| "...I'm sorry, my bank cannot help you. | | | | Accurate Credit Transactions Act (FACTA). |
| You're listed in ChexSystems..." | | | | This means you're entitled to one free copy |
| | | | of your ChexSystems report every year. |
| My wife and I just moved from South Bend, | | | | |
| Indiana to Indianapolis. We needed a checking | | | | What I Figured Out By Accident |
| account. We both wanted a fresh start after | | | | |
| bankruptcy, and opening a new checking | | | | After my unexpected rejection from the bank |
| account with a new bank seemed like a good | | | | on Fall Creek Road, I needed a few days to |
| place to start. | | | | regroup. |
| | | | |
| I chose to go with a national bank and found | | | | My wife and I shared a car at the time, and |
| a branch on Fall Creek Road in Indianapolis | | | | she had a job interview at a RE/MAX real |
| near Geist Reservoir. I was nervous. | | | | estate office near Geist Reservoir. |
| | | | |
| The thing about filing bankruptcy that most | | | | As I waited for her, I noticed three new |
| people have a hard time understanding (unless | | | | banks just a stone's throw from each other. |
| they've gone through it themselves) is the | | | | Literally, one on each corner of the road. |
| feeling of inferiority. Each new credit | | | | What were they thinking? None of the branches |
| application can cause anxiety. | | | | looked busy. My guess was they were stumbling |
| | | | over each other to win new bank |
| I'll share a quote that pulled me through | | | | customers...even ones listed in ChexSystems. |
| this stressful time in my life. It's from | | | | |
| Eleanor Roosevelt. She said... | | | | So I took a chance. |
| | | | |
| "No one can make you feel inferior without | | | | I locked the car, hoping Michele wouldn't |
| your consent." | | | | return right away. Then I picked the bank |
| | | | that looked the newest. I went in and asked |
| I love that quote. | | | | to be directed to the person who could open a |
| | | | new checking account for me. |
| So I walked into the bank branch with the | | | | |
| attitude, "Everyone knows I filed | | | | I sat down in the branch manager's office. |
| bankruptcy-so what?" I asked to be directed | | | | And as he was going through the routine |
| to the person who could open a new checking | | | | pleasantries, I noticed him reaching in his |
| account for me. | | | | drawer for a new starter checking account |
| | | | kit. |
| The lady at the desk who began to talk to me | | | | |
| about opening an account was really | | | | I then spoke up and asked, "But what if I'm |
| nice...until she found my name in | | | | listed with ChexSystems?" |
| ChexSystems. | | | | |
| | | | His answer shocked me. |
| Then everything changed... | | | | |
| | | | "We don't use CheckSystems. I'd be happy to |
| "...I'm sorry, my bank cannot help you. | | | | open an account for you." |
| You're listed in ChexSystems..." | | | | |
| | | | And so he did. |
| That was that. | | | | |
| | | | I returned to the car, excited to share my |
| I walked out of the bank without a checking | | | | discovery with Michele. We had a checking |
| account because of a company called | | | | account from a bank! |
| ChexSystems. | | | | |
| | | | What I hope you glean from this is that not |
| What is ChexSystems? | | | | all banks or credit unions use ChexSystems. |
| | | | It may seem like it in some cities, but they |
| ChexSystems is a checking account | | | | absolutely are not used by 100% of financial |
| verification company based in Woodbury, | | | | institutions. |
| Minnesota. Banks and credit unions use them | | | | |
| when people apply to open a checking account. | | | | How To Get a Checking Account If You're |
| It's essentially a consumer reporting agency | | | | Listed In ChexSystems |
| designed to check if people have a history of | | | | |
| writing bad checks. If you're listed in | | | | The best way is to find a bank that doesn't |
| ChexSystems you're usually not allowed to | | | | use ChexSystems to verify new accounts. |
| open a checking account with that bank. | | | | |
| | | | Here's how to go about it... |
| ChexSystems is the largest player in the | | | | |
| check verification industry. However, there | | | | 1. Start by making a list of all the bank |
| are other companies that provide similar | | | | branches in your area. You'll do better if |
| services, such as TeleCheck and Decision | | | | you stick with the smaller, local banks and |
| Power Insight from Equifaxreg;. | | | | avoid the big banks. |
| | | | |
| I'll focus on ChexSystems since they're the | | | | 2. Call and ask to speak to the branch |
| largest. | | | | manager. |
| | | | |
| Are You On The ChexSystems Blacklist? | | | | 3. Inquire about their different checking |
| | | | account programs. (How much money do you need |
| There are several actions that can get you on | | | | to start an account, how long does it take, |
| ChexSystems' blacklist... | | | | can you do it online, what check number will |
| | | | they start you out at, etc.?) |
| - Fraudulent handling of a checking account | | | | |
| | | | 4. Then ask how they verify new accounts. Do |
| - Bouncing a check resulting in | | | | they review your credit report? If so, which |
| non-sufficient funds (NSF) | | | | credit report, and will the credit inquiry |
| | | | lower your credit scores? (Of course, you |
