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How to Dispute a Fraud Notation in ChexSystems

A fraud notation in ChexSystems is very serious and can damage your reputation. Get strategies to remove fraud from ChexSystems.

Fraud notations in ChexSystems are very common but also very ambiguous. What type of fraud was committed by the customer, if any.

Fraud seems to be a “blanket” notation used by financial institutions so they will not have to detail why a consumer was reported to ChexSystems.

A fraud notation is very serious but can be the easiest to dispute.

How to Dispute ChexSystems Fraud Notation

ChexSystems is a consumer reporting agency which means they are governed by the Fair Credit Reporting Act. ChexSystems has 30 days in which to investigate a dispute. If the dispute is not verified by the bank which reported the fraud notation, it must be removed.

1. Dispute directly with ChexSystems. Dispute the fraud notation and if ChexSystems verifies the notation as accurate, request specific documentation of the alleged fraud. More than likely, the bank will be unable to provide any documentation proving you committed fraud due to the vagueness of this notation. You may have deposited a check someone gave to you for repayment of a loan and that check bounced. Now the bank accuses you of fraud. How is it determined you intended to fraud the bank when you deposited the check? Banks can rarely prove you purposely intended to commit fraud.

2. Dispute directly with the bank. Under the FACT Act, you can also dispute directly with the furnisher of information, meaning the bank. They are under the same 30-day timeframe in which to investigate the dispute or delete it from your ChexSystems report. But before you do this I suggest disputing with ChexSystems first, the item may be removed with that dispute and if so, your work is done.

Fraud is a very serious notation in ChexSystems and negative information in ChexSystems can remain 5 years. Banks often make vague and ambiguous notations such as “fraud” or “account abuse” in consumer’s ChexSystems reports. If you did nothing illegal, request the bank prove and justify their fraud notation.

3. File a Complaint with the OCC. The Office of the Comptroller of the Currency supervises all national banks and federal savings associations. The OCC can help resolve issues with your bank. In some instances, they may refer your complaint to the Consumer Financial Protection Bureau which also handles complaints against banks.

If you have documentation or can support your complaint with facts make an online consumer complaint with the OCC. You will discover the OCC process moves quickly and efficiently. Banks do not like it when complaints are made to the OCC. You may find the issue resolved, in your favor, with little effort.

4. Other governmental agencies for complaints.

If you are unable to get a bank account due to ChexSystems there are options with banks that don’t use ChexSystems, bank accounts for bad credit and second chance banking opportunities.

More ChexSystems Resources

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