Step : Handling No Response
If you receive no response from the bank, you will have to take it to the small claims court. You will need to pay a filing fee of about $40 for this. Remember, this is not a dispute about whether or not the debt is yours at this stage.
The suit is solely based on the fact that the bank has not complied with federal law in relation to fair credit reporting.
In the majority of cases, the bank settles. Even if it does show up in court, you will most likely win the suit. This is because you have solid proof of the FCRA violation.
How To Get Your Chexsystems Report
If your bank or credit union tells you that they use ChexSystems and that you have a negative balance on file with them, contact ChexSystems to find out where they got this information so you can correct any errors on the report.
You will need to provide some personal information such as:
- Your full name
- The address on the report
- Your date of birth
You can also order yourself a free copy of your report from a nationwide consumer reporting agency online using AnnualCreditReport.com.
Benefits Of Banks Who Dont Use Chexsystems
Don’t Miss: Td Bank Overdraft Fees
Suntrust Bank Essential Checking
SunTrust Bank offers Essential Checking that does not use ChexSystems. There is a $7 maintenance fee but it can be waived if you make 10 or more client-initiated transaction per month, or make $500 or more in Direct Deposits per month or keep a $500 minimum daily collected balance or open as a student and receive a 5 year student waiver.
- Mobile banking and mobile deposit
- $7 monthly maintenance fee
- 10 custom checks starter pack
- Zero Liability Protection
- No-fee access to over 2,000 SunTrust ATMs and 1,200 branches
- Go paperless to avoid the $3 monthly paper fee
What Is Chexsystems Everything You Need To Know
ChexSystems is a consumer reporting agency that runs reports on your savings and checking account history. It is commonly used by banks and credit unions to screen applicants before approving new deposit accounts.
When you apply for a deposit account at a bank or credit union, the institution is likely to haveChexSystems run a report on your negative banking history for the last five years. This is a little like getting a credit report, but it primarily shows derogatory information involving your deposit accounts. Too much negative information can result in a bank blacklisting you, which means you will be denied opening a deposit account.
This guide will explain how the screening system works and help you avoid being analyzed by ChexSystems.
Also Check: Chase Quickpay Electronic Transfer
How To Get Approved For These Banks
The application process for accounts with such banks is straightforward and follows requirements similar to more traditional banks. Follow these steps when trying to get approved for an account:
1. Check the Banks Requirements
- While banks might not perform a credit check on applicants, they do require things like government-issued IDs, social security numbers, addresses, and other personal information.
- Always check what the bank needs from you before signing up to get approved.
2. Go Through Your Credit Report and Dispute Any Error
- Most account denials happen because of poor credit ratings, which stem from less-than-perfect credit reports by the three main credit bureaus.
- Before signing up with a bank without ChexSystems, go through your credit report. If you find any errors, dispute them. If youre successful, you may end up being eligible for an account in bigger and more traditional banks.
3. Choose a Second Chance Bank Account
- A second chance bank account is another alternative where banks with no ChexSystem or credit unions are willing to look past your poor credit.
- Think of second chance bank accounts as the bare-bones version of standard accounts, with fewer features and a limited spending threshold.
4. Think About Using a Prepaid Debit Card
- You might also consider using prepaid cards, which arent linked to a bankchecking account or a credit union account.
- Using this card, you deposit money in advance, and thats what you spend when using the card.
What Does It Mean When You Are In Chexsystems
Because many financial institutions use ChexSystems, theres a decent chance you have a record. But being in ChexSystems doesnt mean you are automatically doomed when you are looking to open a checking account. It simply means your bank or credit union has shared your information.
Many consumers have still qualified for standard checking options despite having a ChexSystems record. The banks decision is based in part on your ChexSystems Consumer Score. The closer your score is to 899, the higher your approval odds.
You May Like: Chase Boat Loans
Not Having A Checking Account In The Past
Banks may also consider whether you have had a checking account in the past, as this is often an indicator that the customer will be able to manage their new account. It can also help banks determine how reliable and trustworthy you are with your finances. If you are wondering, can I cash a check that is not in my name? Yes, but it would not count as checking account history.
How Does The Fair Credit Reporting Act Apply To Chexsystems
The federal Fair Credit Reporting Act states that no one can deny you an account because of information found in your report as long as the information is accurate and up to date. However, the FCRA does not say anything about whether or not a person has a right to know if their information is included in this type of file.
You May Like: Chartway Atm Withdrawal Limit
What Are The Best Practices For People In Chexsystems
Here are the best practices for people in ChexSystems:
- If you have a direct deposit, you should split it between two checking accounts.
