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