BofA reported to Chexsystems "suspected fraud"

[CreditOCDinCali]

Did anyone successfully remove "suspected fraud" from their chexsystems report. Four years BofA reported me to chexsystems for suspected fraud. A few days after they closed my account a deposit came in covering the $96 I was overdrawn. No bank or credit union will give me an account not even a 2nd chance account. I told them it's been paid and even got a letter from BofA stating that the $96 was paid in full. I'm thinking about hiring an attorney to help me dispute this, but first I would like to know if anyone has successfully disputed and had it removed.

[undrtkr65]

They did the same thing to me years ago. I had gotten one of those payday loans and the company tried to take money everyday out of my account and bank of America closed my account and reported me as suspected fraud activitiy. I couldn't get it removed had to let it fall off on its own even though I paid it. I don't know of anything you can do other than let it fall off.

[Anonymous]

Has it been exactly 4 years since they reported? Their reporting period is only 5 years...and while the company is not required to delete the report after you pay/settle, it does have to be updated to with the paid in full/settled date. Did they update it to say it's been paid in full? Have you tried to dispute through chexsystems already? If it's going to drop off in just a few months then unless you actually NEED it off right this minute, I personally wouldn't spend the money on an attorney and just wait it out.

[Anonymous]

Many banks will open an account despite an adverse paid ChexSystem entry, and yet you're running into a wall. Are you sure ChexSystems has it updated as "paid"?

Also, are you sure there's nothing else showing on ChexSystems? Even too many inquries (ie. trying to open accts at numerous banks within a short period of time) will make some banks leery of opening an account. My guess is the $96 entry, which is a nominal amount, hasn't been updated as "paid".

BofA also reports to Earning Warning Services, and that can cause problems for banks that also check that - many of the big name banks do.

ChexSystems removes adverse entries after 5 years. However, EWS may be 7 years.

From what you've posted, it seems ChexSystems is the main problem, since you're getting denied immediately. Some banks (of those that check EWS) delay running an EWS screen until after the account is already opened / checks ordered. Ordering a free ChexSystems report is simple and takes about a week to arrive in the mail...

https://www.consumerdebit.com/consumerinfo/us/es/chexsystems/report/index.htm

A free EWS report can also be ordered, but not as easily - must be done via phone. They may try to ask about your employment, check numbers, etc ... you don't need to provide that, nor should you. Any extra info volunteered may be added to your file; shared with others. The minimum required information needed: Your name, street address, social security number, drivers license number (if asked), previous address (if you have moved within past few years).

http://www.earlywarning.com/consumer-information.html

[CreditOCDinCali]

I spoke with a branch manager at a credit union where I wanted to open an account. She said she would open a 2nd chance account for me, but with me being reported to Chexsystems and EWS as "suspected fraud" she cannot. If it were simply "overdraft" or "account abuse" she would, but anything designated as "fraud" they absolutely will not even if it was just for $96. I've tried 35 banks, credit unions already. I'm desperate.

[CreditOCDinCali]

Yes, it does show as "Paid in Full" on my report, but from what a branch manager told me, no bank or credit union will open an account for me with "fraud" stated on my chexsystems report, even though it was a small amount and paid off. Also, BofA has treated me like a criminal. They told me I am to never do business with them ever again. They have me flagged in their system, all $96, which they got back 2 days after closing my account :-(

[Anonymous]

The two main routes I see going is: Waiting it out until the 5 years for ChexSystems is up. -OR- Disputing the "suspected fraud" notation with ChexSystems.

As for EWS, ever have any other issues with your BofA account, such as: Acccount Holder Identity issues (using aliases / name variations)?  Deposits refused?  Overdrafts?  Large cash deposits?  Third-party deposits?  Check kiting (playing the float with checks; more difficult now with Check 21)?  And/or tellers being overly suspicious and asking more questions during transactions than normally expected, etc...

Order your free EWS report, which may reveal the reasoning for the "suspected fraud" notation.

In the meantime, if needing bank account like features, such as direct deposit and bill pay, Walmart Money Card is the answer - purchase on-line or in store, and then verify identity, ssn, etc to get a personalized card. Really. Recommend their $4 Black premium (lol!) card which offers bill pay, money vault (nice security feature), early direct deposit (funds released quicker), and $3 monthly fee waived for direct depositing little as $500 per month into the account (can be withdrawn / spent right away). Works great, and no credit checks.

[gdale6]

You have the right to dispute a Chex entry just like any other CRA. If there was no fraud proven then dispute it with demand for removal of those comments. If that doesnt take care of it I would most likely send an ITS (Intent to Sue) letter to the reporting bank.

[Anonymous]

If you really need a checking account, try TD bank. hopefully they are in your area. They give people on chexsystems full checking accounts.

[Anonymous]

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@Anonymous wrote:
If you really need a checking account, try TD bank. hopefully they are in your area. They give people on chexsystems full checking accounts.

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Might work, but OP's issue is the "suspected fraud" notation in ChexSystems, and, presumably, in EWS too.

To make matters worse, the OP may have racked up numerous ChexSystem inquiries - not necessarily a showstopper when opening a new account, but something that may have to be explained, assuming the bank even acknowledges it, let alone willing to listen.