URGENT-Sovereign Bank overdraft Options

[puppies44]

If you incur a checking account overdraft at Sovereign Bank, and you replenish your account that day with cash to overcome the overdraft, will it still show up on your chexsystem report?

[Googie]

[mca]

no, I highly doubt that they would report for such a thing but anything is possible. I have known of a few banks that report every NSF in the past but Sovereign is not one of them

[puppies44]

There are a bunch of checking and savings accounts that give bonuses/rewards for opening an account. I want to open a bunch of these and I'm wondering, if you have one or 2 overdrafts on your chexsystems report in the past few years will that affect your chances of the banks letting you open a bunch of accounts? The overdrafts were paid by me, I did not ever default on anything I owed the banks.

I wonder if the overdrafts were even reported (they were with Sovereign).

By the way, is there any way to get an instant online viewing of your chexsystem report or do you have to wait 10 days for it to come in the mail? If you want more than one chexsystems report per year, how much does it cost and who do you pay?

thank you mca for your website and for being such an asset to this forum

This post has been edited by puppies44: Feb 19 2009, 10:12 AM

[puppies44]

I have another question. If the checking account is a joint account, and it does get reported to chexsystems, would the overdraft get reported to each person on the account's chexsystems report? or just the account holder who has their social security number on the account?

[mca]

You have to get the report by mail only. And yes it is only one per year unless you are denied an account at a bank or credit union. Here is where you order the report. https://www.consumerdebit.com/consumerinfo/us/en/index.htm


Yes having one of 2 reports can stop you from approved at some banks and credit unions. Some are extremely strict and if there is anything on the report at all, they will deny. Of course there are some that look at the report and determine how serious it is and make the decision case by case. Having the reports paid and only being NSFs will help you greatly. Then there are some that do not use chexsystems at all.

For your second question

I have another question. If the checking account is a joint account, and it does get reported to chexsystems, would the overdraft get reported to each person on the account's chexsystems report? or just the account holder who has their social security number on the account?

Again it depends on the bank but MOST banks that report to chexsystems will report all account holders if they decide to report an overdraft. If you were added to the account and never gave them your social security number or DL number then I suppose they would have a very hard time reporting you at all, but most banks will not add anyone unless proper identification is made.

[puppies44]

thanks. The account was opened in my name and my parents. Nobody was added after the fact. During tax time I get the 1099, I think because I am the primary account holder. I do not know if they even have my parents' SS# numbers. Would they have required my parents' SS# during the account opening process even if they are not considered primary account holders?

I especially do not want it to report on my parents' chexsystems report. I do not want it to affect their ability to refinance a mortgage among other things. I know it shouldn't , should it? In these economic times I'm somewhat paranoid.


By the way, when you are opening new accounts, I thought banks would see it as a good thing that you have NSFs that you paid on your chexsystems report. This means you are the type of customer they can milk more fees out of.

This post has been edited by puppies44: Feb 19 2009, 11:19 AM

[mca]

yes if they added your parent then they more than likely obtained their information and socials as well during the account opening process and if they report you to chexsystems then your parents would be reported as well

It the overdrafts were paid right away, it would not hurt your parents credit at all. It would only be reflected on their chexsystems report. And no, most banks will not see that an NSF on a chexsystems report is a " good thing" most will still deny you. Of couse NSF is the best thing that can be reported on a chexsystems report so there are many that will allow the account to be opened anyhow, especially when the report shows that nothing is owed to the reporting bank.

How old are your reports?

[puppies44]

how old are my chexsystems reports? I incurred one overdraft charge with Sovereign today. Do you think it will make a difference whether I replenish the account today or tomorrow (i.e. as far as whether they will report it to chexsystems. maybe they won't if I pay it the day I incurred it?)

I have 2 checking account overdrafts with them that occured about 3 years ago.

[mca]

Which bank(s) have reported you to chexsystems already? I thought Sovereign already reported you in the past for NSF as well??

[puppies44]

I talked to a Sovereign customer service representative who said that they don't report to Chex Systems unless the overdraft persists for over 30 days. Is that a common policy banks have? It's good news but I'm not sure about it because I know that reps on the phone can sometimes be wrong.

[mca]

I know of some banks that report every NSF that there is. But yes if they said they won't reprot you for 30 days then that is good news