- Stay away from supplemental services like Billpay until the time of your ChexSystems record.
- Immediately report any fraudulent activity you may discover on your accounts.
- If you close your account, continue to monitor it for several months to ensure no unpaid charges, fees, or overdrafts.
Boa Reported Me To Chexsystems
Bank of America usually reports any case of suspected fraud. If you fail to clear your name from their ChexSystems report, you are definitely going to lose your account. Not only that, several other banks, including credit unions, will not allow securing an account with them.
You will certainly be begging for a second chance, but it may never come anytime sooner. The best option is to clear fully with the Bank of America for them to delete your name from their ChexSystems.
But if you cleared and they have not done that, then you need to wait for five years. Usually, they update their reports after five years, so certainly they will remove your name as long you had cleared with them.
Read Also: Chase Zelle Limit Per Day
Best 5 Alternatives To Banks That Dont Use Chexsystems
Now you are equipped with full knowledge of what non-Chexsystems banks are and how they can be beneficial. However, if you decide that banks that dont use Chexsystems are not the right choice for you, there are always other alternatives that you explore.
Second Chance Bank Account
These are the bank that do use Chexsystems but are willing to giving you a second chance even if your previous records are doubtful.
These are amazing options to improve your relationship with financial institutes. However, you have to keep in mind that they come with considerable monthly charges.
Prepaid Debit Cards
Prepaid debit cards let you deposit funds and then utilize them for purchases and other requirements. They function much like good credit cards in a sense that they help you manage money.
Moreover, getting approved for prepaid card does not require you to an outstanding banking history.
Secured Credit Cards
You can apply for secured credit cards and make an initial deposit to open the account. They function like any other credit card but are quite helpful in improving credit score if you continue to make monthly payments on time. I
t is even better if you get a preapproved mail offer. In this case you can apply and get approved for the credit quickly.
Foreign Bank Accounts
If you are having trouble getting bank approval in the US then you should consider opening a foreign account.
Online Banking Services and E-Wallets
Langley Federal Credit Union
Langley is another credit union that doesnt use ChexSystems. They are located in Virginia, but membership is open to customers in all 50 states.
You must first open a share savings account with a minimum deposit of $5 before you can open a checking account. There are no minimum balance or monthly service charges. In addition, they offer free online and mobile banking, free online bill pay, and access to 55,000+ Allpoint ATMs Nationwide.
Account-holders can also get paid up to 3 days early with direct deposit.
Also Check: Chase Bank Boat Loan Rates
How Long Do You Stay On Chexsystems
Usually five years. Although federal regulations allow ChexSystems to keep records for up to seven years, the agency keeps them for five.
If you review your report and see any incorrect or out-of-date information, you can also submit a dispute on ChexSystems’ website and with your financial institution.
Best Banks That Dont Use Chexsystems
Current is one of the fastest-growing mobile banking solutions in the U.S., with over one million members. However, Current is a financial technology company, not a bank. Most importantly, Current does not use ChexSystems or pull your credit report.
Some features of the Current mobile banking account include fee-free overdraft protection of up to $100, 40,000 fee-free Allpoint ATMs, and no minimum balance or hidden fees.
You can get paid up to two days early with direct deposit. And you earn up to 15x points and cashback when you use your Visa debit card at participating merchants.
Looking for more options? Check out the complete list here.
Also Check: Burner Phone For Venmo
Douugh Banking Douugh Spend
Douugh Banking was founded in 2016 with the goal of developing a new banking model centered around software that will help you achieve your financial goals.
Douugh uses an AI-first approach to help you spend wisely, save money and invest. This is one of the best checking account to help you automate your finances and organize your money. Douugh will not impact your credit score.
Bank Of America Chexsystems Phone Number
In most instances, individuals who want to clear their names from ChexSystems reports by the BoA search for a number that they can use to contact agents of ChexSystems to be aided.
Well, if you are such as a person, you should be using this number at all times- 800-428-9623.
The number is operational 24/7, but due to traffic, you may find it hard to get in touch with the agents. Hence, if you encounter such an incident, you can always reach out to the Bank of America customer care team for assistance. Use 000 1 315-724-4022 to contact the care team at all times.
References for BoA ChexSystems
Recommended Reading: Ibc Deposit Express
How Long Does It Take To Dispute Chexsystems
The Fair Credit Reporting Act requires consumer reporting agencies and original creditors to conclude dispute investigations within 30 days. But ChexSystems has an additional 5 business days thereafter to send dispute results.
If the consumer sends additional information during the dispute investigation period, the consumer reporting agency may extend the dispute period an additional 15 days. Plus, if you dispute based on the information you received via the free annual disclosure, ChexSystems has 45 days after the date on which the dispute is received to complete the investigation.
