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If a credit bureau or other information reporting agency creates an account on your credit report, your financial standing can take a hit. Depending on your account history, you may be denied a banking account or find it difficult to borrow from banks and credit unions in the future. 

Hiring a knowledgeable consumer protection lawyer can help you clear up any incorrect items in your credit report. If a reporting agency like ChexSystems or debt collector acts illegally, the consumer protection attorneys at Agruss Law Firm can help you hold the offending parties accountable.

What Are Consumer Information Reporting Agencies?

Consumer information reporting agencies collect and maintain information about consumers’ credit history, employment history, and other financial information. These organizations sell this information to businesses, credit bureaus, and other organizations that use it to make decisions about extending credit, hiring employees, or approving credit cards or deposit accounts. 

The three main consumer reporting agencies in the United States are Equifax, Experian, and TransUnion. Each of these organizations has a different database of information about consumers, so businesses often check all three when making decisions about a consumer. However, businesses can only access this information if the consumer gives them explicit permission. 

What Is ChexSystems, Inc.?

ChexSystems is a consumer reporting agency that collects information about consumers’ checking and savings accounts. The reporting agency sells the information to businesses seeking to assess and mitigate the risk of opening new accounts. 

According to the ChexSystems website, ChexSystems assigns a ChexSystems consumer score based on a consumer’s ChexSystems record. ChexSystems has its headquarters in Minneapolis, Minnesota, and has a 24-hour IVR system available for callers at (800) 428-9623.

What Are Consumers Saying About ChexSystems, Inc.?

ChexSystems has a Better Business Bureau profile where an average of 6 consumer reviews have given the agency a 1 out of 5-star rating. The company’s profile is not BBB-accredited, and there are 89 complaints posted by consumers.

Most consumer complaints are from people trying to remove an incorrect or outdated item from their credit report. Other complaints deal with consumers’ inability to open a bank account due to negative information added by ChexSystems. Consumers report difficulty in contacting ChexSystems and obtaining help regarding their issues.

What Consumer Reporting Protections Do Consumers have?

There are several different consumer reporting protections for consumers dealing with the improper use of their financial information. 

Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act is a law that regulates the way credit reporting agencies operate. The law sets forth various rights for consumers, including the right to know what is in their credit report, the right to dispute inaccurate information, and the right to correct errors. 

The law also requires credit reporting agencies to take steps to ensure that the information they collect is accurate and up-to-date. If you dispute an item in your credit report, these agencies must examine your dispute within 30 days. As a result, the Fair Credit Reporting Act helps protect consumers from unfair or misleading credit reporting practices.

Gramm-Leach-Bliley Act (GLBA)

The Gramm-Leach-Bliley Act was enacted in 1999 and amended several existing laws governing the banking and securities industries. The goal of the GLBA was to provide a more comprehensive framework for regulating the financial services industry and protecting consumers’ personal financial information. 

The GLBA requires financial institutions to disclose their information-sharing practices to consumers and gives consumers the right to opt out of having their personal information shared with third parties. Furthermore, the GLBA established procedures for resolving disputes between consumers and financial institutions.

Free Credit Report Access

In addition to legal protections, consumers have the right to access a free copy of their credit report. Previously, consumers could access a free credit report once per week due to Covid-19 restrictions; however, these protections ended in April of 2022.  Now, you can get one free report every 12 months from each reporting agency to monitor your credit. 

How Can a Consumer Protection Attorney Help?

When it comes to your credit score, accuracy is everything. Consumer reporting agencies are required by law to maintain accurate records, but sometimes errors do occur. If you believe there is incorrect information in your credit report, a consumer protection attorney can help. 

A consumer protection lawyer can review your report and identify any errors. They can then work with the credit agency to have the information corrected. In some cases, they may also be able to help you file a lawsuit if the credit agency has acted illegally. By working with a reliable attorney, you can ensure that your credit report is accurate and that your rights are protected.

Stop Unfair Practices by ChexSystems, Inc.

Consumers should not have to accept the negligent conduct of ChexSystems or other credit reporting agencies. A mistaken or intentionally false record on your credit report can damage your creditworthiness and ability to get a job.

Agruss Law Firm helps consumers deal with irresponsible reporting agencies. Our knowledgeable attorneys can take legal action to hold ChexSystems, Inc. accountable for federal law violations.

The FCRA allows you to sue a credit reporting agency if it violates your rights. For example, you can sue if the agency uses inaccurate information from your credit report or if it refuses to correct mistakes in your report. You can also sue if the agency denies you access to your credit report.

Contact our legal team today for a free, no-obligation consultation to share the details of your case and break free from debt collection harassment.

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