Skip the bank and go direct! If you havedirect deposit, then you can get a debitcard provided directly byecount orDirecto.For Directo -- you would want to contact youremployer's Human Relations department tosee if they use or will consider using Directo.The Federal Reserve ispromoting Directo even.
Additionally, banks themselves are starting tooffer these -- as reported inthis April, 2002 article as well as this olderAugust, 2001 article. The interestingitem is that they are considering offering"convenience checks" for use at merchantswhere debit cards are not accepted for payment.That's more like it!
#3Overdraft protection? Re-apply without it.
Sometimes people are denied an account only becausethey had indicated on their application that theywould like the overdraft protection option.When your application includes this request, the bankwill often verify your credit in addition toverifying your ChexSystems record. If you haveboth bad credit and a negative ChexSystems record,then the bank is more likely to reject your application.If this could be what happened, then you will wantto simply leave off the overdraft protection requestand re-apply.
But consider this: the computer systems usedat some banks know if you've already applied recently,and will reject any additional applications automatically.This may be the case at just the one branch where youapplied, or it may work this way at all of the bank'sbranches. At the same time, you need to be awareof the fact that each time a bank or credit unionrequests a copy of your record, that request is talliedat ChexSystems. If ChexSystems sees three or morerequests in the past ninety days, then that fact alonecarries the same weight as a negative "closed for cause"record.
#4Open a Savings Account first.
Some banks don't check with ChexSystems when youare only opening a savings account.See ourHall Of Shamefor a list of banks to avoid.Having a savings account makes many optionsavailable to you through services such asPayPalwhich use EFT (Electronic Funds Transfer)and ACH (Automated Clearing House) transactions.
#5Closing Time.
Do you like working late? Neither does theaccounts clerk at your bank. Arrive 10minutes before closing time. Sometimesthe person taking your application will cutcorners and might skip the step involvingdoing a verification with ChexSystems.The smaller the bank, the more likely thiswill work.
#6Request an "offline" verification.
When a bank verifies you using ChexSystems'online program, it is a "big net" type ofsearch. Inform the clerk at the bank thatyou believe ChexSystems is mistaken, and thatyou wish to request an offline verification.The search to obtain your record in an offlineverification is more specific as it is performedmanually by a [generally quite stupid] human atChexSystems instead of by a computer.Done this way it is more likely that yourincident, or incidents of others whose namesare somewhat similar to yours, will not befound. If you suspect that you have become avictim of identity fraud (e.g., your recordshows incidents reported by banks that you'venever done business with) then you can callthe FTC Identity Theft Hotline at(877)438-4338, and the Social SecurityFraud Hotline at (800)269-0271.
#7Have your spouse apply separately.
ChexSystems may not be able to match bothspouses to the incident. Have one spouseapply for an individual account (i.e., nota joint account) and leave out mention ofthe other wherever possible.
If denied, then go to a different bank or differentbranch, and have the other spouse applyfor an individual account.
Then once you have an account and have a historywith the bank, they might be willing to convert theaccount to a joint account -- even if the secondperson on the account has a negative ChexSystemsrecord. (This technique works particularly wellwith online banks and the online units oftraditional banks.) For the record, we do notrecommend that anyone use joint accounts. It isjust a bad idea.
Again, please keep in mind that each time a bankor credit union requests a copy of your record,that request is tallied at ChexSystems. IfChexSystems sees three or more requests inthe past ninety days, then that fact alonecarries the same weight as a negative "closedfor cause" record.
By the way, a "donor" with a bank account cangrant to youPower of Attorneywhich, after being notarized, can be presented tothe "donor"'s bank and will allow you the abilityto endorse deposits and sign checks on the account.There are significant risks to granting Power ofAttorney so the donor may want to get legaladvice and have these explained in detail.
On a related note ..., if you were reported toChexSystems due to a problem with yourspouse's account, and the account wasNOT a joint account, then that is a huge, yetcommon, error made by the bank. Sometimeseven a person who is listed as the"beneficiary" will end up, wrongly, beingreported to ChexSystems. Should eitherof these situations happen to you, you willwant to report this to the branch managerat the bank, to ChexSystems and mostimportantly, to theFederal Reserve Complaints Departmentas this practice needs to STOP NOW!.
#8Whoooo Mexico.
