Opening A Checking Account While On The Chexsystems

The ChexSystems provides deposit account verification services to its financial institution members to help them to identify account applicants that may have a history of account mishandling. The service sounds useful, and it is for banks and financial institutions. It helps them be alert cases of fraud and other abuses. Those who routinely and intentionally write bad checks should have their criminal activities recorded in ChexSystems. However, not all negative activities are cases of fraud or intentional misuse. Many consumers have written at least one check that has bounced and if you had a checking account closed in the negative balance and did not pay the negative balance in time, the bank will have reported the consumer to the ChexSystems. Every report submitted to the ChexSystems remains on the files for five years, unless the bank or credit union that filed the report with them has it removed or the ChexSystems becomes obligated to remove the file under law. However, if a collection amount is reported is paid, they is obligated to mark the account as being paid. If you are reported to the ChexSystems make sure not to close any other checking accounts you may have. Pay all of the overdraft fees as soon as possible. Make good on the personal check you have wrote and are out. Once you have paid the overdraft fees and satisfied everyone that had received a bounced check, then make sure to have a explanation of the matter inserted into your ChexSystems file. Just because you are on the ChexSystems, there are still alternatives to getting a checking account from a bank. Sometimes this can be overlooked by the bank officer so you may be able to open a new account. There are also many banks On-Line that offer second chance checking accounts to people who has been reported to the ChexSystems. By: twv706 Article Directory: http://www.articledashboard.com Thomas Vargo writes several articles for Consumerbadcreditguide.com to help people that have no or bad credit build a credit history. If you want more information on how to obtain credit with bad or no credit for different purposes, visit his consumer guide on bad credit.

Technorati Tags: Add new tag, checking, checking account on chexsystems, checking account without chexsystems, chexsystems checking account, chexsystems checking accounts, new checking account, no chexsystems checking account, no chexx systems, non chexsystems checking account

What is chexsystem?
Don't have a checking account? Get one! Click Here
A Second Chance Checking Account is necessary if you have a record on ChexSystems or having difficulty opening a new checking account. Unfortunately, if you are on ChexSystems you are practically blacklisted from over 80% of all banks and credit unions throughout the country. The good news is in most cases, based on a simple approach, you can be removed from ChexSystems and/or secure a new second chance checking bank account within a short time frame.

How to Obtain a Non ChexSystems Bank Account Without Being Scammed

Non chexsystems banks are few and far between, but they are out there. Online banks are nearly as convenient as a local bank, especially if you have Direct Deposit. With most online non chexsystems banks, you also receive a VISA or MasterCard ATM/Check Card. These debit cards can be used to get cash from ATMs and to make purchases. You can even avoid ATM transaction fees by using the card to get cash back at U.S. Post Offices, grocery stores, and many other retailers.

What to do if your reported to the Chex System?

The primary difference between a debit card account and a checking account at your local bank is that with a debit card account you are not issued a set of paper checks. Instead, with a debit card account, you will write your checks, and pay your bills, electronically using a bill payment service.

Where can I get a checking account if I am on the Chex System?

There are several banks On-Line that claim to give checking accounts to individuals who are on the Chex System, but none of these were ever heard of by our staff and therefore had no creditability, so we did not list them on this site. We are however, heard of four reputable banks that include U.S. Bank (50/50 chance of approval), Bank Of America (has a high success rate to get approved, but make sure you apply On-Line.),WaMu (Washington Mutual has a 50/50 chance to get approved.).

Where can I get a free copy of my Chex System report?

You can decide to live without a bank account, and pay the extra expenses and deal with the inconvenience of using Check Cashing stores, Money Orders, and using cash for most transactions. You can try to get off the ChexSystems list (which is not impossible, but can be confusing and difficult for most people). You can search around for a bank that doesn’t use ChexSystems and that will allow you to open an account even though you are on the ChexSystems list.

How consumer report about ChexSystems?

Each report submitted to Chex System remains on their files for five years, unless the bank or credit union that filed the report requests its removal or Chex System becomes obligated to remove it under applicable law.

How to get off ChexSystems?

Obviously the best scenario is if your name and record were completely deleted from their database. Depending on individual situations, for some people this may not be as difficult as you may think.

Who is chexsystems?

A retail grocer who was tired of getting bad checks, came up with the ideal, and originally created what is now know as ChexSystems. He recognized business institutions needed a way to share information to help stop account abuse and fraud.

