The Dispute Process Begins

Sample Letter 1

*IMPORTANT* - You must send your report via CERTIFIED MAIL, with a return receipt requested.  This will not only ensure its delivery, but you will have a documented time of when it was received.  This is very important because Chexsystems is governed by the FAIR CREDIT REPORTING ACT as a consumer reporting agency. 

By law, they have to investigate and verify any disputed information within 30 days.  (45 days if the report was ordered as a free report) If they fail to respond or verify your information, all disputed information MUST be removed.  Many times, they fail to do so, and your information will be DELETED!

If they do verify your disputed information, send Letter # 2 below.  If they fail to respond within 30 days, send Letter # 3.   Send letter # 4 to the original bank that reported you.

Letter # 1 (Original Dispute with Chexsystems)
Your Name
Your Address
Chexsystems Consumer Relations
7805 Hudson Road
Suite 100
Woodbury, MN 55125
Date
RE: Consumer ID # (your consumer ID # here)

Consumer Relations Dept.:
I have recently been informed that there is negative information reported by (name of bank) in the file Chexsystems maintains under my Social Security number.  Upon ordering a copy of the report, I see an entry from this bank listing a "(condition such as NSF)" in (month/year).
I am unaware of ever having a "(same as condition above)" from this bank. 

Please validate this information with (name of bank) and provide me with copies of any documentation associated with this "(same condition as above)" bearing my signature.  In the absence of any such documentation, I ask that this information be immediately deleted from the file you maintain under my Social Security number.  This report is SEVERELY (if not completely) restricting my banking abilities. 


My contact information is as follows:

Your Name (printed or typed, not signed)
SSN
Address
Cc: (insert lawyer's name here)

Simplified form of letter 1 (some prefer)


Quote: My address, etc
Date:
CMRRR #________________________


Dear Chexsystems:

After reviewing the file that you maintain under my ss #__________________________, I see that you are reporting incorrect, or inaccurate information.  Please delete immediately.

Name of Institution
Date reported

I do not recall ever having overdrafts, account abuse etc, with this bank.  Please delete

You have 30 days to verify this information and to provide me with a document bearing my original signature.  If you cannot, I am demanding removal under the FCRA. 

Sincerely,

Some additional INFO that may help you on your first letter

The attorney part is just a scare tactic but don’t hesitate to forward a copy to your attorney general and their AG if they deny your 1st request.  Of course if you have an attorney this can also work in your favor. 


DON'T, I repeat DON’T give chexsystems or (your bank) the heads up on this.  DON’T call, don’t write (your bank.) - send your certified return receipt request to chexsystems, CC your attorney and make several copies for your records.


Do not send them, call them, anything for 27 days and then the only thing you will do is mail your demand for deletion same way (CMRRR) and in the letter CC your attorney, your attorney general, and their attorney general, and make sure after sending your 1st compliant to make a complaint to the OCC. 

Banks may wait long after the 180 days to send accounts to Chexsystems.  I know a bank that was routinely sending charged off checking accounts to Chexsystems 24 to 36 months after they were charged off. 

Chexsystems was using the date they got the report as the start date, instead of using the correct FCRA guideline.  This is called re-aging and is a clear FCRA violation. 

***From the FCRA - c) Running of reporting period.  (1) In general.  The 7-year period referred to in paragraphs (4) and (6)(2) of subsection [a] shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.***

After you send letter #1 you will be sent a Form Letter (this is not acceptable) so go on and send in letter #2

Letter # 2 (Send this 2nd letter if you receive a letter from Chexsystems saying your account was verified as "legitimate" by ChexSystems)

Your Name
Your Address
Chexsystems Consumer Relations
7805 Hudson Road
Suite 100
Woodbury, MN 55125
Date
RE: Consumer ID # (your consumer ID # here)

Consumer Relations Dept.:
This letter is in response to your recent claim that (Name of Bank) has verified this account to be mine.  Yet again, you have failed to provide me with a copy of any viable evidence submitted by (Name of Bank).  Be advised that the description of the procedure used to determine the accuracy and completeness of the information is hereby requested, to be provided within fifteen (15) days of the completion of your re-investigation. 

