Share post
Debt Consolidation Forums Banking and Chexsystems forums

Help!!!! Bank reported me as suspected fraud

member profile picture

So this bank reported me as suspected fraud and I cannot get an account anywhere, what can I do? The debt is paid and they will not work with me.

you can try to file a dispute with chexsystems and / or the bank. But you can still get an account even with suspected fraud, you just need a bank that does not use chexsystems. May I ask where you live?

Sub: #1 posted on Wed, 11/21/2007 - 19:24

Mary Adkins Matthews Mary Adkins Matthews
Moderators Cum Industry Expert
(Posts: 755 | Credits: )

What do you mean they reported you? Did they charge off your account and send your info to ChexSystems? If so, it's really tough to get a bank to un-remove you. They won't do it unless it truely is a bank error.

Sub: #2 posted on Mon, 11/26/2007 - 10:09

swedishgirl swedishgirl

(Posts: 326 | Credits: )

Be careful because there is something going on around here with a scam. The bank contacts you and you have to call them (which is not them) and give your info or something and then by the time you figure it out your account is empty. And they say there is fraudlent activity on your account and your account has been frozen, thats how they get you to call them back. So far it has happened to only one bank here. But it has been plastered all over the news. So be careful.

Sub: #3 posted on Mon, 11/26/2007 - 10:32

puddlejmpr puddlejmpr
(Posts: 1634 | Credits: )

Everyone has the right to dispute with chexsystems the same as they can any of their credit reports. Chexsystems is a Credit Reporting Agency ( CRA ) governed by the Fair Credit Reporting Act (FCRA) and other laws. Under the Fair and Accurate Credit Transaction Act (FACTA) amendments to the Fair Credit Reporting Act (FCRA), they are subject to the same rules and regulations. This means that you are entitled to a free report every year and it is your right to dispute any information believed not to be accurate. The law requires banks to report information that is 100% accurate.

Once a person files a dispute, chexsystems has 30 days from the date they sign for the letter to respond. If you got your report by requesting a free annual report, then the law extends the dispute notification period to 45 days. After getting your letter they must confirm that they contacted someone to verify the information and the disputed information then stays in your report. When building a case against them, always make sure you send all mail certified. This could be extremely important later.

If they confirm that they could not verify the information, the information MUST be deleted from your report. After that you are entitled to receive an updated report (minus the disputed info).

If they do NOT respond to your dispute letter at all, you need to send a Demand for Removal letter because they did not respond. No response means they did not confirm. Therefore, the information MUST be removed.
If they claim they verified the information and nothing was deleted then you send a Procedural Request letter. If they say they confirmed the information, the law gives you the right to then verify how they confirmed. They must send the address, and telephone number of the individual or business they contacted within 15 days, so that you can confirm it. Ask for original copies of your signature, etc.

If you do all of the above and find they are in violation, make sure you keep copies of all letters and documents and ALWAYS SEND CERTIFIED MAIL. At this point, TAKE LEGAL ACTION!!!Before pursuing legal action, you have to build a "case". You should be able to prove there was an error, you notified them, but they did not correct it. You want to also show their failure to remedy the situation has harmed you financially (unable to open an account, etc.).

NEVER NEVER NEVER DISPUTE WITH THE BANKS BEFORE DISPUTING WITH CHEXSYSTEMS !!! This is important because generally if you dispute with the bank first and they verify it as valid, it makes it extremely difficult to catch chexsystems in error with the time frame . Remember they have 30 days to verify. If they can not do that in the time frame given then they must remove you.

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, and it provides a time requirement for reporting negative information. Banks cannot wait and report negative accounts when they want to. If they notified you by mail, they need to have reported you to chexsystems within 30 days to the date of the letter.

What does your Chex report say? Does it indicate a specific dollar amount is owed, or does it list NSF Activity, Account Abuse, Fraud etc. If the report says NSF abuse, or fraud, was there a negative balance on the account? Has it been paid? The idea is to catch them reporting an inaccurate amount.

When was the entry added to your Chexsystems report? If the account became negative , when was the first month it was negative? What month was it closed and when did the bank report it to Chexsystems? This helps determine when the five year clock should start ticking and when the account should have been reported by the bank.

Did you receive a collection notice from Chexsystem? THIS IS VERY IMPORTANT! If you received a collection notice, then it is a different situation. Chexsystems then must adhere to the Fair Debt Collection Practices Act. The fdcpa says they MUST validate and provide a full account history of all statements, signature forms, etc.

Were you the primary account holder? If not, did you ever sign a signature form or use the account? Chexsystems is subject to the same rules and regulations as set forth by the FCRA. Ask for origional copies of your signature, etc.

