Getting a bank account after Bad Checks

What is the name of your state? Maine



I have not had a checking account for about 2 yrs. Due to a messy divorce and an ex-husband who was creative with a check book that I ignorantly forgot and left behind, I have recently descovered that I have bad checks against my name. I am not sure of the exact amt of all of the checks, but I have contacted ChexSystems and they are sending me a report. I just want to pay them off but are kind of unsure how to do this. I recently came into a large sum of money and want to open a new account. Do you think that banks will work with me to try and pay this off upon opening the new account? Do you know of banks who are willing to do so? I am not looking for a way arround the ChexSystems...I really just want to take care of it. Do you know how long it usually takes to clean up bad checks?

Thanks
Amadna

Paying the bad checks will not get you removed from ChexSystems unless you negotiate with the creditors for a "pay for delete". Items listed on Chex stay for 5 years.

US Bank has a 2nd chance checking program. You might also be able to obtain an account through a local credit union.

When Chex sends the report to you, there should be payment instructions included with the mailing.

There is no way around Chex. The money that is owed for bad checks is owed to them. Once you pay it though, you will still be on ChexSystems for 5 years total. If you go to a bank and they use ChexSystems (which most do) they may decide to not open an account for you. It is entirely their decision though. Some banks are stricter than others, so I suggest going to a smaller bank. Large banks (i.e Citibank, Bankamerica, US Bank, Bank One, Wells Fargo, etc) tend to be less flexible then a FI which is local only. Less Bureaucracy.

ihatearizona said:

Paying the bad checks will not get you removed from ChexSystems unless you negotiate with the creditors for a "pay for delete". Items listed on Chex stay for 5 years.

US Bank has a 2nd chance checking program. You might also be able to obtain an account through a local credit union.

Click to expand...

As far as I know there is no "pay for delete" on bad checks. This is usually for items on a Credit Report. ChexSystems is not on a person's credit history, so it works a little differently.

BTW, only a handful of US Bank regions offer that program. I know they do not offer it in my state and others.

Actually, ChexSystems is a CRA just like Experian, TransUnion, Equifax.
You can try for a pay for delete just like with any other credit report entry.

No, ChexSystems is not a "credit" reporting agency like TransUnion et al. They are a "consumer" reporting agency, and while they are governed by the FCRA, they don't report credit problems, and nothing on Chex shows up on your credit history.

ChexSystems is actually a network of participating FIs, that regularly report to a central location, consumers who mishandle checking and savings accounts. This info is shared among the FIs to help them limit their risk exposure. Here is what they say about deleting items off of their system:

Each report submitted to ChexSystemsSM remains on our files for five years, unless the bank or credit union that filed the report requests its removal or ChexSystemsSM 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.

So, there is a tiny window in there, where it could happen, but in my x number of years in banking, I have never actually seen anyone get their items deleted.

To the OP: Your best chance is to pay off the amount owed, and then find a bank or credit union that is willing to take a risk on you. Banks will not take you off of Chex. It defeats the purpose of the network.

But if you can catch the bank in FCRA reporting errors then you would have leverage to have the item(s) removed.

ihatearizona said:

But if you can catch the bank in FCRA reporting errors then you would have leverage to have the item(s) removed.

Click to expand...

Agreed.

So even after 5 yrs it won't come off?

At 5 years from the date it was reported to Chex it will be removed from Chex.

Free Non ChexSystems Banks

After reviewing many of these chexsystems help sites, I've found a couple that really stand out.

www.chexsys.tripod.com : They are free of charge, have a huge list of banks, and offer many pages of advice for people caught in chexsystems. This website is more popularly called "ChexSystems Bites", and if you'd been on all the major forums, you've seen it before.

www.icreditsolution.com : This website offers a concise, yet straight to the point help with chexsystems. They also have a free list of non chexsystems banks which is broken down in chart style.

www.cardreport.com : They have a free list non chexsystems banks, but is quite small compared to the two above.

There are others, however, many of them require some form of membership or charge a fee for their services.