Chexsystems Inc

by Jessica
(Ransom, Ky, US)

My husband and I had a checking account 5 years ago and was closed for NSF. Needless to say, they reported to ChexSystems. Last month we tried to start a new checking acct. and they wouldn't let us because we owed the previous bank money. So we contacted the bank and they has sold the debt to a collection agency.

We have called the agency several times over the last month trying to resolve the debt, cant get anyone to return our calls. What do we do now? are they allowed to say we owe money and then not give us the opportunity to pay?

Chexsystems will not remove the debt until its paid. I know this can't be legal, can it?

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Feb 11, 2010
Chex Systems Inc debt verification
by: Gerri

Thanks for submitting your debt collection question on our Q&A page.

For our readers who don't know, Chex Systems Inc. is a consumer reporting agency that collects information on consumers who have had problems with bank accounts (mostly overdrafts and bounced checks) and supplies that information to other financial institutions. If you have a negative report in ChexSystems Inc it can be hard to open a new checking account.

Negative information remains on file for five years. It must be removed after five years, paid or unpaid. I am curious - why are you under the impression it will remain there forever? Who told you that?

Chex Systems is governed by the Fair Credit Reporting Act. Just like with your credit reports, under that law, you have the right to dispute information you believe is inaccurate or incomplete. Chexsystems must investigate and confirm the information, or delete it.

In your case, it appears the information is about to drop off your report, so you may not have to do anything but wait for it to be removed.

But if that were not the case, then my next step would be to advise you to dispute the information with ChexSystems, if you believe it to be in any way inaccurate or incomplete. Have you taken this step? If the collection agency is not responding to you, then perhaps they won't respond to them either. If they don't, the information must be dropped.

If you have already taken this step, then I would suggest you follow the instructions provided with your ChexSystems Inc report for filing a dispute directly with the collection agency. There should be an address provided on your credit report for contacting them. If not, Chex Systems must supply it at your request.

Sent a certified letter to the collection agency asking them to verify the debt listed on your report, or remove it. By law, they have thirty days to respond.

Again, I don't think this step is necessary because it appears the item is about to be removed anyway, but I did want to provide additional information for other readers who may be dealing with Chexsystems Inc.

I will add that it is possible the collection agency has already broken the law in their failure to respond. If you want to pursue that route, I suggest you get a free consultation with a consumer law attorney. Find out how to get FREE or low cost legal advice about debt collection from a consumer law attorney here.

Be sure to read the first chapter of Debt Collection Answers online for free!

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