By: Lewis Lee
Article Directory: http://www.articledashboard.comcan be a daunting task. That’s why we put together this

Technorati Tags: 2nd chance checking accounts, checking accounts without chexsystems, non chexx bank

‘…I’m sorry, my bank cannot help you. You’re listed in ChexSystems…’My wife and I just moved from South Bend, Indiana to Indianapolis. We needed a checking account. We both wanted a fresh start after bankruptcy, and opening a new checking account with a new bank seemed like a good place to start.I chose to go with a national bank and found a branch on Fall Creek Road in Indianapolis near Geist Reservoir. I was nervous.

The thing about filing bankruptcy that most people have a hard time understanding (unless they’ve gone through it themselves) is the feeling of inferiority. Each new credit application can cause anxiety.I’ll share a quote that pulled me through this stressful time in my life. It’s from Eleanor Roosevelt. She said…’No one can make you feel inferior without your consent. ‘I love that quote.So I walked into the bank branch with the attitude, ‘Everyone knows I filed bankruptcyso what?’

I asked to be directed to the person who could open a new checking account for me.The lady at the desk who began to talk to me about opening an account was really nice…until she found my name in ChexSystems.Then everything changed…’…I’m sorry, my bank cannot help you. You’re listed in ChexSystems… ‘That was that.I walked out of the bank without a checking account because of a company called ChexSystems. What is ChexSystems?ChexSystems is a checking account verification company based in Woodbury, Minnesota. Banks and credit unions use them when people apply to open a checking account. It’s essentially a consumer reporting agency designed to check if people have a history of writing bad checks.

If you’re listed in ChexSystems you’re usually not allowed to open a checking account with that bank.ChexSystems is the largest player in the check verification industry. However, there are other companies that provide similar services, such as TeleCheck and Decision Power Insight from Equifaxreg;.I’ll focus on ChexSystems since they’re the largest. Are You On The ChexSystems Blacklist?There are several actions that can get you on ChexSystems’ blacklist…- Fraudulent handling of a checking account- Bouncing a check resulting in non-sufficient funds (NSF)- Overdrafting your account while using your ATM or debit card- Having your account ‘closed for cause’ One of the most common ways to get listed in ChexSystems happens when you move or change banks. Because check and debit card charges don’t show up on your account as soon as you make them, you can get hit with NSF charges after you thought you closed your old bank account.

The best way to avoid this problem is to leave your old account open until you are sure all your transactions have cleared. Once you’re listed in a check verification service such as ChexSystemsit’s best to just pay what’s due. Also, make sure you request a letter on that bank’s letterhead stating that all debts have been paid.Now, one would think that if you included an unpaid check in your bankruptcy petition that your debt would be erasedI personally didn’t find that to be the case.I learned that entries remain on your ChexSystems report (even if they’re paid off) for five years. So if you think you’re safe because you paid the check or included it in your bankruptcy, you may not be.

This was my ChexSystems experience. Yours may be different. If you have a ChexSystems story to share go here to tell me about it. I’ll compile all the information and share it with everyone in a future issue.How Do You Know If You’re Listed In ChexSystems?You’ll either be unable to open a new bank checking account or you’ll have a difficult time getting stores to accept your checks.You see, the same corporation that owns ChexSystems also owns SCAN, the company that verifies checks at places such as Wal-Mart or your local grocery store.

When you write a check at a store, and they put it through that little machine at the register, they’re looking to see if you’re listed in either SCAN’s or ChexSystems’ databases. If you are, they usually won’t accept your check.If they do accept your check, then ChexSystems has guaranteed that it will be honored by your bank. If it bounces like a rubber ball, then ChexSystems will pay the merchant the amount of the check out of their pocket…then you not only have to pay your bank’s NSF fee, but ChexSystems’ as well…which can get expensive.The best way to know if you’re in ChexSystems is to review your ChexSystems report. Since they’re a consumer reporting agency, ChexSystems has to follow the Fair Credit Reporting Act (FCRA) and the new Fair and Accurate Credit Transactions Act (FACTA). This means you’re entitled to one free copy of your ChexSystems report every year.What I Figured Out By AccidentAfter my unexpected rejection from the bank on Fall Creek Road, I needed a few days to regroup.My wife and I shared a car at the time, and she had a job interview at a RE/MAX real estate office near Geist Reservoir.

