ChexSystems

[syn]

My dad is trying to close his old bank account however Citizens Bank wants $840 in insufficient fund fees. They want him to make a deposit but my dad doesn't have the money to spare to do that.

They sent a letter today saying he has 10 days to make a deposit or they will close his account and write it off as a loss. Fine by him but they also threatened to turn his name into ChexSystems. I checked them out they are like a credit company for banks and if your name is a negative with them it's hard to open a new bank account.

My dad already has a new account already for his business. However, it says with this company a negative mark could last up to 5 years. My dad won't be in business in another 5 years so my question is would it be impossible for him to open a PERSONAL bank account (with the same bank he has now) if he had this negative mark? I don't know if the new bank he has does these sort of checks, they didn't say anything to him when he opened the business account and his credit report and things like that are terrible plus he is notorious for bouncing checks but yet his new bank didn't say anything to him when they ran his SSN.

I just don't see him giving CB $800, unless there is some other way to get around this without having them give his name to this company but I think even if he could say include this in his bk they could notify ChexSystems about him anyways.

Anyone have any ideas? My dad mentioned maybe putting his name on my mom's checking account but I don't know if that would work if he got this negative mark.

[magyar123]

Try US Bank. They used to have something called 2nd chance banking, and open new accounts no matter if you're on/in Chexsystems or otherwise lousy credit.
Note the words "used to have". 3/4 years ago. Don't know if they still do.

[syn]

US Bank? I don't know if my area has that bank, I have never heard of it.

[jribe]

wells fargo has what's called the "opportunity" account which is for people that are on chexsystems or have negative information on their credit reports that would normally prevent them from opening an account.
Wells just bought Wachovia bank, which is mostly on the east coast. I don't know where you live; but they'll be out there soon too.
I have a couple of comments:
1. The new bank your dad is at will run him through chexsystems for the new personal accounts. Business accounts are sometimes looked at a little differently- especially if it is an established business. They'll usually let some things slide (ie bounced checks). However i will caution you that banks can report a person to chexsystems for bounced checks as well.
2. If he is on chexsystems, he will have the same issue being added on to your mom's account as he will opening his own. It's the exact same liability as far as the bank is concerned.
3. I have heard of some people including overdrawn bank accounts in BK, but if you still show up on Chexsystems, the bank won't open an account. It usually takes chexsystems a couple of months to even update to clear someone.

It sounds like your dad needs some help managing his finances. It's not normal to be continuously bouncing checks, and racking up over $800 in NSF certainly is not a good sign. Please help him with his account handling.

I work at a major bank- so this is advice from experience.

[jribe]

US Bank? I don't know if my area has that bank, I have never heard of it.

just saw you're in massachusetts... Wells Fargo isn't there yet; but Wachovia is. It may be a little bit before they start switching Wachovia branches to Wells Fargo- but you can open an account online.

[syn]

I would have to check and see where a Wachovia is in my area. Atleast he has an option because most likely he will be put on ChexSystems because I know he isn't going to pay it.

Clarification, he doesn't bounce checks for fun. With Citizens Bank they screwed with his account by reordering how checks went through. I had his account set up online. Say 4 checks went through, one day they would show up in one order and the next day they would be in a different order. One time a check bounced for no reason even though he had enough in his account to cover it.

With his new bank it has only happened once with bounce checks because a deposit he made, the check came back returned so hence everything bounced. Atleast with this bank when they put down the order of debits clearing it's true to how they cleared.

Thank you for the information. I see this ChexSystems company does collections so most likely they will send him some sort of collections letter and he will have to add it into bk. His old bank just sent another nonsense bill today claiming $113 for deliquent account for his old checking account.

[syn]

I just went to Wachovia's website to look at locations and by looking at their map of locations and what I put down as a search they don't have a branch in Massachusetts.

I did a search online of non chexsystem banks and TD Bank North came up as the only one in MA who doesn't do it and they have a branch in my area.

[brokenbuthealed]

Chase offers one of those types of accounts too. I believe they call it an Access account.

[magyar123]

Chase offers one of those types of accounts too. I believe they call it an Access account.

They might - BUT who would want to deal with them.

[cyn5]

Try credit unions or local banks

I would try one of your local credit unions or a local type of bank. The big banks charge really high fees and I think credit unions and local banks are a little bit more forgiving. I just wanted to add that I have a mentally ill relative that had an account with US Bank and because she got her monthly disability checks automatically deposited every month, they have some crazy thing in which they allow you to take advances on your next check. Well, for people who cannot manage their checking this is a really bad idea. They then proceed to charge an outrageous fee for doing this, then of course when the next month's check comes in, the person doesn't have any money and needs to take yet another advance! Vicious cycle. Then they were also letting bank card charges go through instead of declining them and charging a $37 overdraft on each one and of course this just added up. I think it is criminal what they were doing. I think their thoughts were that they knew a check was coming in every month and knew they would get all their overdraft and cash advance fees paid. Needless to say my relative now has a payee, someone in charge of their finances now...but what a mess. I would never bank with US Bank because of this!

[syn]

Chase wouldn't be a good idea because my dad has them as a creditor on his bk.

Sounds almost like what BOA does, holds onto checks before they deposit them and then things start bouncing in the persons account. I just went through something like that with them. Anyways I have never heard of US Bank so I don't think they are around my area unless they are a bank you only deal with online.

He has a local bank now for his business account that's why I was wondering if they would bother using chex system if he wanted a personal account.

[Nicollette]

I included US Bank in my Ch 13 plan because of an overdrawn checking account. I got wrapped up in their direct deposit advances, which is like a payday loan. They advance you money against your next direct deposit. I believe Fifth Third Bank and a few others are starting to offer this mess too. Needless to say, US Bank reported me to Chexsystems, and the current bank I'm with, allowed me to open a new account by overriding the Chexsystems report, because I showed them proof that US Bank is included in my BK.

[syn]

I included US Bank in my Ch 13 plan because of an overdrawn checking account. I got wrapped up in their direct deposit advances, which is like a payday loan. They advance you money against your next direct deposit. I believe Fifth Third Bank and a few others are starting to offer this mess too. Needless to say, US Bank reported me to Chexsystems, and the current bank I'm with, allowed me to open a new account by overriding the Chexsystems report, because I showed them proof that US Bank is included in my BK.

Hmm, that is interesting. I need to have my dad call his bk lawyer anyways because he needed more time to get his things together but that was a month ago. If he can show he is including Citizens then show it to his current bank then maybe that would work.