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U.S. banks and credit unions
report incidents to ChexSystems to protect
themselves and other banks in the future. You
get reported to ChexSystems if your account is
closed for "cause." What is "for cause?" Banks
differ greatly between them as to what valid
reasons are for closing an account. Here are
some examples:
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The bank was unable to
collect for an overdraft, ATM transaction,
or automatic payment which they honored on
insufficient funds.(Regardless of amount,
and often without waiting more than a few
days!)
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Multiple overdrafts.
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Savings account, debit card
or ATM abuse.
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Fraud.
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Providing false information
in opening account.
Each incident stays on your
record with ChexSystems for FIVE full years from
the date the incident was reported.
Getting an incident reported to
ChexSystems is the Kiss Of Death for your
financial future. Most banks now say:
"Our bank
policy is that we will not open a checking
account for you if you have one or more
incidents reported to ChexSystems."
Scary.
Do Banks Open Accounts & Close
Them Later?
YES.
"It seems more common among some
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 more details about this
system and what to do if you get reported ,
Contact one of our highly trained Exodus America
Counsellors who will provide you with
information and resources:
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Chex Systems,
Inc.
7805 Hudson Road, Suite 100
Woodbury, MN 55125
Fax: (602) 659-2197
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Instructions can be heard
by calling:
(800) 428-9623
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Customer service:
(800) 513-7125*, Option 1 for
English,
then Option 5 for customer service.
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