Consumer complaint received 2024-01-15
Company: Fidelity National Information Services, Inc. (FNIS)
State: IN
Product: Credit reporting or other personal consumer reports
Sub-product: Credit reporting
Issue: Improper use of your report
Sub-issue: Reporting company used your report improperly

Complaint:
Chex system Inc has violated my privacy rights several times by collecting my information from the bank and reporting it to the credit bureau without my consent or authorization. I have written Chex System Inc and asked to opt out and they have continued to use my information and contact financial institutions sharing my information without my consent. I wrote them last year in XXXX asking them to opt out and they are still reporting violating my privacy rights Which is a violation of the Following 15 U.S. Code 6801 - Protection of nonpublic personal information a ) Privacy obligation policy It is the policy of theCongressthat eachfinancial institutionhas an affirmative and continuing obligation to respect the privacy of its customers and to protect the security and confidentiality of those customersnonpublic personal information. 

b ) Financial institutions safeguards In furtherance of the policy in subsection ( a ), each agency or authority described insection 6805 ( a ) of this title, other than the Bureau ofConsumerFinancial Protection, shall establish appropriate standards for thefinancial institutionssubject to their jurisdiction relating to administrative, technical, and physical safeguards ( 1 ) to insure the security and confidentiality of customer records and information ; ( 2 ) to protect against any anticipated threats or hazards to the security or integrity of such records ; and ( 3 ) to protect against unauthorized access to or use of such records or information which could result in substantial harm or inconvenience to any customer. 

15 U.S. Code 6802 - Obligations with respect to disclosures of personal information ( a ) Notice requirements Except as otherwise provided in this subchapter, afinancial institutionmay not, directly or through anyaffiliate, disclose to anonaffiliated third partyanynonpublic personal information, unless suchfinancial institutionprovides or has provided to theconsumera notice that complies withsection 6803 of this title. 

( b ) Opt out ( 1 ) In general Afinancial institutionmay not disclosenonpublic personal informationto anonaffiliated third partyunless ( A ) suchfinancial institutionclearly and conspicuously discloses to theconsumer, in writing or in electronic form or other form permitted by the regulations prescribed undersection 6804 of this title, that such information may be disclosed to such third party ; ( B ) theconsumeris given the opportunity, before the time that such information is initially disclosed, to direct that such information not be disclosed to such third party ; and ( C ) theconsumeris given an explanation of how theconsumercan exercise that nondisclosure option.

( 2 ) Exception This subsection shall not prevent afinancial institutionfrom providingnonpublic personal informationto anonaffiliated third partyto perform services for or functions on behalf of thefinancial institution, including marketing of thefinancial institutions own products or services, or financial products or services offered pursuant tojoint agreementsbetween two or morefinancial institutionsthat comply with the requirements imposed by the regulations prescribed undersection 6804 of this title, if thefinancial institutionfully discloses the providing of such information and enters into a contractual agreement with the third party that requires the third party to maintain the confidentiality of such information. 
( c ) Limits on reuse of information Except as otherwise provided in this subchapter, anonaffiliated third partythat receives from afinancial institutionnonpublic personal informationunder this section shall not, directly or through anaffiliateof such receiving third party, disclose such information to any other person that is anonaffiliated third partyof both thefinancial institutionand such receiving third party, unless such disclosure would be lawful if made directly to such other person by thefinancial institution. 

16 CFR 313.7 - Form of opt out notice to consumers ; opt out methods.

* 313.7 Form of opt out notice to consumers ; opt out methods. 
( a ) ( 1 ) Form of opt out notice.Ifyouare required to provide an opt out notice under 313.10 ( a ), youmust provide a clear and conspicuous notice to each ofyourconsumers that accurately explains the right to opt out under that section. The notice must state : ( i ) Thatyoudisclose or reserve the right to disclosenonpublic personal informationaboutyourconsumer to anonaffiliated third party ; ( ii ) That the consumer has the right to opt out of that disclosure; and ( iii ) A reasonable means by which the consumer may exercise the opt out right.

( f ) Continuing right to opt out.A consumer may exercise the right to opt out at any time.

Privacy Act of 1974 31 CFR 29.518 - Reporting delinquent debts to credit bureaus.