As I waited for her, I noticed three new banks just a stone’s throw from each other. Literally, one on each corner of the road. What were they thinking? None of the branches looked busy. My guess was they were stumbling over each other to win new bank customers…even ones listed in ChexSystems. So I took a chance.I locked the car, hoping Michele wouldn’t return right away. Then I picked the bank that looked the newest. I went in and asked to be directed to the person who could open a new checking account for me.I sat down in the branch manager’s office. And as he was going through the routine pleasantries, I noticed him reaching in his drawer for a new starter checking account kit.I then spoke up and asked, ‘But what if I’m listed with ChexSystems?’His answer shocked me.’We don’t use CheckSystems. I’d be happy to open an account for you.’And so he did.I returned to the car, excited to share my discovery with Michele. We had a checking account from a bank!What I hope you glean from this is that not all banks or credit unions use ChexSystems. It may seem like it in some cities, but they absolutely are not used by 100% of financial institutions.

How To Get a Checking Account If You’re Listed In ChexSystems

The best way is to find a bank that doesn’t use ChexSystems to verify new accounts.Here’s how to go about it… 1. Start by making a list of all the bank branches in your area. You’ll do better if you stick with the smaller, local banks and avoid the big banks. 2. Call and ask to speak to the branch manager. 3. Inquire about their different checking account programs. (How much money do you need to start an account, how long does it take, can you do it online, what check number will they start you out at, etc.?) 4. Then ask how they verify new accounts. Do they review your credit report? If so, which credit report, and will the credit inquiry lower your credit scores? (Of course, you know the answer to this question is yesbut let’s see how many tell you the truth.) Or, do they use a check verification service? If so, which one?If the branch manager tells you they don’t use ChexSystemsyou’ve got a winner! Be sure to write down the person’s name and make arrangements to stop in and open an account. If the branch manager tells you they use ChexSystems…here’s what to say next…’…Darn it. I’m listed with ChexSystems and they’re a bear to deal with to get something resolved. Is there anything I can do to get an account with you?’If they say, ‘No,’ ask them…’Do you happen to know of a local bank that doesn’t use ChexSystems or a program that can help me open a new bank account?

‘Sometimes you can speed up your search by asking for help. It will take you only a few seconds to ask, but the right answer may save you hours of research.A New Trend DevelopingI’ve noticed more and more banks are reviewing credit reports in lieu of using check verification services. Sometimes they even do both! I wouldn’t open an account with a bank that does thismainly because their credit inquiry will lower my credit scores. So keep looking.Banks That Really CareSome banks are willing to give even bankrupt people a break. If you’re searching for a new bank and you think you may have trouble getting a checking account, ask if they have some kind of ’second chance’ or ‘fresh start’ program.

A lot of banks have probationary programs that offer limited services for a set amount of time (usually six months). If you really need a checking account, these programs can be a lifesaver.There are also two specific services that a lot of banks and credit unions are becoming affiliated with. Basically, these programs allow you to take a course on how to manage a checking account. And when you complete the course, you’ll be given a certificate to open a bank checking account with a participating bank or credit union.The two programs are called Get Checking and InBalance. Get Checking is geared more toward banks, while InBalance is more for credit unions.So don’t be afraid to ask. Remember what Eleanor Roosevelt said…’No one can make you feel inferior without your consent.’

By: Stephen Snyder

Article Directory: http://www.articledashboard.com

Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that helps people recover after bankruptcy. He has helped thousands of people obtain a loan after bankruptcy with a fair interest rate.

If you would like to open a checking account today here’s a bank that will help you…click here for more information

Technorati Tags: chexsystems bank, chexx help, find a bank on chexsystems, keywords, no chexx, open a bank account, pre paid debit cards

Opening A Checking Account While On The Chexsystems

The ChexSystems provides deposit account verification services to its financial institution members to help them to identify account applicants that may have a history of account mishandling. The service sounds useful, and it is for banks and financial institutions. It helps them be alert cases of fraud and other abuses. Those who routinely and intentionally write bad checks should have their criminal activities recorded in ChexSystems. However, not all negative activities are cases of fraud or

intentional misuse. Many consumers have written at least one check that has bounced and if you had a checking account closed in the negative balance and did not pay the negative balance in time, the bank will have reported the consumer to the ChexSystems.

Every report submitted to the ChexSystems remains on the files for five years, unless the bank or credit union that filed the report with them has it removed or the ChexSystems becomes obligated to remove the file under law. However, if a collection amount is reported is paid, they is obligated to mark the account as being paid.

