Consumer complaint received 2023-08-24
Company: Fidelity National Information Services, Inc. (FNIS)
State: NJ
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
I am writing to file a formal complaint against XXXX XXXX XXXX XXXX XXXX ( XXXX ) and ChexSystems regarding significant inaccuracies in my account information, which have resulted in unjust financial hardship and violations of federal and New Jersey state laws. These inaccuracies are in direct violation of the Fair Credit Reporting Act ( FCRA ), Fair Debt Collection Practices Act ( FDCPA ), Electronic Funds Transfer Act ( EFTA ), and the New Jersey Consumer Fraud Act ( NJ CFA ), including the respective subsections. 

Background : On XX/XX/2023, I closed my savings account with XXXX XXXX XXXX XXXX XXXX ( XXXX ). Subsequently, I attempted to open an account with another financial institution but was denied based on information provided by ChexSystems, which claimed I owed XXXX {$260.00}. These actions have significantly impacted my ability to access banking services and have caused substantial financial distress. 

Specific Allegations with Subsections : 1. Violations of Fair Credit Reporting Act ( FCRA ) : Subsection : 15 U.S.C. 1681e - Compliance procedures Details : ChexSystems inaccurately reported a debt of {$260.00} to the new financial institution, which led to the unjust denial of my application. This misreporting constitutes a clear violation of the FCRA. 
2. Violations of Fair Debt Collection Practices Act ( FDCPA ) : Subsection : 15 U.S.C. 1692 - Congressional findings and declaration of purpose Details : XXXX XXXX XXXX XXXX XXXX ( XXXX ) engaged in aggressive and unjust debt collection practices by pursuing a debt I do not owe. Such tactics are in violation of the FDCPA. 
3. Violations of Electronic Funds Transfer Act ( EFTA ) : Subsection : 15 U.S.C. 1693b - Regulations by the Board Details : XXXX failed to provide appropriate overdraft protection disclosures and allowed unauthorized transactions to deplete my account, which is a breach of EFTA.

4. Violations of New Jersey Consumer Fraud Act ( NJ CFA ) : Subsection : N.J.S.A. 56:8-2 - Prohibited practices Details : XXXXXXXX XXXX alleged misrepresentation of my financial obligations and ChexSystems ' reporting of false information may constitute violations of the New Jersey Consumer Fraud Act ( CFA ), which prohibits deceptive practices. 
Inaccuracies in Account Information : I want to emphasize the significant inaccuracies in my account information, which have caused immense distress : ChexSystems reported a debt of {$260.00}, even though my savings account with XXXX was closed on XX/XX/2023. This false reporting has unjustly impacted my ability to access financial services. 
Possible Violations of Systems and Procedures : 1. Account Closure Procedures : Explanation : When I closed my savings account with XXXX on XX/XX/2023, established account closure procedures should have been in place. These procedures typically involve verifying the account 's balance, ensuring that all pending transactions are accounted for, and documenting the closure appropriately. 

Possible Violation : If XXXX did not follow these standard account closure procedures, it could have led to discrepancies in the reported account balance and ultimately resulted in the inaccurate reporting of the debt to ChexSystems. 

2. Data Entry and Reporting Protocols : Explanation : Financial institutions are expected to have robust data entry and reporting protocols to ensure the accuracy of information transmitted to credit reporting agencies like ChexSystems. These protocols should include data validation checks, accuracy verification, and reconciliation processes. 

Possible Violation : If there were lapses or inadequacies in these data entry and reporting protocols at XXXX, it could have resulted in the incorrect data being transmitted to ChexSystems. For instance, errors during data entry or the absence of validation checks may have contributed to the inaccurate reporting. 

3. Customer Verification Procedures : Explanation : Before reporting a debt to a credit reporting agency, financial institutions typically verify the customer 's identity and the details of the debt. This verification process ensures that the debt is associated with the correct customer and is accurate. 

Possible Violation : If XXXX failed to conduct thorough customer verification before reporting the debt, it might have led to the reporting of a debt that did not belong to you. This failure to verify customer information could constitute a violation of established procedures. 

4. Communication and Documentation Practices : Explanation : Effective communication and documentation are critical in the financial industry. There should be clear records of account closures, debt validations, and communication between relevant departments to prevent errors and inaccuracies. 

Possible Violation : If there were gaps in communication or documentation practices within XXXX, it could have contributed to the inaccurate reporting. For example, failure to document the closure of your savings account or to communicate effectively between departments could lead to discrepancies in reported account information. 

5. Verification of Debt Ownership : Explanation : Financial institutions must verify that a debt is legitimately owed by the customer before reporting it to credit agencies. This verification process includes confirming the accuracy of the debt 's details and ownership. 

Possible Violation : If XXXX reported the debt to ChexSystems without proper validation of debt ownership, it might have resulted in the reporting of an erroneous debt. Failure to adhere to this verification process could be a violation of established procedures. 

Addressing these potential violations in systems and procedures is essential to maintain the integrity of credit reporting and ensure accurate financial information for consumers. It is crucial for financial institutions to adhere to established protocols and best practices to prevent such inaccuracies and protect consumers ' financial rights.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation