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close bank acct - report to check systems???

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ok, so I'm overdrawn because of the pdl's and my bank says they are closing my account and because of the amount it will be reported to check systems (sp?)

can someone please educate me - what does it mean to be reported to this check system?

I already have an account at another bank, so that part I'm not too concerend with.

they said once I pay it, they will update the system,
but what else?

thank you!




Unregistered

Sub: #1 i also had that sameproblem. thing is that your new bank will fi
Wed, 11/07/2007 - 11:37

i also had that sameproblem. thing is that your new bank will find out that you are on chex system, cause they look at the reports, and they will close your account.Yiu can not get an account for 5 years whikle you are on chex system




goudah2424

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Sub: #2 Yes, that is true. Some banks will do "sweeps" on new accounts
Wed, 11/07/2007 - 11:45

Yes, that is true. Some banks will do "sweeps" on new accounts and find your chexsystems report. Normally they will then close your new account.

Chexsystems is a consumer reporting agency, kind of like a credit bureau. The item will stay on your report for 5 years. Once the item is paid, it will show as paid, but will stay on the report.




Mary Adkins Matthews

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Sub: #3 what is chexsystems?
Wed, 11/07/2007 - 12:36

ChexSystems is.....


a check verification service and consumer credit reporting agency like Experian, Equifax and TransUnion. While most credit reporting agencies broker data about how a consumer handles credit relationships, ChexSystems provides data related to how a consumer has handled deposit accounts at banking institutions. "ChexSystems" is a registered service mark of eFunds Corporation headquartered in Delaware and was previously registered to "Chex Systems, Inc


Once on chexsystems, your name will remain on file for 5 years unless you file a dispute and there is no guarantee to be removed even with dispute. Paying the bank will NOT remove you from chexsystems. Many people believe and are even told it will but it will NOT.

The reporting bank is the ONLY one that can have chexsystems remove you and 9 time out of 10 the banks will NOT.




What do banks consider Fraud


This is yet another vague Chexsystems entry flag. "Fraud" means whatever the reporting bank wants it to at the time.

Here are some recent examples I have seen reported as "fraud" with different banks:

1) Elderly person falls victim to a pigeon drop scheme and deposits a phony money order in her account for $5,000. This individual is 74 and has maintained the account in good standing for over 25 years without a single overdraft. Her account is closed and she is reported to Chex systems for "fraud", causing her monthly Social Security payment to be returned. What was aggravating is that she also had an investment account at the bank with over $11,000 in it.
(Well Fargo)

2) An employment dispute caused the accountholder's employer to issue a stop payment on a payroll check, resulting in over 400 of NSF charges. The account is closed and reported to Chex as fraud. (Compass Bank)

3) Small auto dealer sells a car, depositing a cashier's check for $6500. At the time of the deposit, he asks for $1000 back in cash. The dealer has owned the business for 22 years, and keeps a large average balance in the account. Because the cashier's check was a forgery, he is arrested on the spot, the account is closed and reported to Chex as fraud.
(Chase Bank - formerly Bank One)

If you have been reported to Chex for fraud, but you did not commit an illegal act, then I say make them prove and justify it.

It was later determined that these individuals were victims themselves and no charges were filed. In the case of the stop payment, the individual has hired an attorney. The employer may have violated state law for refusing sales commission payments. All three are still trying to get the fraud entries removed from Chexsystems.




Mary Adkins Matthews

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Posts: 755
Credits: 14679.780979602

Sub: #4 As far as a new bank closing your account, it really depends on
Wed, 11/07/2007 - 14:37

As far as a new bank closing your account, it really depends on what bank it is. Yes goudah is correct some banks like WAMU, Wells Fargo etc will do sweeps and periodically run checks on customers that are in good standings. But again it really depends on the bank.

Another thing to look out for is when ordering checks..same situation can occour

Did you know that when you order checks from Deluxe or one of their subsidaries, that they send personal information to Chexsystems and to Deluxe's collection agencies? They send your acount number, address, phone number, and more. Do not order checks through Deluxe, Current Checks, Designer Checks, or Checks Unlimited. They also send information to other companies such as Debit Bureau, EFunds, and SCAN.

The Style check company seems okay and it does state that they keep all information confidential. Just always make sure that it isn't owned by Chex. They also keep information on file such as your account number, check numbers etc. Be Careful is all I am saying because there have been people who ordered checks and then chexsystems contacts thier bank realizing they have an account to let them know they are on chexsystems. Some situations where accounts were closed just from ordering checks.



Suggestions: Clarke American, Style Checks

2 others


Thank you for your inquiry. The answer is no, Liberty is not owned by
Deluxe, we are a private employee owned company. If you have any
further
questions please feel free to email again.
Sincerely,
Diane Schlichting
Liberty Customer Service

---------------------------------------------------------------------- ------


Thank you for contacting The Check Gallery. No, we are not affiliated
with Deluxe Corp. If you have any further questions, please feel free
to email me again. Thank you.
Sincerely,
Kira
Customer Contact Representative
_________________




vanryankelly
Posts: 84
Credits: 2630.75

Sub: #5 thanks everyone for the info! my new bank is wacovia, and I'l
Thu, 11/08/2007 - 06:51

thanks everyone for the info!

my new bank is wacovia, and I'll say they have been great so far....unlike wells f***you :evil:




Mary Adkins Matthews

Debt Samaritan
Posts: 755
Credits: 14679.780979602

Sub: #6 Just be cautious with wachovia as well. Sometimes they will open
Thu, 11/08/2007 - 10:01

Just be cautious with wachovia as well. Sometimes they will open accounts then close them at a later time if you are reported to chexsystems. generally this is if there is " fraud " indicated on the report or a large amount of money is owed to another bank




Unregistered

Sub: #7 MCA question on Wachovia
Thu, 11/08/2007 - 14:42

Quote:
Just be cautious with wachovia as well. Sometimes they will open accounts then close them at a later time if you are reported to chexsystems. generally this is if there is " fraud " indicated on the report or a large amount of money is owed to another bank


I was wondering if they close the account can u get your funds from the account? I just opened my account with Wachovia it's the At Work program and just worried if I direct deposit my checks will they close it and I lose my money? My accounts with WAMU did that and it really made me mad b/c there was more then enough to cover the one negative account between the savings and my other personal account and they kept that money and closed those accounts as well as the account that was in the negative and it shows on chexsystem that I owe $576 and it says account abuse and over draft on it. Wondering if I should change my direct deposit to my USAA account that I just opened.Now I'm kinda worried about the whole thing. At least I know my direct deposit wont hit until the 30th so I have enough time to change it.




Mary Adkins Matthews

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Credits: 14679.780979602

Sub: #8 Shannon, yes you would be able to get your fund in the account
Thu, 11/08/2007 - 14:54

Shannon,
yes you would be able to get your fund in the account back if they decided to close it. It sounds as if you will be fine. I know people are really upset when accounts are closed because although they will get the money in the account, most times banks will hold it for a brief time to make sure nothing else is going to come through on the account.

I believe the only thing I have hyeard about Wachovia closing accounts is when " fraud " was indicated




Unregistered

Sub: #9 fraud
Wed, 11/14/2007 - 08:01

I am on chexsystems one time from Bank Of America listed as Account abuse, is this considered fraud?

thanks




Mary Adkins Matthews

Debt Samaritan
Posts: 755
Credits: 14679.780979602

Sub: #10 cluelessnomore Good to see you here :) ...no account abuse is
Wed, 11/14/2007 - 08:07

cluelessnomore
Good to see you here :) ...no account abuse is not the same as what they call
" fraud " or generally they will call it ' suspected fraud "




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