Chexsystems...

[kitten]

Saw this NYT article about people being locked out of banking because of having overdrafts, as reported by ChexSystems -

http://dealbook.nytimes.com/2013/07/30/over-a-million-are-denied-bank-accounts-for-past-errors/?src=me&ref=general

We have Chase overdraft protection, and we have had a number of overdrafts over the years (and fewer recently). I couldn't get clear from reading the article whether we'd be likely to be blacklisted by ChexSystems, if we wanted to switch to another bank (or add a new account at a different bank) as a result of our OD record with Chase. Would be interested in knowing if anyone on the forum has been blackballed by ChexSystems?

[Tiam]

Saw this NYT article about people being locked out of banking because of having overdrafts, as reported by ChexSystems -

http://dealbook.nytimes.com/2013/07/30/over-a-million-are-denied-bank-accounts-for-past-errors/?src=me&ref=general

We have Chase overdraft protection, and we have had a number of overdrafts over the years (and fewer recently). I couldn't get clear from reading the article whether we'd be likely to be blacklisted by ChexSystems, if we wanted to switch to another bank (or add a new account at a different back) as a result of our OD record with Chase. Would be interested in knowing if anyone on the forum has been blackballed by ChexSystems?


Usually, it's because you had an account closed with overdrafts still on it.

[CathyA]

I was all ready for some good Chex recipes. :~)

[jennipurrr]

Usually, it's because you had an account closed with overdrafts still on it.

Yeah, banks looovvvveeee folks who have overdrafts regularly and then bring their account current. They are their VIP customers and they want to keep their business because they are so profitable. As, Tiam said, the chexsystems database is folks who walk away from an overdrawn account. If your account is still open, you are not in the database.

[gmpg54]

My experience with them has been if the account is closed(usually by the bank) with a negative balance(overdrawn) it's reported to this ChexSystems.
I've had a horrendous experience with a bank and them,my husband died unexpectedly,our car was in his name,we had a joint account,I made arrangements with the lienholder to repossess the car as I couldn't afford to make the payments,they continued for about 6 months to put through their EFT payments we had setup,needless to say they were returned ISF.
I went to the branch manager,whom we had done business with for many years,explained the situation and asked for help(closing the account) and reopening under a different number,they chose not to help.
This was 7 years ago,I still cannot open a checking account anywhere...

[Tiam]

My experience with them has been if the account is closed(usually by the bank) with a negative balance(overdrawn) it's reported to this ChexSystems.
I've had a horrendous experience with a bank and them,my husband died unexpectedly,our car was in his name,we had a joint account,I made arrangements with the lienholder to repossess the car as I couldn't afford to make the payments,they continued for about 6 months to put through their EFT payments we had setup,needless to say they were returned ISF.
I went to the branch manager,whom we had done business with for many years,explained the situation and asked for help(closing the account) and reopening under a different number,they chose not to help.
This was 7 years ago,I still cannot open a checking account anywhere...


Wow. Nice.>:(

[gimmethesimplelife]

Ugggh! Another reason I don't like banks! Though I don't think one this one a credit union would be much different as they are doing to run you through Chexsystems too. How long that does stay on your record? If bankruptcy only follows you seven years, wouldn't this stop following after seven years too? Rob

[reader99]

I got blocked from paying a merchant by check because of them and it was not because of overdrafts but because they had no record for me. I rarely write checks. It's sort of like being denied credit because you don't have any credit history.

Like a credit bureau, they have to let you see your record, and you can dispute inaccuracies. https://www.consumerdebit.com/consumerinfo/us/en/index.htm

[kitten]

Okay, that totally makes sense.

One of the commenters on the NYT site noted that the author of the piece doesn't mention WHY the woman who was the subject of the article had left her previous bank. He quoted her as saying that she had brought her account current, but maybe that wasn't true - some things just didn't add up in the article.


Yeah, banks looovvvveeee folks who have overdrafts regularly and then bring their account current. They are their VIP customers and they want to keep their business because they are so profitable. As, Tiam said, the chexsystems database is folks who walk away from an overdrawn account. If your account is still open, you are not in the database.

[kitten]

Yes, the article said the ChexSystems ding falls off after seven years.

When you're using a debit card and checks, it's sometimes tough to know exactly how much you have in your account at a given moment. But that's why you need a surplus. You don't go below, say $500 or whatever...That possibility wasn't even mentioned in the article.


Ugggh! Another reason I don't like banks! Though I don't think one this one a credit union would be much different as they are doing to run you through Chexsystems too. How long that does stay on your record? If bankruptcy only follows you seven years, wouldn't this stop following after seven years too? Rob

[kitten]

LOL!

I was all ready for some good Chex recipes. :~)

[ToomuchStuff]

I haven't been a member of a bank in a LONG time (bank took over my S&L after that series of failures), but use a credit union instead. I would think you could try to open another account, BEFORE you closed your current one, and get your answer, pretty quick.

[kitten]

This is really awful! Say, if it was seven years ago though, this should be falling off your record about now.


My experience with them has been if the account is closed(usually by the bank) with a negative balance(overdrawn) it's reported to this ChexSystems.
I've had a horrendous experience with a bank and them,my husband died unexpectedly,our car was in his name,we had a joint account,I made arrangements with the lienholder to repossess the car as I couldn't afford to make the payments,they continued for about 6 months to put through their EFT payments we had setup,needless to say they were returned ISF.
I went to the branch manager,whom we had done business with for many years,explained the situation and asked for help(closing the account) and reopening under a different number,they chose not to help.
This was 7 years ago,I still cannot open a checking account anywhere...

[puglogic]

I was all ready for some good Chex recipes. :~)

Mmmmm, party mix! :D