Additionally, please provide the name, address, and telephone number of each person contacted at (Name of Bank) regarding this alleged account.  I am formally requesting a copy of any documents provided by (Name of Bank) If (name of bank) does not validate the debt as per FDCPA § 809, it is a violation of the FCRA § 611.

Be aware that I am making a final goodwill attempt to have you clear up this matter.  The listed item is entirely inaccurate and incomplete, and represents a very serious error in your reporting.  This report is SEVERELY (if not completely) restricting my banking abilities. 

Failure to comply with federal regulations by credit reporting agencies are investigated by the Federal Trade Commission (see 15 USC 41, et seq.).  I am maintaining a careful record of my communications with you for the purpose of filing a complaint with the FTC and the state Attorney General's office, should you continue in your non-compliance. 
My contact information is as follows:

Your Name (printed or typed, not signed)
SSN
Address
Cc: (insert lawyer's name here)

simplified letter 2 (some prefer)


Quote: Date:

CMRRR #XXXXX

Dear Chexsystems:

After reviewing the file that you maintain under my ss# XXX-XX-XXXX and your response claiming verification, I see that you are still reporting incorrect, or inaccurate information.  Please delete immediately.

Name: Bank
Date reported:
Account Number: XXXXXXXXXX

You state the account was verified and updated, yet you did not provide me with the documentation used to verify this.  Further more, you completely disregarded the "reason" for closing.  It currently states that it was closed for "Account Abuse", yet there is no justification for such a status.  This should be removed immediately as it is preventing me from opening a bank account.

You have 30 days to verify this information and to provide me with accurate proof of this account being mine.  If you cannot, I am demanding removal under the FCRA.


Sincerely,

Silence is not acceptable!

Letter # 3 (Send if Chexsystems fails to respond to letter # 1 within 30 Days of 1st letter or 15 days after the 2nd letter)

Your Name
Your Address
Chexsystems Consumer Relations
7805 Hudson Road
Suite 100
Woodbury, MN 55125
Date
RE: Consumer ID # (your consumer ID # here)

Consumer Relations Dept.:
As I have not heard back from you in over (15-30) days regarding my notice of dispute dated (date your letter was sent), I must presume that no proof in fact exists.

You are currently in violation of the Fair Credit Reporting Act.

Your failure to respond, in writing, hand signed, and in a timely manner, will work as a waiver to any and all of your claims in this matter, and will entitle me to presume that you are reporting my name and social security number in error, and that this matter is permanently closed. Remove me from your records immediately.

Failure to respond within 30 days of receipt of this certified letter will result in a small claims action against your company.  I will be seeking $5,000 in damages for:

1.)Defamation
2.)Negligent Enablement of Identity Fraud
3.)Violation of the Fair Credit Reporting Act
For the purposes of 15 USC 1692 et seq., this Notice has the same effect as a dispute to the validity of the alleged debt and a dispute to the validity of your claims.  This Notice is an attempt to correct your records, and any information received from you will be collected as evidence should any further action be necessary.  This is a request for information only, and is not a statement, election, or waiver of status.
My contact information is as follows:

Your Name (printed or typed, not signed)
SSN
Address
Cc: (insert lawyer's name here)

Some additional INFO that may help you on your second letter

On the letter for no response CC state (MN ) attorney general (your state) attorney general your attorney name , the OCC as well since they are in violation at this point

I would definitely send one to your AG and theirs, as well as make a report with OCC.

List of State Attorney Generals / addresses

http://www.naag.org/ag/full_ag_table.php

This will send a clear picture to them that you mean business and they had better watch their step.

Now it is time to dispute with the bank!

How to figure out what basis to dispute on:

1.  Has the bank made a reporting error? The law requires banks to
report information that is 100% accurate. 

-If so, you send a Demand for Removal letter to a bank manager or
executive, notifying them of their FCRA violation.

