How to Dispute Information in ChexSystems
by rebuildcreditscores.com
updated: September 2008
by rebuildcreditscores.com
updated: September 2008
Contact Chexsystems
ChexSystems
7805 Hudson Road
Woodbury, MN 55125-1403
800.428.9623 tel
602-659-2197 fax
www.consumerdebit.com
ChexSystems
7805 Hudson Road
Woodbury, MN 55125-1403
800.428.9623 tel
602-659-2197 fax
www.consumerdebit.com
The Dispute Process
Chexsystems has thirty (30) days from the date your dispute is received to investigate the
dispute. If you obtained your Chexsystems report by requesting it from the FACTA Free Annual
Report Annual the law extends the dispute response period to forty-five (45) days.
Once your dispute request is received Chexsystems must confirm they contacted someone at
your financial institution to verify the information in dispute.
Dispute by U.S. Mail
When disputing information in your Chexsystems it is better to write a letter dispute and send it
via certified, return receipt U.S. mail. Disputing online makes it more difficult to create a paper
trail in case you need it at some later date.
Dispute by Telephone
If you call to dispute an item in Chexsystems or even if you call to ask a question, Chexsystems
will try to ascertain as much information as possible about you, including but not limited to
employer and where you have or had bank accounts for the past 5 years. NEVER give
Chexsystems anymore information than is required for them to access your files. Remember,
they are a consumer reporting agency and whatever information they collect only helps them, not
you.
Under the Fair Credit Reporting Act, the only information they need to confirm your identity is
your name, current address (not past addresses), date of birth and social security number and
the bank name and account number you are disputing. Do not give them a history of your
accounts for the past 5 years.
Verified Disputes
Verified information in your Chexsystems report will remain in your file for up to 5 years. However,
Chexsystems must explain how they verified the dispute. The FRCA gives you the right to know
how the dispute was confirmed. Send another certified letter requesting validation of the disputed
item.
The validation should include the name, address and telephone number of the business or
individual who verified the dispute as accurate in addition to your signature on any original
documentation from the bank. Keep a good timeline and all return receipt cards from the post
office. If Chexsystems cannot verify how they confirmed your dispute they must delete the item.
Unverified Disputes
If Chexsystems does not respond to your dispute within 30 days from their receipt of your dispute
letter they must delete the item. You can confirm when they received your dispute letter by the
return receipt card you get from the post office. No response means they could not confirm the
item and it must then be removed. Send Chexsystems another certified letter demanding they
remove the item because they have not responded in the time allotted by FRCA Rules.
Dispute with ChexSystems First
You should always dispute with Chexsystems before you take action with the bank. It becomes
very difficult to dispute inaccurate items with Chexsystems if you dispute with the bank first. Your
goal is create a paper trail so as to force Chexsystems to adhere to the 30 day timeframe to
investigate the disputed item according the FRCA. You want to note any type of inaccuracy you
can hold Chexsystems accountable to. FRCA Rules state only “accurate” information can be
reported by credit reporting agencies.
Types of Inaccuracies to Dispute
Since FRCA Rules state you must “accurately” report all negative items, review your
Chexsystems report for any inaccurate information you can use to get the item deleted.
Any deviation from accurate reporting is a violation of the FRCA and the item must be removed.
This also includes clerical errors. Look carefully at your report to find any errors to dispute.
Dispute Directly with the Bank
If you are unsuccessful in getting an item removed after disputing with the Chexsystems you can
attempt disputing directly with the bank. They are also held to the FCRA Rules when it comes to
reporting negative information. And, if you are willing to settle, you should negotiate a pay for
deletion. As always, get the agreement in writing before you send any settlement funds.
Another, more simpler way to dispute with your bank, is to ask. Make a plea to them to remove
you from Chexsystems. Many consumers have been successful by just asking, it is advisable to
pay or offer to pay the amount in question when requesting removal.
Take Legal Action
Hopefully you will not have to resort to legal action. However, if all efforts to successfully dispute
an item have failed this may be the only course of action. Make sure you have created a proper
paper trail, with copies of all your letters along with the certified return receipt. Your legal action
should include proof that you properly notified Chexsystems of the error and they did not correct
the error.
You should be able to show how their failure to correct the error has harmed you in that you are
unable to open a checking account and subject to using expensive alternative means to cash
your payroll, pay your bills, etc. Once a small claims lawsuit is filed you will more than likely get
the outcome you are looking for without even going to court. Lawsuits are costly and
Chexsystems doesn’t make any money by hiring an attorney and appearing in court. They will
probably try to settle and remove the item from your ChexSystems report. Familiarize yourself
with FCRA Rules. You can sue for each violation of the laws for $1,000.
Chexsystems has thirty (30) days from the date your dispute is received to investigate the
dispute. If you obtained your Chexsystems report by requesting it from the FACTA Free Annual
Report Annual the law extends the dispute response period to forty-five (45) days.
Once your dispute request is received Chexsystems must confirm they contacted someone at
your financial institution to verify the information in dispute.
Dispute by U.S. Mail
When disputing information in your Chexsystems it is better to write a letter dispute and send it
via certified, return receipt U.S. mail. Disputing online makes it more difficult to create a paper
trail in case you need it at some later date.
Dispute by Telephone
If you call to dispute an item in Chexsystems or even if you call to ask a question, Chexsystems
will try to ascertain as much information as possible about you, including but not limited to
employer and where you have or had bank accounts for the past 5 years. NEVER give
Chexsystems anymore information than is required for them to access your files. Remember,
they are a consumer reporting agency and whatever information they collect only helps them, not
you.
