Disputing ChexSystems the normal route may not bring your desired results. The negative item may be verified by your bank as accurate causing the ChexSystems record to go unchanged.
Banks make mistakes all the time. Many times consumers give up on disputing errors, but you can get removed from ChexSystems, especially if you have documentation and facts to support your dispute. Remember, no decision is set in stone.
Just because a bank decides to report you to ChexSystems and verify your disputes with ChexSystems as accurate, does not mean your fight is over. You have additional recourse to get removed from ChexSystems after you have disputed directly with ChexSystems and disputed directly with the bank.
1. Your State’s Banking Commission
Each State has an agency, governing body or commission which oversees Banking Institutions in that State. These agencies can be your friend in handling consumer complaints. Many times they have an online complaint form which you can fill out to request they intervene in resolving matters.
When you make a complaint to a state agency about a bank, the bank gets serious about resolving your matter. Once the state agency receives a complaint, they contact the bank and the bank cannot ignore them. The state agency only gives them a certain amount of time to attempt resolution and report back.
You will discover once a complaint goes to a banking agency, your bank gets very serious about resolving your issue and a deletion of the mistake may occur instantly. Check out your State’s government website, you should be able to find what agency oversees banks in your State.
2. The Office of the Comptroller of the Currency (OCC)
The Office of the Comptroller of the Currency ‘s purpose is to charter, regulate, and supervise all national banks and federal savings associations. They ensure banks operate in a safe and sound manner and in compliance with laws requiring fair treatment to consumers and fair access to credit and financial products.
The OCC can also help resolve issues with national banks. Banks do not like when complaints are made to the OCC. If you have documentation or can support your complaint with facts and have exhausted your efforts with a bank to come to a resolution, the OCC may be able to help.
The OCC’s Customer Assistance Group (CAG) helps customers resolve issues with national banks and their operating subsidiaries. They have an Online Customer Complaint Form. Consumers filing complaints with the OCC have been pleasantly surprised at how quickly problems are resolved. An OCC complaint may be all you need to get removed from ChexSystems.
3. Goodwill Letter
Another way to clear your ChexSystems report is to make a plea directly to the bank for removal. Many consumers have been successful by just asking. This method works best if you pay or offer to pay the amount in question when requesting removal.
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 conduct financial transactions.
If a goodwill letter is not feasible, dispute directly with the bank. Under the Direct Dispute Rule consumers can dispute directly with the furnisher of the negative information. This means the banks are under the same rules as Chexsystems and they must investigate the dispute within 30 days. If the investigation is not conducted within 30 days, they must delete the item.
4. Consumer Financial Protection Bureau
Make a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. You can submit a complaint about a bank or credit union. These complaints can be about opening an account, accessing money, fees, or other issues. Any documentation to support your complaint can also be submitted online. If the bank is stating you committed some type of fraud ask the CFPB to have the bank explain the “alleged fraud.” Banks often use “fraud” as a reason for closing an account when in reality no fraud was ever committed. It is a vague, ambiguous term that banks use when reporting consumers to ChexSystems. It is also a detrimental term that causes a big headache for consumers trying to get new bank accounts. Make the bank explain what is meant by “fraud.” The CFPB will want to know what you want as a resolution to the issue. Tell your story and ask for a deletion.
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 and your bank of the error and nothing was done to correct the error.
Once a small claims lawsuit is filed you will more than likely get the outcome you are looking for without ever going to court. Lawsuits are costly and ChexSystems does not make money by hiring an attorney to litigate. 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.