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Posted: Sat Aug 02, 2008 5:58 pm Subject: Second Chance Checking

So many people ask me about Second Chance checking. Yes there are some banks that do offer second chance checking.

There are banks that offer second chance checking that will give accounts regardless of what the chexsystems report says. Then there are others that will offer second chance checking but there are exceptions. Example.. if the report reads " fraud" they will not. Some do not care what is reported as long as you do not owe the reporting bank(s) any money Yet others do not care if money is owed.

So it really all depends on each bank. The ones that do offer second chance checking all seem to have different ways to determine is a person is eligible or not.

There are some banks that use chexsystems and they do not offer second chance checking but they will still open an account for someone on chexsystems depending on what the report reads.

When you are considering a second chance checking account, it is always best to get a free copy of your chexsystems report and make sure you know what it actually says. Then it is important to know exactly how the bank determines if you can get an account there. But yes, there are banks that will deny those reported to chexsystems for second chance accounts. Second chance checking does NOT always mean that you will for sure get an account.

Posted: Sun Aug 03, 2008 1:40 am Subject:

My question is this---I was a long time BofA customer (28 years). I left and went to WaMu thinking they had a better deal. After less than a year, I left them and had a negative balance of $1000. I was reported to chexsystems and have subsequently paid off the WaMu account and have gone back to BofA (no problems doing so). 3 months ago I ordered checks from checksunlimited. When chexsystems get this info (like you said would happen on your website) will they tell BofA or did BofA know this when they opened me another account?

Posted: Sun Aug 03, 2008 11:51 am Subject:

Bank Of America should already be aware of your report. It is good not to use Deluxe because there have been cases where this alerts chexsystems to your new account and for some sick reason they feel they have the authority to call up your new bank and let them know that you ....................
" have a negative chexsystems report, owe another bank money, have fraud reported etc"

There have been instances where chexsystems actually told the new bank that it was their recommendation that they close an account. So althought you could order checks through Deluxe and never have any problems at all, it is simply not worth the risk.

Posted: Sun Aug 03, 2008 6:46 pm Subject:

So checksunlimited doesn't always report? Just sometimes is what you are saying?

Do you think that BofA opened another account for me because of my 28 year previous history and maybe the fact that the chexsystems report item was paid in full?

Posted: Mon Aug 04, 2008 12:29 pm Subject:

Checks Unlimiited would turn the inormation over the Deluxe and no they do not always contact the persons bank. It is just sad that it has happened in the past, and that simply ordering checks would cause someone to lose an account.

It is hard to say why Bank of America would open a new account. You long history with them sure would not hurt. Right now they are approving just about anyone and everyone reported to chexsystems

Posted: Tue Aug 05, 2008 1:17 pm Subject:

Why are they approving anyone and everyone? Is it because of the state of the economy?

Posted: Wed Aug 13, 2008 4:29 am Subject:

It has been this way for more than a year now. There are a few people here n there that are denied when the chexsystems report is very recent, and those that had accounts with BOA in the past that were charged off and left an outstanding debt. But no, we have no idea why entirely. Back in 2001, they were part of a survey that they tried to keep quiet.

Back in 2001, a reporter, at the Washington Post wrote a story about chexsystems called
" Checking Error Could Land You on Blacklist". It tells how unfair chexsystems is.

http://www.washingtonpost.com/ac2/wp-dyn?pagename=article&node=&conten tId=A43946-2001Sep29

How for even the smallest amount of money, a person can wind up reported. Personally, I have known someone reported for 13 cents. Of course, this is not likely to happen to someone well off and financially stable that brings deposits to the bank. It is the average person that it happens to frequently.

The story also tells how even a small mistake can be called "account abuse" or "fraud" without any real proof, when it may have been a simple error or an error by the bank. Some banks have policies that even a closed account can be re-opened if an ACH comes through on the account, allowing the account to be over drawn and left in the negative. Someone who has closed an account and moved to another state would have no knowledge of this happening before it is too late. Sound unfair to you?

Well after the story was published in the Washington Post the National Community Reinvestment Coalition has an article about how they decided to conduct a survey with 6 leading banks that all requested to remain anonymous when the NCRC discussed the survey results.

The National Community Reinvestment Coalition is a national nonprofit organization with 640 dues paying nonprofit organizations located in every state in the country. NCRC was founded in 1990 to unite efforts around the nation to increase the flow of private capital into traditionally under served communities.

The NCRC’s survey found that the banks use information in the Chexsystems in an inflexible and reflective manner that is most likely not related to risk. For example, in 1999, five of the six banks denied checking accounts to customers whose ChexSystems reports were five years old. Four of the banks responded that they do not disregard a Chexsystems entry if a consumer repays the overdraft amount. Only one of the banks used factors such as steady employment or paying rent on time in addition to the Chexsystems record when deciding whether to open checking accounts for applicants.

Starting in 2000, two of the banks decided that they would disregard Chexsystems overdraft records that are more than three years old. Later, two of them decided that they would disregard a Chexsystems entry that is more than one year old when the consumer has repaid their debt. One bank would offer a non-check writing transitional account, the Federally subsidized Electronic Transfer Account (ETA), to those with Chexsystems records.

Not surprisingly, the banks with more lenient policies for referring customers to the Chexsystems database referred fewer customers. One bank responding to the NCRC survey would report customers to the Chexsystems database only 30 days after an overdraft while another bank waited 60 days before reporting. One bank considered $35 overdue as an overdraft when all other banks on average considered $67 overdue as overdrafts. The bank with the lowest dollar considered referred about 4 percent of its customers to Chexsystems. So, the bank with one of the more lenient policies referred less than .2 percent of its customers to Chexsystems.

Many of us believe that this survey had triggered BOA and others to become more lenient at a later time. Most of the banks that were part of the survey claim to have changed their policies on chexsystems but from what I can tell, most of the ones included in the report are still denying most everyone reported to chexsystems.

pmburk · Posted: Wed Oct 08, 2008 9:10 am Subject:

Can you tell what banks offer this Second Chance Checking?

I know Woodforest National Bank does (they are mostly in Texas).

Posted: Wed Oct 08, 2008 2:33 pm Subject:

There are many banks that offer second chance checking and it really depends on what state that you live in as to what options are out there for you. Where exactly are you?

Ohiogal23 · Posted: Tue Nov 11, 2008 6:50 pm Subject:

Go to Woodforest.com, they are in 15 states now, and are amazing! Anyone can get an account, no matter what!

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