There are a select number of people who’ll ever have to deal with this, but if your name ever happens to land on the ChexSystems list it is going to be a little interesting when you’re trying to find a new bank account. Check systems is much like a blacklist that the banks use when they are making their decisions with opening a bank account. Banks do not just give a bank account to anyone. What they do is they perform a financial assessment before giving you a bank account. Banks can do this in multiple ways, and the most common way that they make their decision is to check the ChexSystems list or check your credit.
Now, even though your name is on ChexSystems, it is still possible to get a new checking account. One way, is to find a bank that does not use ChexSystems this method could take a little longer to find a bank that does not use it, but if you live in an area that has no Banks with a second chance checking account program, you are going to have to work a little harder. It’ll make it even more difficult if you have bad credit on top of your name being on ChexSystems.
For the most part, the large banks like Wells Fargo, Chase, Bank of America, Union Bank of California, Citibank, and more use ChexSystems when they are working with new clients. The main thing you should be looking for are the banks that are small because you are not going to have much chance is if you are trying to open a new account with the large banks.
So you might be asking yourself, what exactly do you have to do to get your name on ChexSystems? Well, for the people who are tight on money, especially in this economy, it isn’t that difficult. If your overdraft fees or nonsufficient funds fees start to stack up exponentially your bank account can go deep into the negative, and if you are not able to pay those fees back, your name is going to end up on ChexSystems. With the new banking regulations that have been set regarding Banks automatically signing customers up for overdraft protection, there is probably going to be a decreased amount of people ending up on this list.
If you are fortunate to not be in this situation, but you are tight on money in your bank account is extremely low, you might want to check to see if your account is set up for overdraft protection. The last thing you want to do in this economy is end up with your account hundreds of dollars into negative from overdraft or nonsufficient funds fees. It will not only be frustrating having to pay all of the NSF fees, it will make things even worse if your bank account is closed and you have no easy way to pay your bills.
If you do happen to end up in the situation, the best route to take is to open a second chance checking account or open a new bank account non ChexSystems Banks.