-Examples: Incorrect name, SSN, address, dollar amounts, date of last
activity, date account first became negative. 

2.  Chexsystems allows the vague "FRAUD" "NSF" and "ABUSE" flags because they are harder to dispute and remove.  There are no clear standards for what is considered NSF, Fraud or ABUSE. 


Fraud can mean anything that a bank wants it to. Seem unfair? Of Course it is.

What proof do they have to flag an account FRAUD, NSF or ABUSE?) They can not prove intent to fraud or abuse of the bank.  Most people dispute based on these vague indicators.

Again, you are looking for any type of inaccuracy you can hold them accountable for.  The FCRA specifies that only accurate information can be reported.

3) Did you receive a collection notice from Chexsystems?

**THIS IS VERY IMPORTANT! If you receive a collection notice, then it is a different ballgame.  Chexsystems then must adhere to the Fair Debt Collection Practices Act.  The FDCPA says they MUST validate -- provide a full account history of all statements, signature forms, etc. 

Chexsystems or the bank does not have to validate with a signature.  The law says only outside collectors have to do that.  You can attack the outside collector by demanding validation, if they have put it on your credit bureau reports.

4.  Were you the primary account holder? **If not, did you ever sign a signature form or use the account?

Yes Chexsystems is subject to the same rules/regulations as set forth by the FCRA.  You should first "dispute" the item with Chexsystems and if it comes back "verified" within the 30 day time frame, you should request "validation" of the debt.  BE SPECIFIC if you request validation. 

Another avenue to go if you can’t get your item removed.  Being listed in Chexsystems SEVERELY (if not completely) restricts your banking abilities.  They can be held liable for multiple FCRA violations if the information they have on you is not correct..the information must be 100% correct.

Letter #4 (Send to the Bank (Corporate Headquarters) that reported you to Chexsystems and your report indicates abuse, or fraud of any type)

Date
Your Name
Name and Address
of original bank
Re: Acct # 000-000-000-000

To Whom It May Concern:

This is a formal notice of dispute regarding information (Name iof Bank) sent to Chexsystems, a consumer reporting agency.

 The following false information was sent to Chexsystems:

(List the information the way it is shown in Chex report)

This information was disputed with Chexsystems on (date), however, (Name of Bank) verified the information as accurate.  This falsely reported information damages my financial reputation and should be removed immediately.

(Name of bank) reported account abuse,suspected fraud or fraud  when in fact, no abuse,or fraud took place. There was no illegal activity on the account. 

If no money is owed to the reporting bank. Also state in the letter that (Name of Bank) did not experience any financial loss and no money is owed on this account. There was no violation of the account agreement that governed the account. If money is owed, still send the same letter but do not include that information. They are still in violation for reporting as such.

Under my rights under the Fair and Accurate Credit Transactions Act, I am asking for an investigation of this reported information, and removal of the false information reported to Chexsystems.

Sincerely,

cc:  (the bank branch that the account was opened at)


If your report indicates NSF then send the following letter to the reporting Bank.

Date
Your Name
Name and Address
of original bank
Re: Acct # 000-000-000-000

To Whom It May Concern:

This letter is regarding account # (insert # here), which you claim (insert condition here, such as “I owe $-----").  This is a formal notice that your claim is disputed.

I am requesting validation, made pursuant to the Fair Debt Collection Practices Act.  Please note that I am requesting "validation"; that is competent evidence bearing my signature, showing that I have (or ever had) some contractual obligation to pay you.

Please also be aware that any negative mark found on my credit reports (including ChexSystems credit reports) from your company or any company that you represent for a debt that I don't owe is a violation of the Fair Credit Reporting Act; therefore if you cannot validate the debt, you must request that all credit reporting agencies delete the entry.

Pending the outcome of my investigation of any evidence that you submit, you are instructed to take no action that could be detrimental to any of my credit reports.

