Need a Banker's Help

[Maleficent13]

What is the "checks system" and is it true that someone in it cannot open an account at any bank, anywhere for a period of 7 years if they are in this system? How do you get in this system?

I have someone at work telling me this (because they are saying they can't have a direct deposit paycheck) and it sounds a bit extreme to me, but I really have no idea. TIA for any info!

 

[vivilasvegas]

If you bounced a check, it may be entered into a database, and that could prevent you from being able to open a checking account. Or if you leave a negative balance in your checking accouht and the account closes. That could also be reported.

I opened a new checking account a year or so ago, and I know I had a bounced check at some point in the past 7 years, but I didn't have a problem.

 

[Poohgirl]

It can happen.... www.consumerdebit.com/consumerinfo/us/en/chexsystems/index.htm

 

[disneynutt1225]

Chex Systems is for lack of a better term a "credit history" of your banking practices. Banks can report you for having consistent negative balances on your account (insufficient funds), writing bad checks, fraud, etc. If you're on Chex Systems most banks will not open an account for you. If you have been reported for NSF activity (insufficient funds) you can sometimes get it removed by going to the bank that reported you, paying them any balances you may owe them and have them draft a letter stating you have settled with them. Some banks will then open an account for you, it's really a managerial decision.

 

[Maleficent13]

So basically they could shop around and see if a bank will let them open one? Are most banks accomodating or not so?

 

[disneynutt1225]

So basically they could shop around and see if a bank will let them open one? Are most banks accomodating or not so?

It depends. Commerce is pretty accomodating, Wachovia I think is pretty accomodating. Bank of America might say no. It really depends on a bank by bank basis. Don't expect to get a "good bank" when you've been reported to Chex. Basically, tell your coworker to take what they can get.

 

[jfulcer]

My brother was able to get a checking account at a bank even though he was in that list. Of course, 3 months later the bank closed his account because he kept bouncing checks. Had to laugh at that one - wish I coulda warned the bank it was going to happen.

Tell ya how he did it - he opened a savings account and 2 weeks later went in and begged for a checking account.

 

[Maleficent13]

Oh! So they could open a savings account and have their checks deposited to a savings account?

I hate it when I get stuck in the middle of this stuff.

 

[ericamanda01]

In all my years in banking I have found that a chek systems record can effect you differently at each bank. Most banks won't even open a savings account if you have a record. And some will want proof that you paid off the account before they open anything for you. It really is just what another poster said, a credit history of your banking.

 

[Marseeya]

I've gotten tied up in Chex Systems twice a long time ago and it was such a hassle!

The first time, I was 18 and closed out an account with a negative balance ($15). When I found out about it, I paid it off with a money order and of course didn't keep my receipt. A year or two later when I went to open a new account, I couldn't because of that and couldn't find proof that I'd paid off the old account. I was on the system for five years, but I was able to finally get an account after re-paying that $15.

The other time was similar, but my fault that time and not the bank's.

 

[mum4jenn]

I never heard of it but you might want to tell your co-worker to try the bank that handles your workplace business. I have had an account(joint) for about 20 years at a credit union but I wanted a single account also to try to control the different bills better so I went to the bank that our school system uses and asked for direct deposit.

 

[disneynutt1225]

Thinking about it more, a credit union might be the way to go for your coworker. While said coworker MIGHT be able to get a savings account and then "upgrade" to a checking once they establish a relationship with the bank, it might not work out that way. It can't hurt to try to open a checking account - it's not rated numerically like a credit report is. That said, your coworker is really just going to have to explain the situation to whatever bank they want to go to.

 

[barkley]

the co-worker may not WANT the check direct deposited to the bank for a variety of reasons (it could create a paper trail to an account they do not want someone else to be aware of, such as a child support collection agency, the irs, the bancruptcy/divorce court...). i say this because i worked for an employer who mandated direct deposit of payroll-the majority of those employees who claimed to be "unable" to open accounts were in actuality hiding funds/income in joint accounts with their names as allowed user but under another person's name and social security number (usualy a child's). when the employer pushed the issue and set a date after which pay could only be issued via wire transfer to a bank (no more paper checks period) these individuals found a credit union or local bank that would "make an exception to the chex's procedure"