If ChexSystems does not comply with the time periods, they are in violation. You can file a complaint with the Consumer Financial Protection Bureau if you think a violation has occurred concerning dispute investigation time periods.
Are Credit Reports Part Of The Review Process
Sometimes a bank will require a credit report. Banks might want more information than just banking history before approving a new customers account, including credit reports.
If a bank offers a checking account with a credit option such as an overdraft line of credit, for instance, it might request credit information. Banks can either pull a persons credit report from one of the major credit reporting bureaus or get additional information that ChexSystems provides.
Recommended Reading: Transferring Stimulus Card To Bank Account
What Disqualifies You From Opening A Bank Account
Getting denied a checking account for a variety of reasons might have included bouncing checks or overdrafts in the past. Fees not paid or negative balances from closed or current accounts. Identity theft or fraud suspected. Accounts that were initially filed over a short period of time resulted in too many account applications.
Can You Dispute Chexsystems How To Remove Items From Chexsystems
Suppose you believe that your ChexSystems report is inaccurate. In that case, you have a right to dispute it with both ChexSystems and the Bank which reported it. Under the Fair Credit Reporting Act , ChexSystems must find any disputes and remove incorrect items, if any.
When you find that there is an incorrect item in your ChexSystems report, you should take steps to have it removed. The process for removing an item from your ChexSystems report is similar to getting a mistake or inaccuracy deleted from your credit check report.
Recommended Reading: Edit Bank Statement Pdf Online Free
Chexsystems Record Can Remain Up To 5 Years
Without some type of leverage like a reporting inaccuracy, FCRA violation or pay for delete negotiation, ChexSystems records are difficult to delete. Because ChexSystems records can remain up to 5 years, you may need to find a bank that does not use ChexSystems if you are currently unbanked or using a prepaid debit card only.
You have a right to freeze ChexSystems reports but that does not remove negative records. With a ChexSystems freeze When you put a freeze on your ChexSystems report they will not release any information in your consumer file without your expressed authorization.
Banks and credit unions that use ChexSystems will receive a message indicating that you have blocked your information. At that point a bank can simply deny opening a new account for you. Or, the bank could pull an Early Warning Services report to determine approval.
What Proof Is Acceptable
ChexSystems should provide a variety of proof, including a copy of the initial banking contract and a copy of the canceled check. If the proof isnt offered the concerning information will need to be removed from your report.
Still, ChexSystems can have a complicated dispute process when you dont understand it fully. For this reason, weve created a guide, and letter templates, to help you easily get your bearings on the process.
The information provided can be adapted to your personal situation considering financial situations are mostly unique to the individual. If you believe you might need legal advice, get in touch with an attorney who specialises in this area.
Starting the ChexSystems process of removal has the potential to get unproven or erroneous information removed from your ChexSystems report permanently. After this, you should be able to open a bank account again without any obvious problems.
If you were denied a checking account, here are four simple steps you can take now.
Don’t Miss: Chase Boat Financing
Best Banks That Dont Use Chexsystems 2022
To support our editorial teams mission, we may receive compensation from the products or services mentioned. Learn about how we make money.
If you have ever made a financial mistake in the past and it has hurt your credit score significantly, then you might find it difficult to open a checking account at a new bank in the future. Banks keep a tab on customers financial historys using a program called ChexSystems. If you have a bad mark on your history, then it can keep you from opening a checking or savings account.
So to help you out, we put together this comprehensive list of the best banks that do not use ChexSystems. These banks are known as second chance banks and offer accounts for those who need a fresh start.
Having No Credit Or Bad Credit
Having no credit is not normally viewed as a negative factor, but no recent history of checking account activity will likely impact your ability to open a new account. If you have had bad credit in the past, it may also affect whether or not you are able to open a bank account. Many banks require that all signers on the account have no recent history of bad credit.
Read Also: Www Activate Bankofamerica Com
Does The Bank Of America Give A Second Chance Credit Card
Although you may find it challenging to get a second chance credit card with no security deposit at the Bank of America, you can get numerous secured credit cards at the bank that can help you push your credit scores high. Most of the Bank of Americas unsecured credit cards require at least a fair credit score of 750 and above.
Some of the credit cards available at the Bank of America include Bank of America® Cash Rewards Secured, BankAmericard® Secured, BankAmerica® Cash Rewards for Students, Bank of Americard Travel Rewards® for Students, Bank of America® Premium Rewards®, and Susan G. Komen® Cash Rewards Visa® credit among others. Most of the credit cards have cash backs and rewards and thus very beneficial to the holders.