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Second chance checking

Submitted by Mary Adkins Matthews on Sat, 08/02/2008 - 17:58
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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.


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?


Submitted by Lorri on Sun, 08/03/2008 - 01:40

Lorri

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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.


Submitted by Mary Adkins Matthews on Sun, 08/03/2008 - 11:51

Mary Adkins Matthews

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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


Submitted by Mary Adkins Matthews on Mon, 08/04/2008 - 12:29

Mary Adkins Matthews

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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=&contentId=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.


Submitted by Mary Adkins Matthews on Wed, 08/13/2008 - 04:29

Mary Adkins Matthews

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ive been reporting to checksystem for fraud and i really need account.


Submitted by on Fri, 11/28/2008 - 20:53

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would like to apply for second chance checking.


Submitted by on Tue, 08/11/2009 - 03:34

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Just a heads up, I recently opened a checking account with BOFA (Bank of America) online, received my debit card and account access information, and have signed up for direct deposit. And I have a small debt with ChexSystems from a very old account that was closed with a small balance due. (I am currently working with the bank to get that balance paid off.) But I was allowed to open an account with BOFA, no problem.

A note, however - my account was not reported to ChexSystems for fraud - only for being closed with a balance due. And the balance due was less than $60.


Submitted by SUEBEEHONEY70 on Tue, 08/11/2009 - 09:50

SUEBEEHONEY70

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Bank of America can still be a good one for some. Personally I do not trust them at all. Too many people have reported accounts being opened and later closed due to chexsystems issues. I also know that if you have been reported to EWS, they may open the account but they will for sure close it in about a week or so.


Submitted by Mary Adkins Matthews on Wed, 08/12/2009 - 21:34

Mary Adkins Matthews

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I have a terrible history with chexsystems due to my inability to be responsible when I was younger but BofA still opened an account for me and I have had this account for nearly a year. While I dont agree with some of their banking practices it is nice to have an actual checking account. Too bad they don't have any local branches =/


Submitted by on Fri, 08/28/2009 - 14:36

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Ok so my company sent me to Europe for work, i used to bank with BOA (which now i really hate them) and paid all my bills online before i left to europe i forgot to cancel my automatic bill payment for my wireless so when the bill was due they sent the payment for 340$ and now my account is overdrawn for 340$ and some change and above all that boa reported me as FRAUDLENT activity! because they consider bill pay is as bad as writing a bad check! ( he said its the same) anyways i get paid through direct deposit and my employer wants my checking account number and i cant find any banks ( in southern caifornia to be exact in Los Angeles / Valencia) that offers a checking for those who are on chexsystem, i even went to wells fargo to get that opportunity checking they said no because its fraud!

i really need a bank asap so i could get paid! and by the way im in the process of disputing but i need a bank now!


Thank you


Submitted by on Thu, 09/03/2009 - 18:42

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2 years ago i had overdrawals at b of a that i never paid that went to collections. Now I really need to open an account with them again because of their bank affiliation abroad, so my question is if I pay off the settlement offer (less than whole amount) could they open another account for me?


Submitted by on Sat, 12/05/2009 - 00:01

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It is very doubtful that they will open an account for you, but your best bet would be to go into a local branch and talk to a manager about it. Do be careful that they may tell you YES they will open an account for you if debt is paid but later the account will be closed by loss prevention/risk dept. Unfortunaetly many times they will not agree with manager decisions.


Submitted by Mary Adkins Matthews on Sat, 12/05/2009 - 23:18

Mary Adkins Matthews

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You should always dispute fraud but with BOA, it is not going to be easy. They are one of the harder banks to deal with when it comes to chexsystems issues.

As far as finding an account there, it is going to be almost impossible with the fraud listed on your report. IN CA, the best thing in that area right now is an account with Fidelity


Submitted by Mary Adkins Matthews on Mon, 12/07/2009 - 00:47

Mary Adkins Matthews

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Most of the bigger banks that you just mentioned also use EWS as well as chexsystems. While some of them now offer second chance checking and others are willing to make exceptions, they will NOT if you have been reported to EWS
Early Warning Services is a limited liability company owned by Bank of America, BB&T Corporation, JPMorgan Chase, Wachovia, and Wells Fargo.


Submitted by Mary Adkins Matthews on Mon, 12/14/2009 - 23:38

Mary Adkins Matthews

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Ive being on chex system for the past three years and have not being able to open an account anywhere, the reson behind it is my exwife diposited a check in our account, at the time, wich turned out not to be a real check with out asking me first, the bank refused the check, close the account and the one to get penalized was me, and not her mainly because I was the primary acount holder. Is there any way that I can dispute this matter?


Submitted by on Tue, 03/02/2010 - 16:53

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Unfortunately you are still responsible for the account no different than if you deposited the check yourself but you can absolutely dispute. Did they report it as fraud?


