Target reported me to ChexSystems

[Ready To Fight]

Hello everyone. I am I joined the board because I wanted to make sure that I handled this situation properly.

Target had an issue with their RedCards and how they do not use them properly as debit cards (debit cards only allow you to take money out if money is in the account; with the Target RedCard no matter if you have the money or not it will allow the transaction and take the money out of your account later), causing overdrafts and NSF fees.

Long story short, I used the card and they messed up my account, but they were paid (I was also charged fees by my bank). However, Target reported me to CheckSystems, claiming they were not paid. I didn’t know this until I tried to cash a check and they denied me because of it (I wanted to put cash into my account instead of waiting on the check to clear since it was 4 figures; I ended up depositing it). I went to my directly to my bank and they pulled everything showing that Target got paid in full. They have no reason to lie on my behalf and their printouts are clear that all payments were made to Target.

If I filed this in District Court, what would I sue them for besides the overdraft fees and would reporting me to ChexSystems be defamation? I'm sure I have them dead to rights, but I am not sure on exactly what. Thank you in advance for your assistance.

[WhoCares1000]

What you have here is a Fair Credit Reporting Act (FCRA) case. There are some hoops you need to go through first before you can sue anyone according to the law.

The first thing I would do is get the bank records authenticated. You need an affidavit from the bank stating that these are the true and correct records of the bank. While doing that, you need to file a dispute with Chexsystems stating that Target was paid in full and the entry was in error. Under the FCRA, Chexsystems must investigate your dispute and get back to you in 30 days. The CFPB is enforcing that timeline again. You should probably send a copy of the bank notes (keep your copies) to aid the investigation.

If Chexsystems comes back verified, then you will have a case but it would be in Federal Court so most likely you will need a lawyer because there are strict rules in Federal Court. Most consumer protection attorneys will take this on for free if the case is indeed as you said above as the law allows for the loser to pay the winners attorney fees. More likely than not, Chexsystems and/or Target will settle as this will a nuisance case to them. I would however read your Red Card contract carefully. If there is an arbitration clause, Target might force you into arbitration. We can help you with that too if the need should arise.

[Ready To Fight]

6 hours ago, WhoCares1000 said:

What you have here is a Fair Credit Reporting Act (FCRA) case. There are some hoops you need to go through first before you can sue anyone according to the law.

The first thing I would do is get the bank records authenticated. You need an affidavit from the bank stating that these are the true and correct records of the bank. While doing that, you need to file a dispute with Chexsystems stating that Target was paid in full and the entry was in error. Under the FCRA, Chexsystems must investigate your dispute and get back to you in 30 days. The CFPB is enforcing that timeline again. You should probably send a copy of the bank notes (keep your copies) to aid the investigation.

If Chexsystems comes back verified, then you will have a case but it would be in Federal Court so most likely you will need a lawyer because there are strict rules in Federal Court. Most consumer protection attorneys will take this on for free if the case is indeed as you said above as the law allows for the loser to pay the winners attorney fees. More likely than not, Chexsystems and/or Target will settle as this will a nuisance case to them. I would however read your Red Card contract carefully. If there is an arbitration clause, Target might force you into arbitration. We can help you with that too if the need should arise.

Thank you for the response and the suggestions. I will let you know what happens...unless you know... I can't.

[nobk4me]

I would agree that you should consult a consumer attorney.  You probably have a good case.  (And thanks for the info about Target's Red Card.  That's something I will avoid!)

I suspect you are not the only person in this situation.  I think there is a potential for a class action lawsuit here.  So you might want to seek out lawyers who specialize in class actions.

[Ready To Fight]

There was already a class action lawsuit settlement. I didn't know about it since I have been very ill until recently.

[WhoCares1000]

50 minutes ago, Ready To Fight said:

There was already a class action lawsuit settlement. I didn't know about it since I have been very ill until recently.

If there was already a class action and it includes the time frame in which you experienced harm, then you might have opted out of being able to sue Target. I would check the class action documents to ensure that you have not opted out.

If Target is still acting in a bad manner after the class action suit, I would suggest contacting Federal and State regulators and let them know that Target would rather pay out lawsuit damages than fix the issue.

[Ready To Fight]

1 minute ago, WhoCares1000 said:

If there was already a class action and it includes the time frame in which you experienced harm, then you might have opted out of being able to sue Target. I would check the class action documents to ensure that you have not opted out.

If Target is still acting in a bad manner after the class action suit, I would suggest contacting Federal and State regulators and let them know that Target would rather pay out lawsuit damages than fix the issue.

I'll look into it. I don't know how I could opt out without knowing about it. I can prove they were paid when they reported me to ChexSystems, so at least I have that.

[WhoCares1000]

If the class action commenced before you had your issue with Redcard, then you are not a member of the class. The only members can be those who ran into the issues that were fact in the class action prior to the commencement date of the action. That means if your issues are more recent, you have a separate cause of action from the class action case and can file a case. You will have to prove that to a judge however should Target et. al. try to dismiss on the class action grounds.

Again, talking to a consumer attorney and bringing up all the facts in the case, including the class action, will get a better response than us lowly internet users can provide. I would at least challenge the trade line at Chexsystems right now because it is something easy to do and time is of the essence for a court action. You don't need an attorney for that.

[Ready To Fight]

15 hours ago, WhoCares1000 said:

If the class action commenced before you had your issue with Redcard, then you are not a member of the class. The only members can be those who ran into the issues that were fact in the class action prior to the commencement date of the action. That means if your issues are more recent, you have a separate cause of action from the class action case and can file a case. You will have to prove that to a judge however should Target et. al. try to dismiss on the class action grounds.

Again, talking to a consumer attorney and bringing up all the facts in the case, including the class action, will get a better response than us lowly internet users can provide. I would at least challenge the trade line at Chexsystems right now because it is something easy to do and time is of the essence for a court action. You don't need an attorney for that.

Thank you.