Chexsystems reports can follow a consumer around for up to 5 years, and these reports can ultimately determine whether or not the consumer can open a bank account. Because this service is classified as a consumer credit reporting agency the good news is that consumers do have some rights under the laws. Any information that is disputed by the consumer must be investigated and verified, or removed from the report completely. These steps must be taken within 30 days of the agency receiving the dispute information, and even sooner in some states.
Updated: Jan 14, 2022
Fair Credit Reporting Act
Another right that consumers have is the right to opt out of any pre-screened credit offers. Consumers who choose to opt out do not allow their file to be released to companies offering services or products. The Fair Credit Reporting Act allows credit reporting agencies to provide a list of consumer names and addresses for these offers unless the consumer specifically opts out.
Consumer Statements
One of the consumer rights with Chexsystems reports concerns the right of the consumer to add a statement to the file regarding a negative entry. Any disputed items that are not removed must include a statement if the consumer provides one. This statement should be brief and to the point, and it should outline the dispute between the consumer and the financial institution. The agency must include this statement to anyone who requests the file on the consumer.
Legal Restrictions
Current laws restrict who can access the agency file of a consumer. Without written permission provided by the consumer the information in the file can only be released under certain circumstances outlined by the agency. In most cases even the spouse of the consumer can not access the information on file unless the spouse is given power of attorney authorization. Federal law only allows the information to be released for reasons considered legally permissible, and to individuals or companies that have a legal right to obtain this information.
The consumer rights in place with Chexsystems are the same rights that consumers have with any other credit reporting agency. Federal and state laws outline all of the rights in place to protect consumers when information is retained or provided by a credit reporting agency.
Rooting for ya,
Kelly Scott
