| What is chexsystem? ChexSystems is a network of financial institutions (mainly banks) that regularly contribute information about account holders that mishandle their checking or savings accounts. Nearly all banks within the US are a part of this consortium. How to Obtain a Non ChexSystems Bank Account Without Being Scammed Before you pay money to any service that claims to give you a non ChexSystems bank account be sure it passes the following tests with flying colors.Make sure the bank is FDIC insured.If it's a credit union, make sure it's NCUSIF insured.Make sure the institution has a physical branch. Do some background work on the bank.Make sure the institution doesn't charge you for common items like monthly statements, telephone services, and withdrawls. What to do if your reported to the Chex System? Do not close any other checking accounts or your savings accounts. Keep the balances in the positive Pay all overdraft fees as soon as possible.Make good on the checks.Once you have paid the overdraft fees and satisfied everyone who received a bounced check, have a short explanation inserted into your Chex System file. Where can I get a checking account if I am on the Chex System? A number of Web sites and classified ads claim to have a list of non-ChexSystems banks. Unfortunately, most of these lists are out of date and inaccurate. Even worse, many of these lists cost money (with no refunds available!). How Expensive Is Your Debt? You can decide to live without a bank account, and pay the extra expenses and deal with the inconvenience of using Check Cashing stores, Money Orders, and using cash for most transactions. You can try to get off the ChexSystems list (which is not impossible, but can be confusing and difficult for most people). You can search around for a bank that doesn't use ChexSystems and that will allow you to open an account even though you are on the ChexSystems list. How long will I be on the Chex System? These are institutions that are prepared to take on prospects with less than stellar credit ratings. Some will approve the application without placing too much weight on the ChexSystems report. Some will require a 1 year waiting period while you pay off your outstanding debts before opening an account. What is Chexsystems Removal? Obviously the best scenario is if your name and record were completely deleted from their database. Depending on individual situations, for some people this may not be as difficult as you may think. Why Banks don't use ChexSystems? A retail grocer who was tired of getting bad checks, came up with the ideal, and originally created what is now know as ChexSystems. He recognized business institutions needed a way to share information to help stop account abuse and fraud. |
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