| - Overdrafting your account while using your | | | | know the answer to this question is yes-but |
| ATM or debit card | | | | let's see how many tell you the truth.) Or, |
| | | | do they use a check verification service? If |
| - Having your account "closed for cause" | | | | so, which one? |
| | | | |
| One of the most common ways to get listed in | | | | If the branch manager tells you they don't |
| ChexSystems happens when you move or change | | | | use ChexSystems-you've got a winner! Be sure |
| banks. Because check and debit card charges | | | | to write down the person's name and make |
| don't show up on your account as soon as you | | | | arrangements to stop in and open an account. |
| make them, you can get hit with NSF charges | | | | If the branch manager tells you they use |
| after you thought you closed your old bank | | | | ChexSystems...here's what to say next... |
| account. | | | | |
| | | | "...Darn it. I'm listed with ChexSystems and |
| The best way to avoid this problem is to | | | | they're a bear to deal with to get something |
| leave your old account open until you are | | | | resolved. Is there anything I can do to get |
| sure all your transactions have cleared. | | | | an account with you?" |
| | | | |
| Once you're listed in a check verification | | | | If they say, "No," ask them... |
| service such as ChexSystems-it's best to just | | | | |
| pay what's due. Also, make sure you request a | | | | "Do you happen to know of a local bank that |
| letter on that bank's letterhead stating that | | | | doesn't use ChexSystems or a program that can |
| all debts have been paid. | | | | help me open a new bank account?" |
| | | | |
| Now, one would think that if you included an | | | | Sometimes you can speed up your search by |
| unpaid check in your bankruptcy petition that | | | | asking for help. It will take you only a few |
| your debt would be erased-I personally didn't | | | | seconds to ask, but the right answer may save |
| find that to be the case. | | | | you hours of research. |
| | | | |
| I learned that entries remain on your | | | | A New Trend Developing |
| ChexSystems report (even if they're paid off) | | | | |
| for five years. So if you think you're safe | | | | I've noticed more and more banks are |
| because you paid the check or included it in | | | | reviewing credit reports in lieu of using |
| your bankruptcy, you may not be. | | | | check verification services. Sometimes they |
| | | | even do both! I wouldn't open an account with |
| This was my ChexSystems experience. Yours may | | | | a bank that does this-mainly because their |
| be different. If you have a ChexSystems story | | | | credit inquiry will lower my credit scores. |
| to share go here to tell me about it. I'll | | | | So keep looking. |
| compile all the information and share it with | | | | |
| everyone in a future issue. | | | | Banks That Really Care |
| | | | |
| How Do You Know If You're Listed In | | | | Some banks are willing to give even bankrupt |
| ChexSystems? | | | | people a break. If you're searching for a new |
| | | | bank and you think you may have trouble |
| You'll either be unable to open a new bank | | | | getting a checking account, ask if they have |
| checking account or you'll have a difficult | | | | some kind of "second chance" or "fresh start" |
| time getting stores to accept your checks. | | | | program. |
| | | | |
| You see, the same corporation that owns | | | | A lot of banks have probationary programs |
| ChexSystems also owns SCAN, the company that | | | | that offer limited services for a set amount |
| verifies checks at places such as Wal-Mart or | | | | of time (usually six months). If you really |
| your local grocery store. | | | | need a checking account, these programs can |
| | | | be a lifesaver. |
| When you write a check at a store, and they | | | | |
| put it through that little machine at the | | | | There are also two specific services that a |
| register, they're looking to see if you're | | | | lot of banks and credit unions are becoming |
| listed in either SCAN's or ChexSystems' | | | | affiliated with. Basically, these programs |
| databases. If you are, they usually won't | | | | allow you to take a course on how to manage a |
| accept your check. | | | | checking account. And when you complete the |
| | | | course, you'll be given a certificate to open |
| If they do accept your check, then | | | | a bank checking account with a participating |
| ChexSystems has guaranteed that it will be | | | | bank or credit union. |
| honored by your bank. If it bounces like a | | | | |
| rubber ball, then ChexSystems will pay the | | | | The two programs are called Get Checking and |
| merchant the amount of the check out of their | | | | InBalance. Get Checking is geared more toward |
| pocket...then you not only have to pay your | | | | banks, while InBalance is more for credit |
| bank's NSF fee, but ChexSystems' as | | | | unions. |
| well...which can get expensive. | | | | |
| | | | So don't be afraid to ask. Remember what |
| The best way to know if you're in ChexSystems | | | | Eleanor Roosevelt said... |
| is to review your ChexSystems report. Since | | | | |
| they're a consumer reporting agency, | | | | "No one can make you feel inferior without |
| ChexSystems has to follow the Fair Credit | | | | your consent. |
| Reporting Act (FCRA) and the new Fair and | | | | |