If you are reported to the ChexSystems make sure not to close any other checking accounts you may have. Pay all of the overdraft fees as soon as possible. Make good on the personal check you have wrote and are out. Once you have paid the overdraft fees and satisfied everyone that had received a bounced check, then make sure to have a explanation of the matter inserted into your ChexSystems file.

Just because you are on the ChexSystems, there are still alternatives to getting a checking account from a bank. Sometimes this can be overlooked by the bank officer so you may be able to open a new account. There are also many banks On-Line that offer second chance checking accounts to people who has been reported to the ChexSystems.By: twv706

Article Directory: http://www.articledashboard.com

Thomas Vargo writes several articles for Consumerbadcreditguide.com to help people that have no or bad credit build a credit history. If you want more information on how to obtain credit with bad or no credit for different purposes, visit his consumer guide on bad credit.

Check your “ChexSystems” report
Chex Systems is subject to the Fair Credit Reporting Act and derogatory and inaccurate info can be challenged. Banks use ChexSystems to see if you have bounced any checks – if so, your

How to Repair Your Chex Systems Report After a Bankruptcy Discharge
Many merchants use check reporting services like Chex Systems. Another check reporting service I see frequently is called Telecheck. These companies are credit reporting agencies just like Equ.

Non ChexSystems Bank Tip – Washington Mutual Bank
Here’s a tip from one of our readers about Washington Mutual (and how they deal with people on chexsystems).

ChexSystems: Who They Are and How it Affects You | Kwik Fit Insurance
ChexSystems is a company that maintains a subscriber membership service used in the banking industry.

Technorati Tags: bank, chexsystems, no chexsystems, non chexsystems checking account

Opening A Checking Account While On The Chexsystems

The ChexSystems provides deposit account verification services to its financial institution members to help them to identify account applicants that may have a history of account mishandling. The service sounds useful, and it is for banks and financial institutions. It helps them be alert cases of fraud and other abuses. Those who routinely and intentionally write bad checks should have their criminal activities recorded in ChexSystems. However, not all negative activities are cases of fraud or intentional misuse. Many consumers have written at least one check that has bounced and if you had a checking account closed in the negative balance and did not pay the negative balance in time, the bank will have reported the consumer to the ChexSystems.

Every report submitted to the ChexSystems remains on the files for five years, unless the bank or credit union that filed the report with them has it removed or the ChexSystems becomes obligated to remove the file under law. However, if a collection amount is reported is paid, they is obligated to mark the account as being paid.

If you are reported to the ChexSystems make sure not to close any other checking accounts you may have. Pay all of the overdraft fees as soon as possible. Make good on the personal check you have wrote and are out. Once you have paid the overdraft fees and satisfied everyone that had received a bounced check, then make sure to have a explanation of the matter inserted into your ChexSystems file.

Just because you are on the ChexSystems, there are still alternatives to getting a checking account from a bank. Sometimes this can be overlooked by the bank officer so you may be able to open a new account. There are also many banks On-Line that offer second chance checking accounts to people who has been reported to the ChexSystems.

Open A New Checking Account In 10 Minutes …Click Here

By: twv706

Article Directory: http://www.articledashboard.com

Thomas Vargo writes several articles for Consumerbadcreditguide.com to help people that have no or bad credit build a credit history. If you want more information on how to obtain credit with bad or no credit for different purposes, visit his consumer guide on bad credit.

Technorati Tags: keywords

‘  …I’m sorry, my bank cannot help you. You’re listed in ChexSystems…’My wife and I just moved from South Bend, Indiana to Indianapolis. We needed a checking account. We both wanted a fresh start after bankruptcy, and opening a new checking account with a new bank seemed like a good place to start.I chose to go with a national bank and found a branch on Fall Creek Road in Indianapolis near Geist Reservoir.

I was nervous.The thing about filing bankruptcy that most people have a hard time understanding (unless they’ve gone through it themselves) is the feeling of inferiority. Each new credit application can cause anxiety.I’ll share a quote that pulled me through this stressful time in my life. It’s from Eleanor Roosevelt. She said…’No one can make you feel inferior without your consent.’I love that quote.So I walked into the bank branch with the attitude, ‘Everyone knows I filed bankruptcyso what?’ I asked to be directed to the person who could open a new checking account for me.