Failure to respond within 30 days of receipt of this certified letter will result in legal action against your company.  I will be seeking a minimum of $5,000 in damages for:

1) Defamation
2) Negligent Enablement of Identity Fraud
3) Violation of the Fair Credit Reporting Act

For the purposes of 15 USC 1692 et seq., this Notice has the same effect as a dispute to the validity of the alleged debt and a dispute to the validity of your claims.  This Notice is an attempt to correct your records, and any information received from you will be collected as evidence should any further action be necessary.  This is a request for information only, and is not a statement, election, or waiver of status. 
My contact information is as follows:

Your Name (printed or typed, not signed)
SSN
Address
Cc: (insert lawyer's name here)

Here are some testimonals of those that have been successful from our forum:

------------------------------- 
Wow..i'm glad you posted your experience! Thanks! I had 2 chex entries. One from bofa and citibank. I finally disputed them 2 weeks ago and got 3 letters in the mail. One stated that "prior to receiving your communication, the information submitted by us by BofA was deleted at the request of the source of the information." I was like..WHAT??? They were my newest chex entry and i thought they would be the worst to get off! Whatever happened, i'm happy about it.

Second letter stated, we are still investigating Citibank and will contact you after the investigation is completed. I'll just have to wait and see..but thanks for making me a feel a little better. To know that you had success!

-----------------------------------

Gotta use the right words, Order a new report again and (if they're still there), fill out the dispute form but this time, write the words NO EVIDENCE OF DA DA DA whatever it is they're reporting you for.

Like I said on another thread, if it's a small enough balance you can pay off anyway, pay it and get a receipt. Then write NO EVIDENCE OF DEBT OWED - MUST DELETE. Because you paid, they won't have any evidence that you have a debt balance anymore, and them reporting that you have a debt owed is inaccurate information and therefore must be deleted. Never, ever write "balance paid." This may just merely update the debt status of your entry - so you're entry would still be there and that's definitely not the goal here. The key defense is their inaccuracy plus lack of evidence, which are grounds for deletion.

As for fraud, oh THAT is the easiest. I disputed my BofA fraud entry without even any additional statements and voila it disappeared like a bubble.

But yes, BofA is the root of all evil. On the other hand, a good, clean chexsystems record is your jumping off point to start a relationship with any other bank you want...and even open accounts instantly online.


----------------------------------------

well folks...here's an update on my dispute. Received a long letter from chexsystems stated that Citibank failed to validate the information on time so therefore "WE HAVE REMOVED THE ENTRY FROM YOUR CONSUMER REPORT!" Yeh!!!! So now I'm chexsystem FREE!!! But they did indicate that if they do verify it and it is accurate they will put it back on my report, but will send me a letter when and if it happens. I have been disputing my chexsystem report and baddies on my credit report at the same time. I got some bad news from Transunion stating that one of my dispute was "frivilous" (it's okay, i did my research and have the perfect letter to send them!) but overall today was a great day once i opened up the chexsystem letter. Thanks for all the help, guidance and advice. I wouldn't have known to do any of this without all you kind people. Thanks! I'm on my road to "recovery".

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As I suggested on another thread, when you order your chex report and there's only one entry there, and there's a small enough balance that you wouldn't mind paying anyway:

a) Pay off that balance and get a receipt; and
B) Then fill out the chex dispute form and specificy that you're disputing that particular account, the reason being - INACCURATE INFORMATION. NO EVIDENCE OF DEBT OWED. MUST DELETE.

The above "wording" takes advantage of the investigation process and the laws regulating inaccuracies and evidence:

a) Chex will challenge the bank to verify the accuracy of the debt owed;
B) Because you paid it, and you have proof of payment, the bank digs into their records and realizes that they had listed inaccurate information; and
c) Because you paid it, the bank will fail to provide evidence of the debt owed and they are required to delete it.

In any case, if the bank fails to respond to Chex within 30 days (21 in ME) anyway, it gets deleted by Chex without further ado.


