The process for challenging Chexsystems is as follows:
1. Examine the listing to determine if it is 100% accurate.
2. Send an initial dispute letter to Chexsystems. (Always Get proof of delivery via certified mail - return receipt)
3. If Chexsystems verifies it as accurate, then request procedures (how did they verify?)
4. If there are FCRA violations. send an ITS to Chexsystems and demand removal.
**If the bank responds to the PR, check the information they send. Can you use it to verify the information they sent to Chexsystems?
If the information is correct, and they responded within 15 days, challenge the furnisher of the entry (bank or credit union).
5. Send the 623 letter to the bank or credit union requesting a re-investigation.
**Note: They already "investigated" when supposedly Chexsystems contacted them to verify accuracy.
The 623 letter is asking the bank to check their records again and officially confirm that what they verified with Chexsystems is accurate.
6. If the bank or credit union does not respond to the 623, send an ITS to an executive of the bank or credit union.
7. If there is still no correction, you have to weigh other legal options - such as consulting with a licensed attorney, and/or filing a complaint
with the Office of the Comptroller (for national banks) or the state regulator (for state chartered banks).
NOTE: In the example you listed above, writing a check and then closing the account would violate state law and be considered theft of services. US Bank would report you because you violated the checking account agreement.
In my dispute with Chexsystems, i have completed upto step 5 and have found the following
January 18, 2014: First ever dispute made by me.
January 21, 2014. ChexSystems send information over to Furnisher of info; verifies as accurate.
June 10th, 2014; Send a Fax to ChexSystems for Re-Investigate The re-investigate purpose/letter stated
As the attached letter shows an agreement to delete the charge-off for the abovesaid account was reached between me & the Credit Union Bank.
There is no longer a non-sufficient fund activity on this account. With the proof I am attaching to this letter, I am sure you will agree it needs removed ASAP
June 15th, 2014; letter from Chexsystem; Plz be informed that your file has been forwarded to appropriate personnel for handling. If investigation is necessary, we will contact the source of informationto request that they verify the accuracy of information be submitted to us.Under normal circumstances, the investigation will be completed within approx thirty days (21 days for Maine) However, if additional info and/or docs relevant to dispute is provided by you during course of investigation, the time frame may be extended by upto 15 days to allow source sufficient time to review. ChexSystems will notify you of results of investigation once it is completed.
June 30th 2014; Letter from Credit Union Bank; Certified Mail on June 30th, 2014.
I am in receipt of letter dated June 20 2014, regarding reporting of your account at credit Union to chexSystems and requesting supporting docs showing thatthis is a valid reporting. In Credit Unions response letter dated May 17, 2013 to a complaint filed with "NCUA" states " Your account has been charged off and reported to TransWorld to recover funds". also stated in the same letter, "Theb debt was not forgiven when you were allowed access to your Safe Deposit Box (SDB) but after all contracts were reviewed and no restrictions were found to deny access to a SDB due to a negative or charged off or negative account
On April 00, 2013, Ms. CSR informed you that you were able to access your SDB but never stated to you that the debt was forgiven. (yes they said that verbally)
Bank CU reports all charged off accounts to ChexSystems. Enclosed is docs that Bank CU sent to chexSystems on Jan 21, 2014 confirming that the reporting of the unpaid balance of $425.02 was correct and still valid.
June 26th, 2014; Letter identifying to CU Bank, from ChexSystem that a dispute is being made against my account.
Reason for Re-Investigation: Consumer disputes the above account and states that this account is closed with a zerio balance. He is requesting to delete this account. Enclosed plz find supporting document provided by the consumer in reference to consumer's dispute. Please verify the following
Was account adjusted for bookkeeping purposes only? Yes......No marked No
Was Consumer responsible for mishandling? Yes.....No marked No
Was the account closed with Zero Balance? Yes.......No.............. marked No
Plz indicate the correct closure status from the following options: >>>Unpaid marked Other Options : Paid in Full, Settled in Full, Payment Plan, Sold
Plz provide the date that the account entered this status : 12/06/2012
Results of investigation for REF ID # xxxxxxxxx
Mrs. Butterworth; Overdraft Privilige Administration (811) xxx-xxxx - Unpaid Negative Balance
Sincerely
Mr. Clean
Consumer Relations Rep
Chex Systems Inc
(see Enclosed).
enclosures: Bank Statement ending 12/31/2012;
Primary Savings Acct Acct#1 10/1/2012-12/31/2012 Previous Balance
Dec 31 New Balance 5.00
Free Checking Acct Acct#2 11/01-2012 thru 12/31/2012 Prev Bal $405.02-
Dec05 Neg Acct Coll Exp 25.00- $430.02-
Dec05 Neg Acct Coll Exp 25.00 $405.02-
Dec 05 OD Privilige fee 28.00 $377.02-
Dec05 ATM Transaction Fee Unpaid Negative Balance 1.50 $375.52-
Dec05 Deposit Unpaid Negative Balance 375.52 0.00
Dec06 Withdrawal 0.00 0.00
Dec31 New Balance 0.00
Statement Summary
ACCT New Bal Div Yields TaxName Loan New Bal
1 5.00 0.13 SSD
2 0.00 0.00 SSD
Total Dividends YTD 0.13
Acct New Bal Dividends Tax Name Loan New Bal Fincance Charge YTD
1 Closed 0.00 Mrs. SSD
2. Closed 0.00 Mrs SSD
.
