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Guest

My bank(Focus Credit Union) sent me a letter saying that my account was closed and that I have been reported to Chexsystems for NSF. I owe them 517.00. The reason I owe them is because the company(pdl) that is debiting my account, I couldn't find any contact information to call them and tell them that I had switched banks. The people at the credit union don't have any contact information for them either. My question is that I opened up a Bank of America account about a month ago and I'm wondering if they will close my account because of this?

Thanks

Posted: Sun Dec 30, 2007 1:29 pm Subject:

Chances are no BOA will not close your account. Is it possible? Unfortunately yes, there have been instances where this has happened. It seems more common amoung banks certain banks than others.

Some banks have online applications that will approve immediately. Then the bank will wait until the signature card is sent in to actually look at the chexsystems report. At that point, they will send back the initial deposit and close the account.

Then there are other banks that do "sweeps" on accounts. This is where a bank, generally the loss prevention department will do a random check on accounts with chexsystems. If they find that the customer has a chexsystems record, they then will determine that they person may be a risk and they will freeze account, and later close it.

For these reasons I always suggest that if you have been reported to chexsystems that you try to find a bank that does not use chexsystems at all if possible. Now an exception to this rule is if a bank opens an account and is aware of the chexsystems report. Most times you will be fine with these circumstances. Unfortunately there have been situations that were reported to me where for example a manager of a branch decides to open an account and over ride the chexsystems report for the customer. Then later the loss prevention department determines that the manager was not correct to open it and once loss prevention decides it is a potential risk, they will freeze the account and then close it.

These situations can create a very bad situation for some customers especially is they have all of their money in this one account when it is frozen and closed. If a bank does decide to freeze an account, they will not allow a customer access to their money for a period of time that is normally 30 days or more. I can not begin to tell you the horror stories that I have heard over the years when this happens. Because of this, I suggest that you always have a back up account if you are going to bank with a bank that uses chexsystems.

Guest · Posted: Sun Dec 30, 2007 5:53 pm Subject:

Thanks for the information

I basically just use BOA for cashing my check and paying a couple of bills. I don't have any checks just a check card. My last bank taught me a very hard lesson of never putting all my money into an account. I have been scewed too many times.

Guest · Posted: Tue Jan 01, 2008 8:47 am Subject:

Being honest with the bank also helps. I'm on chexsystems and I told the personal banker that upfront and I also told him that I'm in a Ch 13 and that bank is included in it. He still overrided the chexsystems report and opened the acct. He also told me that if loss prevention notices my acct, then the branch manager would back him up as far as fighting to keep my acct opened.

How often do banks do the "sweeps?' Just wondering because I've had this acct for three months now and have not bounced a check. I'm just hoping that this looks good for me in loss preventions eyes, even though I'm on chexsystems.

Posted: Tue Jan 01, 2008 8:10 pm Subject: Same Situation

I assisted (cosigned) my sister to open an account at Klien Forest Bank in Texas. A couple of months later I withdraw my name and signer on the account and she was current and doing fine. However the next year after she constantly was going negative making false Atm deposits and they attempted to go after me eventhough I had been off the account. Washington Mutual whom I have used for over 8 years now called to tell me I cna clear up the situation or move to another back. Needless to say I was able to reconcile relationship with Wamu and wrote one letter to Klien Forest and the harrassments stopped(as they had no legal ground). Anwyay to answer your question they can do what they want with in the law and if you are too high of a risk they have the option to cease any account.

Posted: Wed Jan 02, 2008 12:46 pm Subject:

As far as how often banks do " sweeps " It really all depends on what bank it is. I know in the past 2 weeks or so I have had about 10-15 people tell me that they were able to open accounts at WAMU and were later closed due to chexsystems. I have had a few tell me the same about Wells Fargo just last week. And one person tell me that Wachovia shut them down. The account was over a year old. So that one blew me away.

Technically banks can decide to not have a relatinship with a customer for ANY reason they want. They really don't need a reason at all. It is all part of the agreements and disclosures that you sign when you apply for the account.

Posted: Fri Jan 04, 2008 11:05 am Subject:

Not only is it part of the rules and regs you agree to by signing the signature card, but banks are a business. I know this may sound harsh, but having a bank account is not a right. It's a privilege. They are a business like any other. They can refuse to do business with any one they choose to. True, they have more rules in place set by the feds so they don't randomly discriminate about who they do business with, but the bottom line is they are a business with the purpose of making money and showing a return for their stock holders. If they are getting heat from the stock holders about not making enough money, they will start to be more strict about who they will and won't open accounts for. That's usually when they do these sweeps to weed out the possible risky account holders.

Posted: Sun Jan 06, 2008 12:47 pm Subject:

stories like this are the reason i just never will trust WAMU but there are people even now on chexsystems that are opening accounts with them. They may be a great bank if you are not on chexsystems but if you are then WATCH OUT!

Posted: Tue Jan 08, 2008 12:02 pm Subject:

Yeah..WaMu's been in the news for stuff lately, and being looked at by the FEDS for mortgage stuff, so I'm not surprised they are starting to be stricter with the Chexsystems stuff. They are one of those going toward using the EWS system soon. They already use it at their teller windows, and were in the process of switching to that system for new accounts when i left.

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