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roxakin

Chexsystems question regarding bank account clousure

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Hey,

Recently I had a joint account with my fiance. I noticed that there was a bank closure due to a negative balance. We went and paid it off however the chexsystems report was made. It is not our only accounts as we have had individual accounts for quite some time (4+ years) and it was an insignificant amount.

 

I read that if a bank account is closed with a negative balance even though its paid off it stays for 5 years, however, are we barred from ever taking a loan/opening a bank account/etc.? for now? Really concerned about this, please help. Also, will our individual checking accounts/savings be affected?

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On 11/19/2018 at 10:18 PM, roxakin said:

Hey,

Recently I had a joint account with my fiance. I noticed that there was a bank closure due to a negative balance. We went and paid it off however the chexsystems report was made. It is not our only accounts as we have had individual accounts for quite some time (4+ years) and it was an insignificant amount.

 

I read that if a bank account is closed with a negative balance even though its paid off it stays for 5 years, however, are we barred from ever taking a loan/opening a bank account/etc.? for now? Really concerned about this, please help. Also, will our individual checking accounts/savings be affected?

Depending on where you live, you can check out the list of banks that dont use chexsystems.  Some banks will allow you to open an account if you can show proof that a prior debt was paid in full.. The negative reporting does stay on 5 years. You can also ask the reporting bank to update your chexsystems as paid. The only time individual accounts would be affected is if a bank would run a chex sweep, meaning that they would randomly run chexsystems to stay in compliance with federal guidelines. At that time, the bank decide to close the account for prior banking activity. Chase and a few others are known to do that. 

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So any banks using the chexsystem. Even though the amount which was like not even a lot, was paid in full. Will deny a loan for school or something like that? And my accounts which have been active for 4+ years with no negative balance or anything will be at risk? Furthermore I cant open any new banks? The bank in question, we paid it in full which they will report. However, they told us to write a letter to chexsystems to possible have it taken off, but I feel like we’re just getting our chain yanked around and getting screwed for a minor mistake.

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1 hour ago, roxakin said:

So any banks using the chexsystem. Even though the amount which was like not even a lot, was paid in full. Will deny a loan for school or something like that? And my accounts which have been active for 4+ years with no negative balance or anything will be at risk? Furthermore I cant open any new banks? The bank in question, we paid it in full which they will report. However, they told us to write a letter to chexsystems to possible have it taken off, but I feel like we’re just getting our chain yanked around and getting screwed for a minor mistake.

I will be the first one to admit, I have a horrible chexsystems record... I have been in chexsystems since 2006 and still to this day. I had bad business deals and partners go bad through out the years and so now I work solo. I have been able to open accounts while in chexsystems like at Woodforest National Bank, US Bank, 5/3 Bank, PNC Bank. small local credit unions. Most of the banks and the people who work there all know me really well due to the nature of my business and so they are all aware of my past banking and overlook it as I have managed these account for years with no problem.   Another option is to try Washington Savings Bank in Lowell, MA as they offer rewards checking and can apply online. another one is Valley Bank of Helena in MT. They have an online application and i did business with them as well with no problem.  One or 2 chex entries wont bar u forever from a bank. In fact some only go back 2-3 years. 

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Thank you for the input. Currently I have a td bank and chase (chase has been opened for 4+ years) and my wife has a chase. Will these be affected? I know its based on a score so im wondering if these help?

 

furthermore the bank never contacted us in regards to closure, do they have to? I heard that if an account is negative its possible to negotiate to have it removed for debt paid. However since we paid is there a way to still speak with like a bank manager for removal? 

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Standard account terms generally mean a bank or credit union can close an account if the account terms are violated. They don't have to notify you prior to freezing or closing.

Chexsystems has been known to send new negative entries to subscribers. Depending on the services they purchased, Chase and TD may get the negative update to your file. If so, it will be up to their loss prevention sections whether they freeze or close your open account. Anytime you're on Chexsystems, its always a good practice to keep a non-Chexsystems backup account.

**When you have negatives in Chexsystems, never keep all your funds - or a direct deposit in a single account. It can be disasterous if your funds are frozen or the account abruptly closed.

Negotiating removal is usually done before paying the account balance. Once you pay, there is no incentive for them to delete the entry. You can try speaking to a manager or executive, but there are no guarantees. However, they should update the entry to a PAID status. As stated earlier in the thread, many banks and credit unions will approve a new account if Chex shows money owed has been paid.

Edited by tmcgill

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