      The lady at the desk who began to talk to me about opening an account was really nice…until she found my name in ChexSystems.Then everything changed…’…I’m sorry, my bank cannot help you. You’re listed in ChexSystems…’That was that.I walked out of the bank without a checking account because of a company called ChexSystems. What is ChexSystems?ChexSystems is a checking account verification company based in Woodbury, Minnesota. Banks and credit unions use them when people apply to open a checking account.

     It’s essentially a consumer reporting agency designed to check if people have a history of writing bad checks. If you’re listed in ChexSystems you’re usually not allowed to open a checking account with that bank.ChexSystems is the largest player in the check verification industry. However, there are other companies that provide similar services, such as TeleCheck and Decision Power Insight from Equifaxreg;.

     I’ll focus on ChexSystems since they’re the largest.Are You On The ChexSystems Blacklist?There are several actions that can get you on ChexSystems’ blacklist…- Fraudulent handling of a checking account- Bouncing a check resulting in non-sufficient funds (NSF)- Overdrafting your account while using your ATM or debit card- Having your account ‘closed for cause’ One of the most common ways to get listed in ChexSystems happens when you move or change banks. 

     Because check and debit card charges don’t show up on your account as soon as you make them, you can get hit with NSF charges after you thought you closed your old bank account.The best way to avoid this problem is to leave your old account open until you are sure all your transactions have cleared.Once you’re listed in a check verification service such as ChexSystemsit’s best to just pay what’s due. Also, make sure you request a letter on that bank’s letterhead stating that all debts have been paid.

    Now, one would think that if you included an unpaid check in your bankruptcy petition that your debt would be erasedI personally didn’t find that to be the case.I learned that entries remain on your ChexSystems report (even if they’re paid off) for five years. So if you think you’re safe because you paid the check or included it in your bankruptcy, you may not be.This was my ChexSystems experience. Yours may be different. If you have a ChexSystems story to share go here to tell me about it. I’ll compile all the information and share it with everyone in a future issue.How Do You Know If You’re Listed In ChexSystems?

    You’ll either be unable to open a new bank checking account or you’ll have a difficult time getting stores to accept your checks.You see, the same corporation that owns ChexSystems also owns SCAN, the company that verifies checks at places such as Wal-Mart or your local grocery store.When you write a check at a store, and they put it through that little machine at the register, they’re looking to see if you’re listed in either SCAN’s or ChexSystems’ databases. If you are, they usually won’t accept your check.If they do accept your check, then ChexSystems has guaranteed that it will be honored by your bank.

    If it bounces like a rubber ball, then ChexSystems will pay the merchant the amount of the check out of their pocket…then you not only have to pay your bank’s NSF fee, but ChexSystems’ as well…which can get expensive.The best way to know if you’re in ChexSystems is to review your ChexSystems report. Since they’re a consumer reporting agency, ChexSystems has to follow the Fair Credit Reporting Act (FCRA) and the new Fair and Accurate Credit Transactions Act (FACTA).

    This means you’re entitled to one free copy of your ChexSystems report every year.What I Figured Out By AccidentAfter my unexpected rejection from the bank on Fall Creek Road, I needed a few days to regroup.My wife and I shared a car at the time, and she had a job interview at a RE/MAX real estate office near Geist Reservoir. As I waited for her, I noticed three new banks just a stone’s throw from each other. Literally, one on each corner of the road. What were they thinking? None of the branches looked busy. My guess was they were stumbling over each other to win new bank customers…even ones listed in ChexSystems.So I took a chance.I locked the car, hoping Michele wouldn’t return right away. Then I picked the bank that looked the newest. I went in and asked to be directed to the person who could open a new checking account for me.

    I sat down in the branch manager’s office. And as he was going through the routine pleasantries, I noticed him reaching in his drawer for a new starter checking account kit.I then spoke up and asked, ‘But what if I’m listed with ChexSystems?’His answer shocked me.’We don’t use CheckSystems. I’d be happy to open an account for you.’And so he did.I returned to the car, excited to share my discovery with Michele. We had a checking account from a bank!What I hope you glean from this is that not all banks or credit unions use ChexSystems.

    It may seem like it in some cities, but they absolutely are not used by 100% of financial institutions.How To Get a Checking Account If You’re Listed In ChexSystemsThe best way is to find a bank that doesn’t use ChexSystems to verify new accounts.Here’s how to go about it…

      1. Start by making a list of all the bank branches in your area. You’ll do better if you stick with the smaller, local banks and avoid the big banks.

