chexsystems dillema over $16, in 2002.?

Question

My husband was a NY resident and had got his first checking account in 2001. He was 20. His boss helped him open it. It was at a credit union, with only 4-5 locations. The name of this credit union was Empire FCU (www.empirefcu.org).

He used the account to simply cash his paychecks at. Then he bought an online service so he could go online.

The online service double charged him and he went -$16.00. The bank didn't charge over-limit fees but allowed him to correct the issue by repaying the charge. They gave him until Tuesday that next week, he told them he didn't get payed until Wednesday so he went in Wednesday and paid the $16.

They failed to take into account he wasn't payed until Wednesday and put a charge on the account, which he payed off. He infact to this day has the account in good standing.

They put him, however, into Chexsystems for $16 and put on his report Electronic Transfer Abuse. They didn't specify an amount. He has disputed this over and over again. Help?

The credit union changed to EMPOWER FCU, this past few months. They reinstated him into chexsystems for another round. He had two entries from this bank on this issue, one expired, and one was renewed in Oct. 2003 putting him in until Oct. 2008. When they went to Empower they re-put another entry on him. It's ruined his life for many years over $16. He has all statements and can prove he payed and his checking and savings account are in good standing. Empire revoked his debit card until he met me in 2005 and I got it disputed and his debit card back. It's put a damper on us moving on. He has to basically stay in this location because he can't bank anyplace else and I can't even put him on my accounts.

Answer 1

Chex reporting is for 5 years and cannot legally be re-aged.

I hope your husband has copies of all the disputes he has made and proof of any negative impact the re-aging had made. (paper trail)
It's good that he has kept all of the bank statements, etc.

File an online complaint with the FTC and with your AG about the credit union and Chex re-aging the listing.

Resubmit your dispute with Chex and include a printout copy of your FTC complaint.

The FTC normally does not do anything unless they receive quite a few complaints. Even so, the credit reporting agencies and Chex don't like to be singled out with complaints and they generally do the right thing when they realize a compaint has been filed.

If that fails, your husband might want to speak with an attorney.

You might also check out www.chexvictims.com
It's a great site where people talk about their problems with Chex and what they have done, or tried to do, to resolve the problems.

Answer 2

From clarkhoward.com

"Getting out of Chex Systems prison
Did you know that the banking industry has a kind of check prison? It’s not a prison that keeps you locked in, but that locks you out of the banking system entirely. Basically, a bank can arbitrarily decide to punish you if it suspects you have “misbehaved” with your checking account. It’s called “Chex Systems,”and once you are in this system you cannot have a checking account for five years. Now, if you don’t balance your checkbook and you commit overdrafts, there is a reason behind the bank’s decision. But if you make a mistake or the bank makes a mistake, there is no recourse. Say you move and close your account and a check bounces later, there should be an alternative. But right now there is not. If you get put into Chex Systems, there is no appeals process. It’s highly controversial, and consumer advocates have been fighting it for years. Under recent revisions to the Fair Credit Reporting Act, you can now appeal to Chex System itself. But the banks can still send you to Chex Systems prison on a whim. Thankfully, about a dozen states around the country allow you to get out of the program by taking a course in budgeting and handling finances. You receive a voucher to go open a checking account once you finish the course. Go to getchecking.org to see which states offer the class. But if you live in a state that does not have this “out,” appeal to Chex Systems directly. "