Consumer complaint received 2016-03-03
Company: First Data Corporation
State: NC
Product: Credit reporting
Issue: Incorrect information on credit report
Sub-issue: Account status

Complaint:
My complaint is with Telecheck and TRS ( their " debt recovery '' team ). On XXXX/XXXX/2016, XXXX checks were returned to XXXX different grocery stores for NSF due to another merchant making an unauthorized transaction. I put money in my account immediately and both grocery stores resubmitted the checks and they cleared on XXXX/XXXX/2016 with no issue. I attempted to purchase groceries today but my check was declined. I called the number and was routed to the Debt Collection Service that tried to get me to pay the amount of one of the returned checks plus a XXXX NSF fee. I informed them that the check was resubmitted and cleared my bank nearly a week ago. I was told that I would not have a check approved at any merchant that uses Telecheck ( which means basically ANY MERCHANT ) for at least 7-10 BUSINESS DAYS ( in other words -- XXXX full weeks ). They also continued to press me to pay the " debt '' that I supposedly owed ( even though it had already been paid by my bank ). I received NO NOTICE from either grocery store or Telecheck that there was an outstanding debt ( which there was n't because both checks were honored when resubmitted ). I was not charged any NSF fees by the actual merchants that accepted the checks ( indicating to me that since the checks were honored and paid, that was the end of the matter ). However, after speaking to XXXX levels of employees at Telecheck, they refused to correct the erroneous information regarding an " outstanding debt '' and the refuse to approve me for writing any additional checks because they say I have an " outstanding debt ''. I faxed a copy of my check transaction record to Telecheck to prove to them that the check was paid and cleared and asked for them to correct my record and allow my to start writing checks again. They refused and said that I would have to wait for their systems to " automatically update '' which could take 7-10 BUSINESS DAYS. In addition, Telecheck would not promise that any additional checks would be approved EVEN IF the debt was paid due the fact that there had been a debt ( according to them ) in the first place. Due to Telecheck 's inadequate processes and procedures, I am now effectively barred from writing checks to any merchant until such time as Telecheck decides I should be allowed to write checks again. However, Telecheck 's own websites state that they will decline checks due to insufficient history causing a " catch-22 '' ... you ca n't write checks and get them approved by Telecheck because Telecheck wo n't approve you and you wo n't be approved by Telecheck until you have written and had checks approved. Furthermore, there is NO WAY of knowing whether a check will be approved until you get to the counter and they attempt to run your check through and Telecheck issues its decision ... Telecheck is essentially forces consumers into playing " Russian Roulette '' if they want to do business with a merchant and write a check. With credit cards and other financial instruments, you know ahead of time whether the credit/debit card will be accepted because you have a well-defined credit limit. If you are under your credit limit, your credit card is accepted. However, due to the way Telecheck operates, you have no way of knowing whether your check will be accepted ahead of time even if you have plenty of money in your bank account to cover the check.

Company response to consumer: Closed with explanation