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If you are stuck in ChexSystems, it may seem like you're caught up in a complicated web that you'll never be able to escape. By making one minor mistake, like accidentally bouncing a check, you could face some major consequences if you are reported to ChexSystems.
Many consumers who find themselves trapped in this system feel as if they're constantly being punished for one small error in the distant past. It can be close to impossible to find a bank that will let you open a checking or savings account if you are in the ChexSystems database.
Fortunately, we at Bad Credit Alliance can help you get out of this jam. Read on to learn more about ChexSystems and discover how to break away from the system.
What exactly is ChexSystems?
While many consumers complain about ChexSystems, the service is not all bad. In actuality, ChexSystems is a necessary and effective service that helps to protect our nation's financial institutions. U.S. banks and credit unions report "incidents" to ChexSystems to ensure that other financial entities aren't harmed in the future.
For example, if a bank is forced to close a consumer's checking or savings account, they often report this to ChexSystems. You may ask, what makes a bank close a customer's account in the first place? Although each bank has a different set of account closing "triggers," here are a few of the most common reasons:
- The bank never receives money for an overdraft, ATM transaction or automatic payment they honored on insufficient funds. (Regardless of how small the amount you owe, the bank can close your account after just a few days if they do not receive payment for a fee.)
- Multiple overdrafts
- Abuse of savings account, debit card or ATM
- Fraud
- Providing false information to open an account
In other words, all it takes is once bounced check or unpaid fee to land yourself into ChexSystems. Unfortunately, once your account is closed and you are reported to ChexSystems, you are stuck in the system for five full years. That means you're pretty much doomed to face some frustrating financial problems over the next few years, such as being unable to open a checking account.
The problem with the system
While it's understandable that a bank would want to protect themselves from the potential of fraud, many ChexSystems critics point out that this punishment is way too severe for someone who accidentally bounces one check or makes a single overdraft mistake.
There's no doubt that consumers who chronically write bad checks should have their criminal activities recorded in ChexSystems. However, not all negative activities are examples of fraud or intentional misconduct. Most of us have written at least one check that either bounced or came close to it, but that does not make us criminals.
Nevertheless, an astounding 80 percent of U.S. banks and credit unions belong to the ChexSystems network. That means the system is practically unavoidable for any consumer who makes one tiny check-writing mistake.
The severe consequences
Many consumers who end up in ChexSystems complain that the punishment does not fit their minor and usually unintentional crime. For example, one consumer said that his former bank reported him to ChexSystems simply because an insurance company automatically debited $60 from a closed account.
Incredibly, that one accidental incident led to this consumer being labeled as a "bad risk" in ChexSystems. As a result, the consumer was rejected every time he attempted to a bank account over the next five years.
Baby steps out of the ChexSystems maze
If you learn that you are in the ChexSystems database, what should you do? If you find yourself in this bind, here are some of the first steps you should take:
- Don't close accounts: If your bank closes one of your accounts, do not close any other checking or savings accounts. Keep all of these account balances in the black, and avoid overdrafts at all costs.
- Pay your fees: Pay all overdraft or other bank fees as soon as possible.
- Make good on checks: If you have bounced any checks, pay back your bank or anyone else you owe immediately.
- Explain yourself: Contact ChexSystems and ask them to add a short explanation to your file in their system. This note should explain why you ended up in the database. For example, your explanation may read, "My insurance company automatically debited $60 from a closed account without my knowledge."
- Never give up: Believe it or not, there is a way to open an account after you are in ChexSystems. Bank and credit union managers can decide for themselves whether they will open an account for a consumer in the ChexSystems database. Therefore, you can explain your situation to the new accounts manager at your bank and try to convince him or her that your business is worth the risk. Of course, this can be a difficult process, and many banks will reject you regardless of the reason for your ChexSystems record.
- Find a different bank: Some banks allows consumers to open a checking account even if they have file in ChexSystems. However, these banks can be few and far between, so they can be tough to find. That's where we can help!
Let us find the right bank for you
As many consumers have learned, the best way to fight their ChexSystems file sometimes comes down to finding the right bank. This is where we at Bad Credit Alliance can help.
Only 20 percent of financial institutions do not use ChexSystems. Although that may seem like a small percentage, we can place some of these uncommon banks right at your fingertips. That's because we offer a list of banks that don't use ChexSystems.
Put an end to the endless bank rejections, and purchase our list of Non ChexSystems Banks today. With this unique list, we can guide you to a bank that will work for you. Even if you have a file in ChexSystems, bad credit issues, no credit history or past bankruptcy, we can help make your dreams of opening a bank account a reality.
Tap into the power of our valuable list
Free yourself from past mistakes with our Non ChexSystems Banks list. This valuable list includes an up-to-date listing of more than 100 FDIC banks that have a history of allowing "bad check" consumers to open accounts. The list includes contact information for each of these banks, nationwide. Plus, many of these banks offer online applications, Visa Check Cards and/or ATM cards!
As part of this list, you'll also receive information on how to open a new checking account, despite being listed in ChexSystems.
Please note: If you are listed in ChexSystems, you must have two valid forms of identification to open an account. This may include a driver's license or state identification card and a Social Security card. Without at least two forms of id, you will not be able to take advantage of our valuable information.
90-day money-back guarantee
You have nothing to lose when you purchase our list of Non ChexSystems Banks. That's because we offer a 90-day money-back guarantee on your purchase. If you are unable to open a bank account within 90 days, we will promptly refund your money.
To receive your refund, simply fax us four copies of new account denials made from banks listed on our Non-ChexSystem Banks list within 90 days of your purchase.
Discover new hope
Don't let ChexSystems and your bank hold you down. With Bad Credit Alliance on your side, you can overcome this seemingly impossible challenge.
Get back on the road to financial freedom. Purchase our Non ChexSystems Banks package today!
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