29.518 Reportingdelinquentdebts to credit bureaus.

( a ) Notice.If adebtor 's response to the demand letter does not result in payment in full, payment byoffset, or payment in accordance with avoluntary repayment agreementor otherrepayment scheduleacceptable to theBenefits Administrator, and thedebtor 's rights under 29.512through 29.514 have been exhausted, theBenefits Administratormust report thedebtorto a credit bureau . In addition, adebtor 's failure to make subsequent payments in accordance with arepayment schedulemust result in a report to a credit bureau. Before making a report to a credit bureau, theBenefits Administratormust notify thedebtorin writing that ( 1 ) The payment is overdue ; ( 2 ) TheBenefits Administratorintends, after 60 days, to make a report as described inparagraph ( b ) of this section to a credit bureau ; ( 3 ) Thedebtor 's right to dispute the liability has been exhausted under 29.512through 29.514 ; and ( 4 ) Thedebtormay avoid having theBenefits Administratorreport thedebtorto a credit bureau by paying the debt in one lump sum or making payments current under arepayment schedule.

( b ) Report.If, after being sent the notice described inparagraph ( a ) of this section, thedebtordoes not pay the overpayment debt or make payments current under arepayment scheduleor fails to respond to the notice, and 60 days have elapsed since the notice was mailed, theBenefits Administratorwill report to a credit bureau that thedebtoris responsible for an unpaid debt and provide the following information : ( ( 1 ) Thedebtor 's name, address, taxpayer identification number, and any other information necessary to establish the identity of the individual ; ( 2 ) The amount, status, and history of the debt ; and ( 3 ) The fact that the debt arose in connection with the administration ofFederal Benefit Paymentsunder a District Retirement Fund.

( c ) Subsequent reports.TheBenefits Administratormust update its report to the credit bureau whenever it has knowledge of events that substantially change the status or the amount of the liability.

( d ) Other reporting of delinquent debts.Pursuant to31 CFR 901.4, delinquentoverpayment debts should be reported to theDepartment of Housing and Urban Development 's Credit Alert Interactive Voice Response System ( CAIVRS ).

( e ) Privacy Actconsiderations.Adelinquentdebt may not be reported under this section unless a notice issued pursuant to thePrivacy Act,5 U.S.C . 552a ( e ) ( 4 ), authorizes the disclosure of information about thedebtorto a credit bureau or CAIVRS.

15 U.S. Code 6805 - Enforcement a ) In general Subject to subtitle B of theConsumer Financial Protection Act of 2010 [ 12 U.S.C. 5511et seq. ], this subchapter and the regulations prescribed thereunder shall be enforced by the Bureau ofConsumerFinancial Protection, theFederal functional regulators, the State insurance authorities, and theFederal Trade Commissionwith respect tofinancial institutionsand other persons subject to their jurisdiction under applicable law, as follows : 16 CFR 433.2 - Preservation of consumers ' claims and defenses, unfair or deceptive acts or practices.

433.2 Preservation of consumers ' claims and defenses, unfair or deceptiveactsor practices.

In connection with any sale or lease of goods or services to consumers, in or affecting commerce as commerce is defined in theFederal Trade Commission Act, it is an unfair or deceptiveactor practice within the meaning of section 5 of thatActfor aseller, directly or indirectly, to : ( a ) Take or receive aconsumer credit contractwhich fails to contain the following provision in at least ten point, bold face, type : NOTICE ANY HOLDER OF THISCONSUMER CREDIT CONTRACTIS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THESELLEROF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

( b ) Accept, as full or partial payment for such sale or lease, the proceeds of anypurchase money loan ( aspurchase money loanis defined herein ), unless anyconsumer credit contractmade in connection with suchpurchase money loancontains the following provision in at least ten point, bold face, type : NOTICE ANY HOLDER OF THISCONSUMER CREDIT CONTRACTIS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THESELLEROF GOODS OR SERVICES OBTAINED WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

17 CFR 240.15c1-2 - Fraud and misrepresentation.

240.15c1-2 Fraud and misrepresentation.

( a ) The termmanipulative, deceptive, or other fraudulent device or contrivance, as used insection15 ( c ) ( 1 ) of the Act ( section 2,52 Stat. 1075 ; 15 U.S.C. 78o ( c ) ( 1 ), is hereby defined to include any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.

( b ) The termmanipulative, deceptive, or other fraudulent device or contrivance, as used insection15 ( c ) ( 1 ) of the Act, is hereby defined to include any untrue statement of amaterialfact and any omission to state amaterialfact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading, which statement or omission is made with knowledge or reasonable grounds to believe that it is untrue or misleading.

( c ) Thescopeof thissectionshall not be limited by any specific definitions of the term manipulative, deceptive, or other fraudulent device or contrivance contained in other rules adopted pursuant tosection15 ( c ) ( 1 ) of the act.

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