Under the Fair Credit Reporting Act, the only information they need to confirm your identity is
your name, current address (not past addresses), date of birth and social security number and
the bank name and account number you are disputing. Do not give them a history of your
accounts for the past 5 years.
Verified Disputes
Verified information in your Chexsystems report will remain in your file for up to 5 years. However,
Chexsystems must explain how they verified the dispute. The FRCA gives you the right to know
how the dispute was confirmed. Send another certified letter requesting validation of the disputed
item.
The validation should include the name, address and telephone number of the business or
individual who verified the dispute as accurate in addition to your signature on any original
documentation from the bank. Keep a good timeline and all return receipt cards from the post
office. If Chexsystems cannot verify how they confirmed your dispute they must delete the item.
Unverified Disputes
If Chexsystems does not respond to your dispute within 30 days from their receipt of your dispute
letter they must delete the item. You can confirm when they received your dispute letter by the
return receipt card you get from the post office. No response means they could not confirm the
item and it must then be removed. Send Chexsystems another certified letter demanding they
remove the item because they have not responded in the time allotted by FRCA Rules.
Dispute with ChexSystems First
You should always dispute with Chexsystems before you take action with the bank. It becomes
very difficult to dispute inaccurate items with Chexsystems if you dispute with the bank first. Your
goal is create a paper trail so as to force Chexsystems to adhere to the 30 day timeframe to
investigate the disputed item according the FRCA. You want to note any type of inaccuracy you
can hold Chexsystems accountable to. FRCA Rules state only “accurate” information can be
reported by credit reporting agencies.
Types of Inaccuracies to Dispute
Since FRCA Rules state you must “accurately” report all negative items, review your
Chexsystems report for any inaccurate information you can use to get the item deleted.
- Date the bank reported you to Chexsystems.
- Is the item being accurately reported to Chexsystem. Does your report list NSF activity,
account abuse, fraud, overdrafts or negative balance.
- Date the bank first notified you the account became negative. When did the bank close the
account and report it to Chexsystems. This helps to determine when the statute of
limitations begins. Items can remain in Chexsystems up to five years. The bank has 30
days from the date of notification to you, to report your negative account to Chexsystems.
- Are you the primary account holder, if not, have you signed a signature card for this
account. Request the original copies of your signature card. If Chexsystems cannot
provide you with the proof they must delete the item.
- Is Chexsystems reporting your accurate personal information such as name, address,
social security number.
Any deviation from accurate reporting is a violation of the FRCA and the item must be removed.
This also includes clerical errors. Look carefully at your report to find any errors to dispute.
Dispute Directly with the Bank
If you are unsuccessful in getting an item removed after disputing with the Chexsystems you can
attempt disputing directly with the bank. They are also held to the FCRA Rules when it comes to
reporting negative information. And, if you are willing to settle, you should negotiate a pay for
deletion. As always, get the agreement in writing before you send any settlement funds.
Another, more simpler way to dispute with your bank, is to ask. Make a plea to them to remove
you from Chexsystems. Many consumers have been successful by just asking, it is advisable to
pay or offer to pay the amount in question when requesting removal.
Take Legal Action
Hopefully you will not have to resort to legal action. However, if all efforts to successfully dispute
an item have failed this may be the only course of action. Make sure you have created a proper
paper trail, with copies of all your letters along with the certified return receipt. Your legal action
should include proof that you properly notified Chexsystems of the error and they did not correct
the error.
You should be able to show how their failure to correct the error has harmed you in that you are
unable to open a checking account and subject to using expensive alternative means to cash
your payroll, pay your bills, etc. Once a small claims lawsuit is filed you will more than likely get
the outcome you are looking for without even going to court. Lawsuits are costly and
Chexsystems doesn’t make any money by hiring an attorney and appearing in court. They will
probably try to settle and remove the item from your ChexSystems report. Familiarize yourself
with FCRA Rules. You can sue for each violation of the laws for $1,000.
| Copyright RebuildCreditScores 2008. All Rights Reserved |
Open a New Checking Account
Some banks do not use Chexsystems and some
banks who do use Chexsystems practice second
chance banking.
Chexsystems
Learn what information is contained in your
ChexSystems reports.
What is Telecheck
Learn about Telecheck, how it differs from
Chexsystems and what you can do it if you have been
reported to Telecheck.
Collection Agencies
Information on Effectively Dealing with Collection
Agencies.
Some banks do not use Chexsystems and some
banks who do use Chexsystems practice second
chance banking.
Chexsystems
Learn what information is contained in your
ChexSystems reports.
What is Telecheck
Learn about Telecheck, how it differs from
Chexsystems and what you can do it if you have been
reported to Telecheck.
Collection Agencies
Information on Effectively Dealing with Collection
Agencies.
More Resources
You can dispute any information in your
Chexsystems file as Chexsystems is a
consumer reporting agency and subject to
the Fair Credit Reporting Act.
Chexsystems must investigate any dispute
you submit just like the major credit
bureaus are required to do.
Chexsystems has (30) days to investigate
a disputed item or items and if that item is
not verified by the reporting bank, it must
be deleted from your report. The law
requires banks to report information that
is 100% accurate.
Chexsystems file as Chexsystems is a
consumer reporting agency and subject to
the Fair Credit Reporting Act.
Chexsystems must investigate any dispute
you submit just like the major credit
bureaus are required to do.
Chexsystems has (30) days to investigate
a disputed item or items and if that item is
not verified by the reporting bank, it must
be deleted from your report. The law
requires banks to report information that
is 100% accurate.
Bank Account Resources
 |  |  |  |  |  |  |  |  |