporting false information. To work around these paid assassins of our credit, you should request a freeze of your ChexSystems report. After your freeze has been initiated remember to keep your confirmation number, it's needed to release the freeze if you choose to do so in the future. At that point the lending institutions or insurance agencies can no longer use that information to influence their decision. They must use the 3 bureaus designated under the FCRA to base credit worthiness. 

Edited by thecreditplug
grammatical or spelling error
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On 2/20/2021 at 5:45 AM, thecreditplug said:

These third party reporters are not regulated by the FCRA

Wrong.

 

Quote

Chex Systems, Inc. (ChexSystems) is a nationwide specialty consumer reporting agency under the federal Fair Credit Reporting Act (FCRA).

 

On 2/20/2021 at 5:45 AM, thecreditplug said:

At that point the lending institutions or insurance agencies can no longer use that information to influence their decision. They must use the 3 bureaus designated under the FCRA to base credit worthiness.

Wrong. If your Chex is frozen, you can be denied due to a frozen report. That also goes for any of the Big Three if a creditor uses one of the CRAs for its decisions. Though creditors can and do pull data from any or all of the Big Three, they are under no obligation to do so.

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On 11/30/2020 at 1:15 PM, Toast73 said:

Still confused as to what Bank of America did wrong, or how it's reported wrong.

 

Bank of America MAY, at its discretion, ask Chexsystems to remove an account as an act of goodwill. It is a rarity for big banks to honor goodwill letters unless its a 30-day late here and there.

 

Apart from that, Bank of America is obligated to report accurately.

 

You paid it off. They reported it as paid off.

A freeze is no guarantee for approval, although it has worked for some.The best strategy is to call the bank or credit union, and ask them which CRA they use for new checking and savings. Then you know whether to apply, or which report to try and clean.

 

Yes, Specialty Consumer Reporting Agencies (as defined by federal law), and used by financial institutions, must follow the FCRA.

 

 

Edited by tmcgill
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