Another avenue to go if you cant get your item removed is to then dispute directly with the bank. This has worked out for many people on chexsystems. ( mainly when the money is paid in full ) Being listed in chexsystems can SEVERELY (if not completely) restrict your banking abilities. They can be held liable for multiple FCRA violations if the information they have on you is not correct.

If the bank has made an error, 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.

Another angle you may want to consider is how you are reported. Does the report indicate:
-Suspected Fraud

Chexsystems allows the vague "NSF" "ABUSE" AND " SUSPECTED FRAUD" flags because they are harder to dispute and remove. There are no clear standards for what is considered NSF, ABUSE, or FRAUD. They can mean anything a bank wants them to. What proof do they have to flag an account NSF, ABUSE, or FRAUD? html

Sub: #4 posted on Mon, 11/26/2007 - 12:24

Mary Adkins Matthews Mary Adkins Matthews
Moderators Cum Industry Expert
(Posts: 755 | Credits: )

How does one "suspect" Fraud and then have the right to report and effect your livelyhood. In a court of law, you have a right to a fair trial, suspecting you of something is a personal opinion and cannot be enforced without a fair hearing. So how do you fight this? I was with the bank for only 1 month, I ordered my my report and this bank closed my account on this reason and then reported me without the option of providing me a chance to explaination, also they say I owe them a balance they charged off but I was never told I owed anything and they closed my account so I had no access to pay this or even know the situation of my account. Is there a way to fight the bank?

Sub: #5 posted on Wed, 07/23/2008 - 09:07


MCA the link you attached is not working ... do you have another?

I assume the link included the way to order a free annual chexsystems report ... or were you talking about the free annual credit report?

Sub: #6 posted on Wed, 07/23/2008 - 10:02

smo65d11 smo65d11

(Posts: 1468 | Credits: )

BY LAW, doesn't the bank HAVE to tell you what's going on with your bank accounts? I wouldn't think a bank can just shut you down and not give you a reason why. Checksystems?...usually if you have a negative balance in your account and the bank has to close it for that reason.

Sub: #7 posted on Wed, 07/23/2008 - 20:02

sdchargers_63 sdchargers_63

(Posts: 1798 | Credits: )

...also wanna can bank suspect ANYONE of fraud if they have no proof of anything?

Sub: #8 posted on Wed, 07/23/2008 - 20:03

sdchargers_63 sdchargers_63

(Posts: 1798 | Credits: )

hmmm I am not sure why my web site does not work for you but the link is fine. I just had several people try it out and it works.

And since more and more banks are reporting people to chexsystems
for " fraud " or " suspected fraud " yet another vague Chexsystems entry indicator. "Fraud" means whatever the reporting bank wants it to at the time. Here are some recent examples that have been reported as "fraud" with different banks:

1) Elderly person falls victim to a pigeon drop scheme and deposits a phony money order in her account for $5,000. This individual is 84 and has maintained the account in good standing for over 25 years without a single overdraft. Her account is closed and she is reported to Chexsystems for "fraud", causing her monthly Social Security payment to be returned. What was aggravating is that she also had an investment account at the bank with over $11,000 in it. (Well Fargo)

2) An employment dispute caused the account holder's employer to issue a stop payment on a payroll check, resulting in over 400 of NSF charges. The account is closed and reported to Chex as fraud. (Compass Bank)

3) Small auto dealer sells a car, depositing a cashier's check for $6500. At the time of the deposit, he asks for $1000 back in cash. The dealer has owned the business for 22 years, and keeps a large average balance in the account. Because the cashier's check was a forgery, he is arrested on the spot, the account is closed and reported to Chex as fraud. (Chase Bank - formerly Bank One)

If you have been reported to Chexsystems for fraud, but you did not commit an illegal act, then I say make them prove and justify it. DISPUTE DISPUTE DISPUTE !

It was later determined that these individuals were victims themselves and no charges were filed. In the case of the stop payment, the individual has hired an attorney. The employer may have violated state law for refusing sales commission payments. All three are still trying to get the fraud entries removed from Chexsystems.

Sub: #9 posted on Thu, 07/24/2008 - 08:52

Mary Adkins Matthews Mary Adkins Matthews
Moderators Cum Industry Expert
(Posts: 755 | Credits: )

oh I am sorry, one more thing. I almost forgot, yes a bank can close an account for any reason, They do not need a reason other than they just no longer wish to do business with you. Generally when you open an account you would be given papers to sign, a signature card etc... the fine print will state such a fact. Deposit accounts can be closed without reason.

Sub: #10 posted on Thu, 07/24/2008 - 08:55

Mary Adkins Matthews Mary Adkins Matthews
Moderators Cum Industry Expert
(Posts: 755 | Credits: )

Page loaded in 0.667 seconds.