On ChexSystems List? Know Your Rights Under the Fair Credit Reporting Act
The Fair Credit Reporting Act promotes the accuracy and privacy of information in consumer credit reports. It also controls the use of credit reports and requires consumer reporting agencies to maintain correct and complete files. According to this act, you have a right to review your credit report and to have incorrect information corrected. Know this—The Fair Credit Reporting Act applies to ChexSystems, and can help you correct your ChexSystems Consumer Report.
Below is a summary of your rights under the Fair Credit Reporting Act. If you are having ChexSystems problems, you should know that you have these rights. If you are interested in learning more, and learning how to use the Fair Credit Reporting Act to GET OFF ChexSystems, visit http://www.getoffchex.com.
Issuing Credit Reports
Credit bureaus, the most common type of consumer reporting agency (CRA) that compiles and issues credit reports, are required to help you understand your report. ChexSystems is a CRA. Reports can be issued only to those with a legitimate business reason. These include creditors, employers, insurers, and government agencies reviewing your status for licensing or benefit purposes, or any third party for whom you request a report.
ChexSystems Consumer Report Errors
If you find an error on your ChexSystems consumer report, you should notify ChexSystems in writing immediately. ChexSystems is responsible for investigating and for changing or removing any incorrect data. The source of the error must then notify all consumer reporting agencies where they sent information. If you are not satisfied with the correction, you have the right to add a brief statement (100 words or less) about the issue to your ChexSysetms report. The statement should be a clarification, not an explanation, of credit problems.
Denied Credit (or bank accounts)
If your bank account application is turned down because of an error on your ChexSystems report, the bank is required to provide you with the name and address of the credit bureau that issued the report. If you were denied a checking account, then ChexSystems will likely be listed as the bureau that issued the report. Then, you have 30 days to request a free copy from ChexSystems (although ChexSystems gives you a total of 60 days). ChexSystems must disclose to you all information in the report, its source, and who has recently received the report.
You have the right to have ChexSystems re-issue corrected reports to bankswho received reports within the last six months, or to employers who received one in the past two years.
Disclosure
Consumer reporting agencies like ChexSystems must provide you access to the information in your credit report, as well as identify those who have requested the information recently. There is usually a charge for each report, unless you have been denied credit or a bank account recently.
You are entitled to one free report a year if you certify in writing that: (1) you are unemployed and plan to look for a job within 60 days, (2) you are on welfare, or (3) your report is inaccurate due to fraud.
Limiting Access
In some situations, you may request that consumer reporting agencies do not distribute your name on lists used by creditors and insurers to make unsolicited offers of credit and insurance. Requests can be made by telephone or in writing by filling out a form available from each credit reporting agency. For telephone requests, call (888) 5 OPT OUT to be excluded from Experian, Equifax, and Trans Union. Telephone requests last for two years; written requests are permanent. You may not be able to limit the distribution of your ChexSystems report.
Consumers have the right to sue consumer reporting agencies (such as ChexSystems), users, and providers in state and federal court for violations of the Fair Credit Reporting Act.
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