      2. Call and ask to speak to the branch manager.

      3. Inquire about their different checking account programs. (How much money do you need to start an account, how long does it take, can you do it online, what check number will they start you out at, etc.?)

      4. Then ask how they verify new accounts. Do they review your credit report? If so, which credit report, and will the credit inquiry lower your credit scores? (Of course, you know the answer to this question is yesbut let’s see how many tell you the truth.) Or, do they use a check verification service? If so, which one?If the branch manager tells you they don’t use ChexSystemsyou’ve got a winner! Be sure to write down the person’s name and make arrangements to stop in and open an account. If the branch manager tells you they use ChexSystems…here’s what to say next…’…Darn it.

I’m listed with ChexSystems and they’re a bear to deal with to get something resolved. Is there anything I can do to get an account with you?’If they say, ‘No,’ ask them…’Do you happen to know of a local bank that doesn’t use ChexSystems or a program that can help me open a new bank account?’Sometimes you can speed up your search by asking for help. It will take you only a few seconds to ask, but the right answer may save you hours of research.A New Trend DevelopingI’ve noticed more and more banks are reviewing credit reports in lieu of using check verification services.

    Sometimes they even do both! I wouldn’t open an account with a bank that does thismainly because their credit inquiry will lower my credit scores. So keep looking.Banks That Really CareSome banks are willing to give even bankrupt people a break. If you’re searching for a new bank and you think you may have trouble getting a checking account, ask if they have some kind of ’second chance’ or ‘fresh start’ program.A lot of banks have probationary programs that offer limited services for a set amount of time (usually six months).

     If you really need a checking account, these programs can be a lifesaver.There are also two specific services that a lot of banks and credit unions are becoming affiliated with. Basically, these programs allow you to take a course on how to manage a checking account. And when you complete the course, you’ll be given a certificate to open a bank checking account with a participating bank or credit union.

     The two programs are called Get Checking and InBalance. Get Checking is geared more toward banks, while InBalance is more for credit unions.So don’t be afraid to ask. Remember what Eleanor Roosevelt said…’No one can make you feel inferior without your consent.’

By: Stephen Snyder

Article Directory: http://www.articledashboard.com

Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that helps people recover after bankruptcy. He has helped thousands of people obtain a loan after bankruptcy with a fair interest rate.

Today it can be hard finding a bank in your local community to open a bank account for you. The banks are under a lot of pressure from regulators to clan up their act. That’ll happen when you lose billions of dollars and need to be bailed out. More and more banks are moving into the chexsystems system and opening a real non chexsystems bank account can be a real problem if you’re having problems try an online bank.

There are exellent banks around the country that will open a bank account for you a few of them are listed below

 
After Bankruptcy, What Should I Now Do With Chex Systems, Inc …

If you liked that post, then try these…Serial Filings by Debtor Without Lawyer End in No Discharge of Two Debts by Jill Michaux, Kansas Bankruptcy Attorney.

ChexSystems: Alternative Options for People Whove Been Checking …
Individual banks elect to become members of ChexSystems, and to use their services.

jeff raford finance debt management: Non ChexSystems Banks and …
ChexSystems Inc. is a coverage group that continually updates a list of poorly managed inhibit and savings accounts. This information is mutual between a number of different banks, credit union.

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Non Chexsystems Banks

What is chexsystem?

Technorati Tags: banks with no chexsystems reporting, no chexx systems, Non Chexsystems Banks

What to Do if You’re Listed in ChexSystems

Banks and credit unions use Chexsystems when people apply to open a checking account. It’s essentially a consumer reporting agency designed to check if people have a history of writing bad checks. Here’s how to beat them at their own game.

"…I’m sorry, my bank cannot help you. You’re listed in ChexSystems…"

My wife and I just moved from South Bend, Indiana to Indianapolis. We needed a checking account. We both wanted a fresh start after bankruptcy, and opening a new checking account with a new bank seemed like a good place to start.

I chose to go with a national bank and found a branch on Fall Creek Road in Indianapolis near Geist Reservoir. I was nervous.

The thing about filing bankruptcy that most people have a hard time understanding (unless they’ve gone through it themselves) is the feeling of inferiority. Each new credit application can cause anxiety.

I’ll share a quote that pulled me through this stressful time in my life. It’s from Eleanor Roosevelt. She said…

"No one can make you feel inferior without your consent."

