Help!!!! Bank reported me as suspected fraud

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?

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.

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.

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:
-NSF
-Abuse
-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?

http://www.debtconsolidationcare.com/banking/remove-name.html

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?

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?

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.

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

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.

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.

Good grief!! It's very sad that a bank has the authority and ability to ruin someone's reputation and disrupt their life like that without any due process!!

yes I agree...insaine isn't it? Now frozen funds are not the same. Although you can not stop them from closing your account, normally they will freeze your account for a certain time period.

Fight It!

1) Go into the bank and speak with the branch manager where you have the account.
2) Demand to see in writing where the Federal Reserve allows them to hold your funds for that extended period.
3) Send a fax to both the local branch manager and a bank executive [VP], demanding your money. Ask them to show you legal proof that allows them to hold your funds hostage

3) In the fax, tell them if they do not release your funds immediately, you will find complaints with the following authorities:

- The Attorney General for Your State
- The State Agency that Regulators the Bank
- The Local Justice of the Peace

IN addition you may want to file a complaint with the OCC as well

http://www.toplawfirm.com/Decision.pdf

I received a letter in the mail, along with a check. The letter read I was approved for a grant through some company in Canada. The check was for the "fees" I would have to pay for the grant. It ALSO said, in the latter, I can deposit the check in my account and a debit, from the company, for the fees, would be taken out. Well.......to make a long story short, I called the phone number of the bank and the company that SUPPOSELY wrote the check to me. It was an awful scam..which I figured anyway. Never deposited the check. The company ( in Canada ) called me a few days later and told me a had a certain amount of time to cash this check. I told them I was not interested. They got really irrate. Anyway...............just letting all of you know please beware of scams like this.

I can not tell you how many people lose accounts and are reported to chexsystems because of bogus checks like that. Or some lottery winnings etc. NEVER TRUST THESE THINGS. unless you can go to the bank in which the check is written on cash it , do not deposit it to your account, chances are it is always going to be bad news.

which is a bummer when you either live in a state where your bank doesn't have a branch, or if the check that was sent to you if from a bank that is not in your state ... which is why I love money orders!

ok so i tried to open a new account yesterday and was told my previous bank had reported suspected fraud to chexsystems...i tried to resolve it with the branch manager who reported it and she denied reporting it as suspected fraud..this morning i cleared my name by visiting the banks vice president...he gave me a letter stating i was innocent of fraud..and their firm would be removing that from my chexsystem report..this was good enough for the new bank to go ahead and open my account...i suggest to anyone in this situation to follow up with higher management if it happens to you...the original manger that reported it did not like me to much after i had an argument with her over my account..turns out she had a personel vandetta against me...she was fired this morning because she lied to her boss..she had told him she did not report me that way even though he was looking at the screen of his computer that showed she had....needless to say i was thrilled...i dont normaly wish for people to be fired but in this case i was very happy....these bank managers have to much power in their hands if you ask me.....

Wow, Mac! Good for you!! :)

And also good advice about going to higher management. Sometimes it definitely pays to keep going up the ladder!

not enough people will take that extra step and go up the chain of command. Management and supervisors are paid more than the average joe for a reason ... make them work for it!

i can't open an account coz the bank that i was trying to open with told me that i have a caes with another bank that i deposited money orders that are not good,these money orders is a payment for the money that was borrowed by a friend,and i was trying to call my friend abt this issues and not returning any call...i dont want her to be in trouble but my name was ruined because of her,will the bank charge me with fraud in court without getting money from them?this case was 1 year ago...what will i do to clear my name?

Bothered girl, do you still owe the bank money?

Bothered....your friend gave you fraudulent money orders and you dont want her to be in trouble??? I dont get it.....sounds like a 409 nigerian scam.

she sure doesn't sound like a "friend" to me

i dont owe any money in the bank since the bank told me that the money orders are not good....and i went to the bank yesterday and talked to the manager and he said account was already closed and he can't help me to clear my name...

Are you going to report your "friend" or not?

thank you this thread was very helpful

Not all banks use chexsystems, just go with a bank that doesn't use them. Also, can't you file a dispute with chexsystems and show them the proof that you paid off your debt?

Yes you can dispute a Chexsystems report.

A friend of mine is on a lot of medication which cause memory lose, and this friend went to a casino and unknowingly withdrew $4000.00 from their account. For some strange reason the ATM machine must have had a malfunction to allow a person to withdraw this amount of money and the person's personal account has a $500.00 stop. Now the bank says they can have my friend arrested for the withdrawals, they even went as far as saying they were going to investigate as to how this could have happened with an ATM machine since they have never seen this happen before. Since my friend has no memory of doing this, can they have them arrested, and if so, can they spend jail time and how long. My friend is really scared and doesn't know what to do at this point, especially since they don't remember doing this.

Chase bank closed my account due to a fraud alert Bank of america put on my account that I am in the process of disputing my account was closed 10/15/10 but they accepted an 1800.00 deposit on 10/15/10 when I got ready to use my card it was declined they then informed the account was closed and said I had to wait 14 days on a cashiers check to be mailed can they do this?

Generally it is 30 days before you can get your money back but yes it happens all the time It sounds like your problem is with EWS

my bank froze my account and is in the process of closing it , they told me i had to many returned deposits and i was considered high risk , but my direct deposits from my job covered all deposits plus some they will not let me withdraw any money they said i should recieve a cashiers check in about 15 days , my employer only does direct deposit what can i do , will they report me to checksystems ? also i am on my husbands account at another bank , will they close our acct , his Social Security deposit goes in that bank, we are left with no money and my son is at an out of town college with no access to any money , what are my options

Which bank is it? Many banks today are worried about fraud and will close accounts that are considered a risk. The biggest problem is the same one that you have now, having too many checks that have not cleared. It is the most common reason that a bank will close an account that is in good standing. More than likely yes they will report you to chexsystems depending on which bank it is.

As far as being able to get your money faster, I can tell you that 15 days is not too bad ..I know that doesn't help but generally it is 30 days with many other banks.

Fight It!
1) Go into the bank and speak with the branch manager where you have the account.

2) Demand to see in writing where the Federal Reserve allows them to hold your funds for that extended period.

3) Send a fax to both the local branch manager and a bank executive [VP], demanding your money. Ask them to show you legal proof that allows them to hold your funds hostage
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3) In the fax, tell them if they do not release your funds immediately, you will find complaints with the following authorities:
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- The Attorney General for Your State

- The State Agency that Regulates the Bank


-The FTC


-The OCC

I have several accounts in chexsystems...all a couple of years old, though i am nervous that woodforest might report me. What reason would they report you for fraud (assuming you didn't somehow actually try to committ fraud)...that is scary to me, i'm wondering if I am being reported this way...what can i do, how will it affect future banking, etc

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.


[COLOR=#222222]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. [/COLOR][COLOR=darkred]Most people dispute based on these vague indicators.[/COLOR]
[COLOR=darkred]Once you have been reported to chexsystems, most of the banks that use chexsytems will not allow you to open an account. This is the same with banks that use telecheck and EWS (if you are reported to them as well) [/COLOR]
[COLOR=darkred]As far as the fraud being reported or indicated onthe report, yes there are some banks that will make exceptions for those reported if fraud is not indicated on the report. [/COLOR]

So basically...disputing is impossible?

Most people dispute based on these vague indicators.
http://www.chexsystemsdisputes.com/Sample_Letters.html

what do banks see when they take you off of chex systems and chex systems sends them a confirmation. Do they see your whole consumer report?