Submitted by Mary Adkins Matthews on Tue, 03/02/2010 - 18:42

Mary Adkins Matthews

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yes they have reported this, I went to a credit union in victorville california and was denied an account there also, when I saw the lady walking over and asking me to walk to the desk, I saw the paper in her hand and did not even allow her to ask me any questions, just asked her is that a credit chexsystem paper, she replyed "yes" I said thank you for your time and walked out, and this is the kicker, the chexsystem report reads, reported for:suspected fraud activity. Original charge: 0.01 Cents clouser Status: not reported. well A whole cent and well Im ready to give up and wait the remaining 2 years, Im really tired of geting the run around. do you know of any credit unions in my area in specific. thanx for your help.


Submitted by on Sun, 03/07/2010 - 23:42

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If your report is that old, US bank will approve you. Many US bank locations "in store locations" will approve those reported to chexsystems. I have looked up your area and this seems to be your best option there.

Victorville CA Vons Office
12199 Hesperia Rd
Victorville, CA 92395
(760) 241-5346

It has also been reported that they will not even see the report if it is over 3 yrs old. I would give them a try and let me know how it goes.


Submitted by Mary Adkins Matthews on Tue, 03/09/2010 - 21:43

Mary Adkins Matthews

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I opened an account just yesterday online with BOA, someone called me to confirm my identity, Igave all information and when I check my email about an hour later it showed that I was approved! Ive been reading around that they may close the account within a few weeks..how so..if they verify all information.They obviously checked my credit because thay had me confirm things on my report. so if I order checks thru an outside company will that cause my account to be closed? Im confused..and howdo you know if your on EWS?


Submitted by on Sat, 04/17/2010 - 10:10

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Those wishing to obtain consumer report information should contact their Consumer Call Center at 800-325-7775

They generally run the EWS report about a week after the account is opened

Chexsystems has been known in more than one instance to have contacted a bank realizing an account has been opened just from the customer simply ordering checks. There have been times when Chexsystems has even suggested to the bank that they close the account because they felt the customer was a potential risk etc. Here is a [URL="https://www.consumerdebit.com/consumerinfo/us/en/chexsystems/SampleChexCnsrRpt.pdf"]sample report[/URL] from chexsystems that shows the check ordering history on it. So even if you have opened an account at a non-chex bank, it is still very important not to order checks at one of these companies.


Submitted by Mary Adkins Matthews on Sat, 04/17/2010 - 21:06

Mary Adkins Matthews

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OH WOW..Thanks for the info! I know I am on chexsystems for 2 banks but they were about 3-4yrs old. I dont understand how I was approved by bank of america. I went yesterday and even made a deposit without my card yet. Im wondering do they just open accounts get what money they can by your initial deposit,then say there going to close the account and charge a fee. Ive been reading abou tthis happening to people. Im scared now to even keep money in there, dont want to be unable to get it out because accts frozen. Why would they approve, gather all infoand verify then close it?so, where would I order checks from if all goes well with b.o.a? what about the company..checks in the mail? or should I not order checks..???


Submitted by on Mon, 04/19/2010 - 14:50

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Here are some that were found to be safe [URL="http://clickserve.cc-dt.com/link/tplclick?lid=41000000030279319&pubid=21000000000221374"][/URL] Suggestions: Style Checks ,Identity, Checkworks, the check gallery, 4checks, artistic checks, check crafters, promise checks checks in the mail, Costco Checks, Bradford Exchange, lifechecks


Submitted by Mary Adkins Matthews on Mon, 04/19/2010 - 15:56

Mary Adkins Matthews

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You can dispute your chex systems record once you get a copy of it.The number to follow up with them is (800)428-9623 which follows their automated info.You can also visit the website to get adequate information and it will be easy to remove your name from the list.The reports received comprises a summary of information that the banks will inform about you.


Submitted by Rebecca Miller on Wed, 04/28/2010 - 08:52

Rebecca Miller

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Beyond ChexSystems many people with credit problems are having issues getting a credit card machine when setting up a new business and/or merchant account. Some banks are more flexible in terms than others.

With today's society there should be an alternative credit reporting system since so many people are facing credit issues.


Submitted by William Michael on Mon, 08/09/2010 - 11:50

William Michael

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I just opened a savings account with JP Morgan Chase Bank and was accepted. I havent tried a checking account yet as I dont really need one now. I am surprised it let me as no others have because of Chexsystems.

I had an incident with BOA where I was getting my refund checks direct deposited in to my BOA account and I had almost an extra $1000 appear. I am always having different grants etc. to apply for so I thought maybe I had received one I applied for. I went in to BOA and asked them to verify the amount and if this was correct. They told me yes it was. Therefore, I spent the money. A few months later I see this as a negative balance in my account and they are telling me I owe the money back to them. My account is now closed. Who is at fault in this situation? I did my part and asked the bank if the deposits were correct and mine.


Submitted by on Tue, 12/14/2010 - 21:30

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There are a lot of banks which still give you a chance.


Submitted by on Thu, 06/09/2011 - 06:38

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