I love that quote.

So I walked into the bank branch with the attitude, "Everyone knows I filed bankruptcyso what?" I asked to be directed to the person who could open a new checking account for me.

The lady at the desk who began to talk to me about opening an account was really nice…until she found my name in ChexSystems.

Then everything changed…

"…I’m sorry, my bank cannot help you. You’re listed in ChexSystems…"

That was that.

I walked out of the bank without a checking account because of a company called ChexSystems.

What is ChexSystems?

ChexSystems is a checking account verification company based in Woodbury, Minnesota. Banks and credit unions use them when people apply to open a checking account. It’s essentially a consumer reporting agency designed to check if people have a history of writing bad checks. If you’re listed in ChexSystems you’re usually not allowed to open a checking account with that bank.

ChexSystems is the largest player in the check verification industry. However, there are other companies that provide similar services, such as TeleCheck and Decision Power Insight from Equifaxreg;.

I’ll focus on ChexSystems since they’re the largest.

Are You On The ChexSystems Blacklist?

There are several actions that can get you on ChexSystems’ blacklist…

– Fraudulent handling of a checking account
– Bouncing a check resulting in non-sufficient funds (NSF)
– Overdrafting your account while using your ATM or debit card
– Having your account "closed for cause"

One of the most common ways to get listed in ChexSystems happens when you move or change banks. Because check and debit card charges don’t show up on your account as soon as you make them, you can get hit with NSF charges after you thought you closed your old bank account.

The best way to avoid this problem is to leave your old account open until you are sure all your transactions have cleared.

Once you’re listed in a check verification service such as ChexSystemsit’s best to just pay what’s due. Also, make sure you request a letter on that bank’s letterhead stating that all debts have been paid.

Now, one would think that if you included an unpaid check in your bankruptcy petition that your debt would be erasedI personally didn’t find that to be the case.

I learned that entries remain on your ChexSystems report (even if they’re paid off) for five years. So if you think you’re safe because you paid the check or included it in your bankruptcy, you may not be.

This was my ChexSystems experience. Yours may be different. If you have a ChexSystems story to share go here to tell me about it. I’ll compile all the information and share it with everyone in a future issue.

How Do You Know If You’re Listed In ChexSystems?

You’ll either be unable to open a new bank checking account or you’ll have a difficult time getting stores to accept your checks.

You see, the same corporation that owns ChexSystems also owns SCAN, the company that verifies checks at places such as Wal-Mart or your local grocery store.

When you write a check at a store, and they put it through that little machine at the register, they’re looking to see if you’re listed in either SCAN’s or ChexSystems’ databases. If you are, they usually won’t accept your check.

If they do accept your check, then ChexSystems has guaranteed that it will be honored by your bank. If it bounces like a rubber ball, then ChexSystems will pay the merchant the amount of the check out of their pocket…then you not only have to pay your bank’s NSF fee, but ChexSystems’ as well…which can get expensive.

The best way to know if you’re in ChexSystems is to review your ChexSystems report. Since they’re a consumer reporting agency, ChexSystems has to follow the Fair Credit Reporting Act (FCRA) and the new Fair and Accurate Credit Transactions Act (FACTA). This means you’re entitled to one free copy of your ChexSystems report every year.

What I Figured Out By Accident

After my unexpected rejection from the bank on Fall Creek Road, I needed a few days to regroup.

My wife and I shared a car at the time, and she had a job interview at a RE/MAX real estate office near Geist Reservoir.

As I waited for her, I noticed three new banks just a stone’s throw from each other. Literally, one on each corner of the road. What were they thinking? None of the branches looked busy. My guess was they were stumbling over each other to win new bank customers…even ones listed in ChexSystems.

So I took a chance.

I locked the car, hoping Michele wouldn’t return right away. Then I picked the bank that looked the newest. I went in and asked to be directed to the person who could open a new checking account for me.

I sat down in the branch manager’s office. And as he was going through the routine pleasantries, I noticed him reaching in his drawer for a new starter checking account kit.

I then spoke up and asked, "But what if I’m listed with ChexSystems?"

His answer shocked me.

"We don’t use CheckSystems. I’d be happy to open an account for you."

And so he did.

I returned to the car, excited to share my discovery with Michele. We had a checking account from a bank!

What I hope you glean from this is that not all banks or credit unions use ChexSystems. It may seem like it in some cities, but they absolutely are not used by 100% of financial institutions.

