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What happens with an overdrawn checking account?

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Posts: 21
Credits: 2989.1

My checking account closed in May because it was overdrawn and I couldnt put the money back in right away. The collections department sent a letter and we made arrangements to pay $100 every two weeks. That turned out to be too much, but they wont set up any other type of arrangement. If I let this go too much longer will they send it to a third party collection agency or will they sue me? I'm in Missouri, and the bank is Commerce bank

I think in some ways you have answered you question. It very well may depend on the amount the account is behind how they handle it. If could be dealt with in a few ways. If the amount is not very high they are more likely to send it to a collections agency. If it is high they might file a suit to try and garnish your wages. You also want to consider some of your state laws.. depending on the circumstances and how it happened you might want to be sure they are not going to attempt to accuse you of Check fraud or Check deception. I am not trying to scare you or anything but I want you to be aware of all the things that are out there. It is more likely that when their collections department has had enough of it they will farm it out or sell it for a reduced amount to another collections agency and then they will attempt to collect the debt from you. Try and send them something. even thought he amount is too much try to send the some money every two weeks to pay it back. Should it ever come to a court issue you can show that even though you have not been paying the amount you have been making an effort to pay it down the best you could. This might also keep them from pursuing any other options and they will keep it internally.


Sub: #1 posted on Thu, 11/30/2006 - 20:12

kledford kledford

(Posts: 11 | Credits: 3.27)

Thanks Kyle
I'll try to do that. The other thing I've been doing is calling in every couple weeks, to make sure they know I have not forgotten.

Sub: #2 posted on Thu, 11/30/2006 - 20:48

jeffc762 jeffc762

(Posts: 21 | Credits: 29.89)

I had the same thing happen to me and they just sent it to a few CA's and then it went back to the recovery department for the bank. They are really nice and are letting me pay $25.00 every month...

Sub: #3 posted on Thu, 11/30/2006 - 20:57

natdust20 natdust20

(Posts: 1345 | Credits: 164.28)

This is only a little over $1000. I'm trying to get funds from my retirement account to pay it.

Sub: #4 posted on Thu, 11/30/2006 - 21:15

jeffc762 jeffc762

(Posts: 21 | Credits: 29.89)

My balance is $981.00 and it's with BOA..

Sub: #5 posted on Thu, 11/30/2006 - 21:16

natdust20 natdust20

(Posts: 1345 | Credits: 164.28)

What is BOA? Bank of America?

Sub: #6 posted on Thu, 11/30/2006 - 22:07

jeffc762 jeffc762

(Posts: 21 | Credits: 29.89)

Banks are very quick at reporting overdrawn accounts to Chexsystems, which will stay on file for 5 years, and it will stop you from opening a new account elsewhere. Pay something on it as often as you can so they will see you are trying to take care of the situation and not avoiding it, and they may not report you to Chexsystems.

Sub: #7 posted on Tue, 12/05/2006 - 06:56

brownsugar brownsugar

(Posts: 1389 | Credits: 149.35)

Is there any way to find out what you have on your chexsystems file? I had an account close last year and they said they took it off once I paid the accounts debt back, but I would like to be sure. Any help would be appreciated.

Sub: #8 posted on Tue, 12/05/2006 - 07:06

Doc Doc

(Posts: 9 | Credits: 3.29)

I could be wrong, but I believe once your debt is paid to the bank or collection agency, they just update the file as being "paid." If that is the case, it will stay on your file for 5 years from the time it was reported, but it will show as being "paid."

Sub: #9 posted on Tue, 12/05/2006 - 07:18

brownsugar brownsugar

(Posts: 1389 | Credits: 149.35)

Here is some info I found about Chexsystems:

National Check Fraud Center
ChexSystems Information and Guide

What is ChexSystems?
ChexSystems provides deposit account verification services to its financial institution members to aid them in identifying account applicants who may have a history of account mishandling (for example, people whose accounts were overdrawn and then closed by them or by their bank). ChexSystems is also licensed to do business as ChexSystems Collection Agency providing debt collection services to members participating in this service.

Is ChexSystems a credit bureau?
ChexSystems is a consumer-reporting agency governed by the Fair Credit Reporting Act (FCRA) and other laws. ChexSystems Collection Agency is a debt collector subject to the Fair Debt Collection Practices Act (fdcpa) and other laws. The Federal Trade Commission enforces the FCRA and FDCPA.

How long does the report stay on file?
How do I get it deleted?
Each report submitted to ChexSystems remains on our files for five years, unless the bank or credit union that filed the report requests its removal or ChexSystems becomes obligated to remove it under applicable law. The decision to delete a report is entirely up to each bank or credit union and its individual policies.

I paid the bank. Why wasn't the report removed?
A reporting member is under no obligation to remove an accurate report of account mishandling due to payment of monies owed. However, if a collection amount is reported, the member is obligated to mark the account as paid.

How can I see what is in my file?
You can order a copy of your report from ChexSystems.

How do I dispute information?
ChexSystems Consumer Relations Department helps people who believe their file contains misinformation. Visit disputes for more information.

Why do I have to give you personal information, like my social security number and drivers license number?
ChexSystems ask for this information to ensure that they make a complete and accurate search and are able to identify all information that may pertain to you.

Why did you tell the bank not to open an account for me?
ChexSystems neither approves nor declines accounts for banks and credit unions. The decision is entirely up to them.

Why wasn't my ChexSystems report removed when I filed bankruptcy?
A bankruptcy filing only affects the collection of outstanding debts. It does not require the removal of accurate factual information concerning your account.

Why can't I get a copy of my spouse's report?
ChexSystems is required by law to deal directly with the individual to whom the information pertains. They strictly adhere to this to protect consumer privacy. To discuss the information with anyone else, ChexSystems must receive a notarized Power of Attorney or specific written instructions, signed by the consumer whose information is being requested, authorizing ChexSystems to disclose the information to the person named in the Power of Attorney.

What does NSF activity mean?
NSF ???? or non-sufficient funds ???? activity refers to overdrafts that occur on an account.

Do I pay ChexSystems or the bank?
It depends. If your report contains a record of an outstanding debt and you have received collection notices from ChexSystems Collection Agency, you pay ChexSystems Collection Agency directly by sending your check or money order to:

Attn: Consumer Relations
7805 Hudson Road, Suite 100.
Woodbury, MN 55125
In other cases, you pay the bank or credit union directly.

How do I add a statement to my file?
You are entitled to add a brief statement to your consumer file describing the nature of your dispute of the information. If you wish to add a statement to your file, you must submit your statement in writing with a clear indication that you wish the statement to be added to your file, ensuring that you sign the request. If you would like assistance in writing a clear summary of your statement, you may contact ChexSystems or obtain the assistance from your Attorney.

How do I contact ChexSystems?
Consumer Relations
(Recording only-Instructions)

Attn: Consumer Relations
7805 Hudson Road, Suite 100.
Woodbury, MN 55125

Inquiry about negative information on file:
Information you will have to send if you have been rejected by a bank or you have received notification that there is negative information on file that shows you still owe a bank money.

Either send your request in writing or by fax. Make sure you have available the following information to submit to them:

your full name and any alias names used
your current and prior address (5 years)
your social security number
your driver license and/or ID card number
any business you signed on during the pass 5 years.
We hope that you can resolve your personal problem. If we can assist you further, please contact this office by phone, e-mail, or in writing.

Order your own PERSONAL CONSUMER REPORT from ChexSystems.

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

Sub: #10 posted on Tue, 12/05/2006 - 07:22

brownsugar brownsugar

(Posts: 1389 | Credits: 149.35)

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