bank reporting me to ChexSystems

[bkbkbk]

I just got a letter from a major bank that states if I don't make a deposit to make good my overdrawn checking account within 30 days:

1. They will close my account due to an overdrawn balance, which may make it difficult for me to establish a banking relationship elsewhere

- Is this solely related to being reporting to ChexSystems in #2 below? Or is there another mechanism I should be aware of?

2. They will report me to ChexSystems. It could remain on file for up to 5 years, even if the debit is fully paid, and could prevent me from opening accounts with other financial instiutitons in the future.

- Once I am reported to ChexSystems, is there any way to fix this? How bad is it to be reported? How hard would it be to establish a new checking account in the future (before or after bankruptcy, which I haven't filed yet)? Would it also be hard to establish other types of financial accounts, such as brokerage accounts? Are there any other financial impacts from this?

3. Refer my account to a collection agency or attorney.

- I don't care about #3.

[chloe0724]

Being reported to checksystems will make it very hard for you to open an account anywhere else. I would suggest trying to make a deposit prior to this happening, or open an account at another bank before you are reported.

[AngelinaCatHub]

Being reported to checksystems will make it very hard for you to open an account anywhere else. I would suggest trying to make a deposit prior to this happening, or open an account at another bank before you are reported.

I agree, however, you MUST make those NSF good in any case. You do not want to go into Court over this. I know, been there, the bank charges you a penalty, the vendor does the same, but please make them right as you do not want the States Attorney involved. You know, the rich get richer, the poor get poorer. We am there. Best wishes. 'Hub

[epiphany]

Deleted confusing post.

Sorry.

ep

[bkbkbk]

I did a search on ChexSystems on this forum. It looks like some people have been successful in getting removed from ChexSystems after going bankrupt. (Now I don't recall if it's after just filing or after the bankruptcy completes.) I don't recall anyone saying you can still get in trouble for not paying an overdrawn balance (the portion not due to bank fees) even if you file bankruptcy. Can you confirm this?

P.S. The account is less than $500 overdrawn. Would anyone really pursue it?

[epiphany]

Sorry, I totally mis-worded my last reply so I am going to delete some of it after I finish this one.

The point is that you should make good on any bad checks floating around out there because writing bad checks can be a criminal offense. I am sure that you could include any vendors whom you wrote bad checks to in the BK but I don't think that would eliminate the slim (very slim but why take the chance?) of prosecution. An angry vendor could potentially forward the bad check(s) to the district attorney's office.

That being said, I do not know if bad check laws vary from state to state but that is the way it is in Calfornia.

Now, if you are only talking about being overdrawn (no bounced checks), then you don't have to worry about it. Include the negative bank balance in the BK and call it a day.

Hope that's clearer.

ep

[jktrading]

Years ago I once bounced a check to a supermarket and was immediately placed in the chex system. It took a few days to get it straightened out by paying everything off. In between those few days, the local pizza joint wouldn't even accept a check from me.

Just saying, you don't want to be in that system. Pay it off, move on.