Sample letters for Chexsystems and Telecheck
There are five stages to disputing:
1. Gather the facts and send the initial dispute letter.
2. If the information is not removed, send a procedural request.
3. If the procedural request does not result in removal, dispute with the original creditor.
4. Send the ITS - Intent to Sue Letter
5. File complaints with the bank regulator, the state attorney general - and consider legal remedies.
Step 4 is allowed under FACTA [Amendments to the FCRA]. You can dispute directly with the original creditor if the credit reporting agency does not resolve the situation. The original creditor must investigate and respond within 30 days.
The "procedural request"
This is where Chexsystems/Telecheck must show how they "verified" the information with the bank
NOTE: Neither the FCRA or FACTA require them to produce documents as proof. However, they must indicate how they verified.
If it has been 15 days, send the Intent to Sue letter to a Chexsystems/Telecheck executive
[I like to send to their legal counsel] for their FCRA violation. Send a certified RRR dispute letter to a bank executive, indicating they are in violation of the FCRA for verifying inaccurate information with Chexsystems.
***** It is VERY IMPORTANT that you send everything certified mail and make sure you keep copies of everything sent *****
ChexSystems/Telecheck Dispute
Step1. INITIAL DISPUTE LETTER
Chexsystems/Telecheck has 30 days from the date they sign for the letter to
respond.
NOTE: 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:
1) Confirm that they contacted someone to verify the information.
-The disputed information then stays in your report.
2) Confirm that they could not verify the information.
-The information is deleted from your report.
-You receive an updated report (minus the disputed info).
Step2. NO RESPONSE TO DISPUTE LETTER
-You Send a Demand for Removal letter because they did not respond.
-No response means they did not confirm. Therefore, the information
must be removed.
**3. DISPUTED INFORMATION NOT DELETED
-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.
**4. 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.).
-If you applied for an account and were declined based on the
information that provides additional documentation. Fines are
outlined in the Fair Credit Reporting Act. Most state law conforms to
the FCRA, but there may be a state law where you live that outlines
specific remedies.
What if the Consumer Reporting Agency Stands by Its Report?
1.You have the right to present your side of the story in a brief statement (100 words
or less), which the credit bureau must attach to your credit file. Your statement should
be used to clarify inaccuracies, not explain reasons for delinquency. Anyone requesting
a copy of your credit report would also automatically receive your statement (or a
summary of it), unless the credit bureau decides that it is irrelevant or frivolous.
2.WHEN YOU MAKE A COMPLAINT TO THE OCC...GENERALLY THIS WILL GET
THE BANKS ATTENTION VERY FAST !!! THEY DO NOT LIKE COMPLAINTS
FROM THE OCC.
The OCC's Customer Assistance Group is ready to help customers of national
banks with questions or complaints they have about their financial institution.
call: 1-800-613-6743.
If You Have a Problem With a National Bank or its Operating Subsidiary
The OCC Customer Assistance Group was created to answer questions, offer
guidance,and assist consumers in resolving complaints about national banks
and the subsidiaries.
The first step is to try to resolve a complaint directly with your bank or its
operating subsidiary before involving an outside agency. If you are unable to
do so or are uncertain about whether your complaint involves an organization
that the OCC supervises and regulates, the OCC Customer Assistance Group
will try to assist you.
General inquiries about banking laws or practices often can be answered on
the phone or through email by a Customer Assistance Specialist. The
specialist may all be able to suggest other ways for you to try to resolve your
problem directly with the bank or its subsidiary.
3. File a Complaint with FTC
GO HERE for ONLINE complaint form
4. To file a complaint against a Credit Union
Now that you have read the above summary ..........The Dispute Process Begins (sample letters)
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/Telecheck)
Your Name
Your Address
Chexsystems Consumer Relations
7805 Hudson Road
Suite 100
Woodbury, MN 55125
Date
RE: Consumer ID # (your consumer ID # here)
for telecheck replace with the following address:
TeleCheck Services, Inc.
Attention: Consumer Resolutions-FA
P.O. Box 4514
Houston, TX 77210-4514
Consumer Relations Dept.:
I have recently been informed that there is negative information reported by (name of bank) in the file Chexsystems/Telecheck 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/Telecheck or (your bank) the heads up on this. DON’T call, don’t write (your bank.) - send your certified return receipt request to chexsystems/Telecheck ,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/Telecheck. I know a bank that was routinely sending charged off checking accounts to Chexsystems/Telecheck 24 to 36 months after they were charged off.
Chexsystems/Telecheck 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 that generally says something about a re-investigation (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/Telecheck)
Your Name
Your Address
Chexsystems Consumer Relations
7805 Hudson Road
Suite 100
Woodbury, MN 55125
Date
RE: Consumer ID # (your consumer ID # here)
for telecheck replace with the following address:
TeleCheck Services, Inc.
Attention: Consumer Resolutions-FA
P.O. Box 4514
Houston, TX 77210-4514
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 it is a violation of the FCRA [611 [15 U.S.C. § 1681i] 6 A (iii) a notice that, if requested by the consumer, a description of the procedure used to determine the accuracy and completeness of the information shall be provided to the consumer by the agency, including the business name and address of any furnisher of information contacted in connection with such information and the telephone number of such furnisher, if reasonably available.
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)
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)
for telecheck replace with the following address:
TeleCheck Services, Inc.
Attention: Consumer Resolutions-FA
P.O. Box 4514
Houston, TX 77210-4514
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.
If a procedural request was sent and it has been more than 15 days, they need to remove you and are in violation of the following:
[611 [15 U.S.C. § 1681i] (7) Description of reinvestigation procedure. A consumer reporting agency shall provide to a consumer a description referred to in paragraph (6)(B)(iii) by not later than 15 days afterreceiving a request from the consumer for that description.]
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/Telecheck 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/Telecheck?
**THIS IS VERY IMPORTANT! If you receive a collection notice, then it is a different ballgame. Chexsystems/Telecheck 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/Telecheck 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/Telecheck 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/Telecheck 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:
The following false information was sent to Chexsystems/Telecheck:
(List the information the way it is shown in Chexsystems/Telecheck report)
This information was disputed with Chexsystems/Telecheck 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/Telecheck.
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/Telecheck 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)
-