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