The bank charged off a savings account in 2023. The customer deposited a Cashier's check, transferred the money to their checking and spent the money on random items. The check was returned and left a negative balance that the customer did not pay, and the account was charged off and reported to ChexSystems. He is now disputing our Chexsystems submission because he was a victim of a work from home scam.

Does that qualify to remove our submission? Want to make sure I'm not missing anything before I respond.

Customer voluntarily deposited a check. Customer spent money that was deposited before the check was returned and deduction was made. There were no unauthorized transactions. Your agreement requires them to be responsible for any overdraft, including one created by returned deposited items. They didn't pay. The fact that someone (not the bank) fooled them into making the deposit doesn't change the fact that they didn't pay.

I agree with rainman's analysis. However, I would add that even if the customer now came back and brought the balance to zero then the reporting in ChexSystems should only be changed from unpaid to paid. It should not be removed as it happened.

Where was the customer in all of this when (assumably) you were in the collections process? Shouldn't they have, at that time, made the dispute? It sounds like they're only now claiming victim because they realize how this has affected their credit, or ability to obtain a new account elsewhere.

Just curious: how long were they a customer prior to the check being deposited? Was this relationship created solely for the purpose of the scam?