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ChexSystems: Alternative Options for People Whove Been
Checking Accounts
Individual banks elect to become members of ChexSystems, and
to use their services.
Those individual banks are the ones who decides what is
sufficient cause to close your account and report you to
ChexSystems.
It can be what they consider to be frequent overdrafts, ATM
card misuse, an intentional act of fraud, etc.
When that person attempts to open an account at another member
bank a ChexSystems inquiry is made.
Once you become one of the over 8 million names on the
ChexSystems "black list" your information stays in their database
for 5 years.
During this period, whenever you try to open a new banking
account, either personal or business, with a bank that runs
ChexSystems inquiries, you will most likely be denied.
If you are listed on ChexSystems it can be a major
inconvenience in your life, but you do have some choices if you
would like open a new checking or savings account.
Here are some options, and/or alternatives:
? ChexSystems Removal - Obviously this is the best solution.
Getting removed from ChexSystems is not hopeless. ChexSystems is
a Consumer Reporting Agency, just like Experian, Equifax and
Trans Union. ChexSystems is subject to the Fair Credit Reporting
Act (FRCA). These laws can work in your favor. If they contain
inaccurate information, misleading information, or if they are
unable to verify the information the law states it must be
removed.
? Non ChexSystems Banks - If you're unable to be removed, you
can find a bank or credit union that does not subscribe to
ChexSystems Reporting Systems. Nearly 80% of Banks are members of
ChexSystems. So it does take some effort, but it is not
impossible to find a Non ChexSystems Bank. There are companies
that provide lists of Non Check Systems Banks
? Banks that do not automatically deny due to ChexSystems -
You can find a bank or credit union that does use ChexSystems.
However they have been shown to look at each case individually.
Unlike other banks they will not automatically reject you solely
because you are in ChexSystems systems. They will allow you to
open a new bank account if you give a brief explanation as to
what happened, and have documentation to support your side of
things and/or can prove to them that the amounts have been
settled? or it is clear that the information reported to
ChexSystems was inaccurate.
? Secured Bank Accounts - Just like secured credit cards there
are secured bank accounts. In order to open a checking or savings
account you will need to deposit funds in a separate account like
a Certificate of Deposit (CD) that can be used as collateral.
? International Bank Account - There are many banks and
financial institutions that reside outside U.S. borders. It is
legal to have a Non-U.S. Bank Account. Of course you want to
choose a bank that is set up to handle U.S. currency. For
instance, you can do an online search for Canadian banks, banks
in the Caribbean, or UK.
? Money Market Account - Many financial institutions will
allow you to open a money market account with an check writing
privileges and ATM Credit Card. Since money market accounts are
considered an investment product they are less likely to run a
ChexSystems inquiry. Especially if you open the account with an
investment broker like Merrill Lynch, Dean Witter, Charles Scwaab
etc. instead of a bank.
? Skip the traditional banks all together - If you have direct
deposit available from your employer (which most employers prefer
you to use) then you can get a debit card provided by a variety
of providers at very reasonable monthly fee. Wired Plastic, and
Directo are a couple of choices.
You will be provided with an account and a routing number just
as with any bank. Your paycheck can be automatically deposited.
And you will have a bankcard that can be used at any ATM machine
for 24-hour access to your account. You can also get online bill
pay and more. This is really the main thing you need.
Unless you just absolutely have to have paper checks and a
checkbook, this can be the easiest and quickest way to go.
These are a few of your alternatives if you have been denied
from opening a checking account due to a negative ChexSystems
report.
Greg Ford is the owner and webmaster of http://www.chexsystemssolutions.com
Additional information regarding options for people in
ChexSystems can be found there.
MORE RESOURCES:
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