How To Get a Checking Account If You’re Listed In ChexSystems

The best way is to find a bank that doesn’t use ChexSystems to verify new accounts.

Here’s how to go about it…

1. Start by making a list of all the bank branches in your area. You’ll do better if you stick with the smaller, local banks and avoid the big banks.
2. Call and ask to speak to the branch manager.
3. Inquire about their different checking account programs. (How much money do you need to start an account, how long does it take, can you do it online, what check number will they start you out at, etc.?)
4. Then ask how they verify new accounts. Do they review your credit report? If so, which credit report, and will the credit inquiry lower your credit scores? (Of course, you know the answer to this question is yesbut let’s see how many tell you the truth.) Or, do they use a check verification service? If so, which one?

If the branch manager tells you they don’t use ChexSystemsyou’ve got a winner! Be sure to write down the person’s name and make arrangements to stop in and open an account. If the branch manager tells you they use ChexSystems…here’s what to say next…

"…Darn it. I’m listed with ChexSystems and they’re a bear to deal with to get something resolved. Is there anything I can do to get an account with you?"

If they say, "No," ask them…

"Do you happen to know of a local bank that doesn’t use ChexSystems or a program that can help me open a new bank account?"

Sometimes you can speed up your search by asking for help. It will take you only a few seconds to ask, but the right answer may save you hours of research.

A New Trend Developing

I’ve noticed more and more banks are reviewing credit reports in lieu of using check verification services. Sometimes they even do both! I wouldn’t open an account with a bank that does thismainly because their credit inquiry will lower my credit scores. So keep looking.

Banks That Really Care

Some banks are willing to give even bankrupt people a break. If you’re searching for a new bank and you think you may have trouble getting a checking account, ask if they have some kind of "second chance" or "fresh start" program.

A lot of banks have probationary programs that offer limited services for a set amount of time (usually six months). If you really need a checking account, these programs can be a lifesaver.

There are also two specific services that a lot of banks and credit unions are becoming affiliated with. Basically, these programs allow you to take a course on how to manage a checking account. And when you complete the course, you’ll be given a certificate to open a bank checking account with a participating bank or credit union.

The two programs are called Get Checking and InBalance. Get Checking is geared more toward banks, while InBalance is more for credit unions.

So don’t be afraid to ask. Remember what Eleanor Roosevelt said…

"No one can make you feel inferior without your consent."

Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that helps people recover after bankruptcy. He has helped thousands of people obtain a loan after bankruptcy with a fair interest rate.

By Stephen Snyder Published: 5/7/2007

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    Getting into trouble with a bank is actually pretty easy these days, banks are famous for their hidden fees and delayed crediting of funds to accounts. If any of this has created a chexsystems report or record and has cause the bank to close your account you can find a chex system checking account at www.chexsystems.biz

Writing a bad check can really be a tough predicament. It can happen to anyone, even those who that make an effort of taking care of their money. Poor budgeting and impulsive thinking are the most common root of this financial problem. If you happen to blunder into this situation, acting quickly to resolve this problem is critical because this mistake can be costly.

While a single bad check may not be too much of a problem, a number of them can cause havoc on your budget. You have to pay a bank fee which can range from twenty to thirty dollars or more. You may also have to pay the same price to the person or store for the inconvenience you have caused.

If your bad checks pile up, your bank account will quickly go into negative numbers and your bank may ultimately decide that you are a huge risk and close your account completely. Opening a new account will not be possible unless you repay the balance of your previous account and your bouncing check will recorded on ChexSystems alerting other banks of your infractions

Your problems can also worsen if establishments resort to legal action to retrieve their money. You may receive a call from companies that specialize in recovering bad checks, reminding you to resolve the problems with their clients as soon as possible. Bad checks will not affect only your finical situation; your reputation can also be destroyed as well. Banks will be reluctant to do any business with you and it will also diminish of job opportunities that will be available to you.

Try to avoid writing bad checks as much as you can. The problems that plague you after writing one can plague you for a long time. If an accident does happen, try to work out the problem as quickly as you can. Your future and reputation are at stake so always keep an eye out to keep your financial situation healthy.

 if you’ve experienced any of this and found yourself on chexsystems or have been reported to any company that files reports to banks that report on you and then refuse to open a checking account for you …you can find the hel you need opening a bank account without chexsystems on this sit.

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