Good luck!

---------------------------------------------

Hi,

About 2 months ago, I got tried to open an account at Wachovia and was denied because of my chexsystems report. I requested a copy of my consumer report from chexsystems and it showed a fraud charge from Bank of America which I had been told by customer service in the security department would not be held against me. So I filled out the form send in the consumer report and sent it back. Yesterday (which was about 3 weeks after I sent the dispute) I got a letter and another consumer report from chexsystems stating (and showing) that the charge had been erased. I was very happy and also surprised because it happened after just one letter to them.


-----------------------------------------------------

Well after being a complete pain in the behind for the past 27 days I received a notice from BOA today that they are removing my file from Chex Systems and EWS.

They are claiming they will not reopen my accounts with them (like I would want to at this point) but all reports to Chex and EWS will be removed. Now I just have to wait for verification from Chex Systems that they were removed.

I want to thank MCA and everyone here for the information posted. This came shortly after I sent a scathing letter and several documents proving that their "Suspected Fraud" reporting was unfounded to the CEO of BoA (whose address I got from MCA). I figure he got the packet certified, wondered why he had to deal with this and told some underling to get rid of me.

So once again, thanks to everyone here. Today is a good day.

  

 

 

Once you become familiar with the specific sections of the United States Code you will discover fixing your credit is very simple. The information we provide is what the creditors, credit bureaus, collection agencies, and the credit repair companies do not want you to know. Use these laws for your sample letters as they apply.

Fair Credit Reporting Act (FCRA) – is a Federal Law that monitors the collection, dissemination, and use of consumer credit information.   The Fair and Accurate Credit Transactions Act (FACTA) – is a Federal Law that allows consumers to receive FREE credit reports once every 12 months from Experian, Equifax, and Transunion. This also includes any other credit reporting agency such as Chexsystems, Telecheck and EWS.   Fair Debt Collection Practice Act (FDCPA) – is a United States statue that was created to protect consumers from abusive collection tactic, and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the accuracy of the information.   Credit Repair Organization Act (CROA) - was put in place to protect consumers from unfair business practices performed by credit repair organizations.

Fair Credit Reporting Act & Fair Debt Collection Practice Act 1. Creditor prohibited from collecting [FDCPA Section 808(1) 15 USC §1692f(1)] 2. Consumers right to dispute [FCRA Section 615(a)(3)(B), 15 USC §1681m] 3. Creditors shall investigate credit bureau info [FCRA 623 (b), 15 USC 1681s-2] 4. Creditor shall validate in 5 days after notice [FDCPA Section 809(a) 15 USC §1692g] 5. Credit bureaus must reinvestigate [FCRA Section 611(a), 15 USC 1681i] 6. Method of Verification [FCRA Section 611(a)(6)(B)(iii) & 611(a)(7), 15 USC §1681i] 7. $1,000 Willful Non-compliance [FCRA Section 616, 15 U.S.C. § 1681n] 8. Civil Liability for Negligent Non-compliance [FCRA Section 617 15 U.S.C. § 1681o]

9. Dispute with the credit bureaus first to sue creditor [FCRA 623a(8) 15 U.S.C. § 1681s-2] 10. Bureaus must notify of deletions [FCRA Section 611, 15 USC §1681i (a)(5)(A)(ii)] 11. Creditor can’t call after 9pm or before 8am [FDCPA section 805, 15 USC 1692c (a)(1)] 12. Stop creditors from calling [FDCPA Section 805(c), 15 USC §1692c] 13. Violation for reporting after 7 years [FCRA Section 605(a)(4), 15 USC §1681c(a)(4)] 14. Violation for creditor misrepresenting [FDCPA Section 807(2) 15 USC §1692e (2)] 15. Frivolous dispute letters [FCRA Section 611(a)(3), 15 USC §1681i (a)(3)] 16. 7 year reporting starts 180 days after delinquency [FCRA Section 605(c)(1)(2) 15 USC §1692c(1)(2)]