ChexSystems, fraud and account abuse reported

Nov. 16, 2009 - PRLog -- 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. A growing number of banks are now blaming customers for bad checks and closing their accounts, reporting them to chexsystems and worse, reporting them for "suspected fraud or fraud"Never accept checks from individuals you do not know. If there is not an established business or personal relationship, you are taking a huge risk.

Legally, the account owner is bound by the agreement that was signed when the account was opened. Most standard agreements indicate the primary account holder is responsible for deposits and will maintain the account in a positive status.

If fraud is indicated on your report, it should always be disputed.

-Everyone has the right to dispute with Chexsystems. For help and free sample letters, go to my web site for ChexSystemsDisputes

-Many banks and credit unions are also now reporting to Early Warning Services (EWS)

Once on chexsystems, your name will remain on file for 5 years unless you file a dispute and there is no guarantee to be removed even with dispute. Paying the bank will NOT remove you from chexsystems. Many people believe and are even told it will but it will NOT.
Here are some examples I have seen 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.

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 Chexsystems as fraud.

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 Chexsystems for fraud.

4) A person accepts a personal check from a friend that owes her money. The check is returned as NSF. The bank closes the account and reports her to chexsystems for fraud. 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.


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 four are still trying to get the fraud entries removed from Chexsystems.


http://www.chexsystemsvictims.net/2009/11/chexsystems-fra...

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A web site dedicated to helping those reported to chexsystems. This includes a FREE list of non-chexsystems banks and credit unions listed by each state and also includes FREE help with chexsystems removal and sample letters