Anyone with a Mexican ID (obtained from anyMexican Consulate in the U.S. or from withinMexico) can walk into any Citibank, Bank ofAmerica, Wells Fargo, or Chase Texas and openan account. Those with a Mexican Id willhave no social security number. With nosocial security number, it is unlikely thatthe search with ChexSystems will yield anynegatives (especially if the applicant hasmoved since any incidents were reported toChexSystems).
#9Oh, Canada!.
Open a U.S. Dollar checking account at a Canadianor foreign bank that operates in the United States.Often people will open an account inCanada before moving there so this practice isn'tuncommon.Canadian Banks which will open accounts to UnitedStates residents are Bank of Montreal, Canada Trust,Scotia Bank, Royal Bank of Canada, Toronto Dominion,and Canadian Imperial Bank of Commerce (CIBC).You will need a U.S. driver's license or otherstate identification or a passport.Canadians use a social insurance number instead ofa U.S. SSN (social security number), so youprobably won't even be asked for your SSN.
#10Government benefits? Request an ETA account!
Visit ETA-Find.govto find a bank or credit union that offersETAs (Electronic Transfer Accounts). Visit ourETA page whichdescribes ETAs and how everyone might qualify.
#11Learn to deal with it.
The suggestions listed above are the "quick fix"suggestions. If none of them are appropriate foryou, then your remaining options will take significanttime and effort. For instance, about a month willpass before you will get any reply when communicatingby mail, fax, or over the web with ChexSystems.So it doesn't matter if the bank screwed up, or ifthe incident was a result of a stolen card, orwhatever the reason--you will need todeal with the fact that there is no solutionthat will get things cleared up immediately.
If you currently are stuck without an account andare unable to open a new one, then life will becomea bit harder for you.
- Cashing your paycheck.
Some people must resort to using check cashingjoints where they pay 2% or more of their checkjust to get cash. But if you have access tothe bank that your paycheck is drawn through,you can visit that bank and cash the check --regardless of whether or not you have an accountwith them. Bring identification with you.You might also consider asking a friend orfamily member to cash your paycheck. However,most banks today put a hold on deposited fundsforfive business days as federal law provides,thus you can really cause problems for someoneelse by doing this.
You will be carrying around a larger amountof cash than you are normally used to.Please realize the risks of doing this andtake steps to protect yourself.
- Paying your bills.
Money orders are available at the post office,banks, grocery stores, Wal-Marts, andcheck-cashing joints.Prices range from $0.46 each at Wal-Mart, to$0.80 at the post office, and as much as $2.00to $5.00 each at your bank. Payment usuallymust be made using cash or ATM/debit card onlyas credit cards and personal checks aregenerally not accepted for the purchase ofmoney orders. An additional type of checkthat is similar to a money order is thetravelers check. - Budgeting your money.
Be prepared for problems by hiding away a cashreserve. Perhaps your paycheck will get lostin the mail, or your car will break down onthe freeway. These things happen, and when youare working with cash only, these situationscan become huge setbacks if you are not prepared.
#12Amend your report.
Once you have acopy of your ChexSystems report,you will want to verify that any "banking institutionincidents" have been amended to read:"all amounts owed have been paid". This is aa followup report that your bank files after an initialreport to say that you no longer owe any money onthe account. ChexSystems insists that all memberbanks are required to do this, but few banks ever do.
If this happens to you then you should contact thebank that reported the incident to ChexSystems andrequest that they file an update with ChexSystems toamend your incident to show that "all amountsowed have been paid" flag. You could also contactChexSystems directly for your request to have incidentsamended, but that approach takes significantly more time.
The reason you want to do this is because somebanks will ignore your ChexSystems incidents, aslong as that these incidents show this "all amountsowed have been paid" flag. After your reporthas been amended, then you can try re-applying orapplying at a different bank.
#13Negotiate a "deal".
If you still owe money to the bank thatreported you, try using that for leverage!(i.e., "I will gladly pay you for theoverdraft and any fees today -- if youagree to file a 'deletion' withChexSystems!". Or perhaps you can ask forassurance that they will amend theincident with ChexSystems flagging it toread "all amounts owed have been paid".)
#14Dispute the incident with the reporting bank.
Contact the bank that reported you andask that they file a "delete record"request with ChexSystems. You will need togive a decent reason why they should go outof their way to help you -- i.e.,"please remove the incident reported toChexSystems by you as that occurred quitesome time ago and was paid up soon afterI was notified of the problem".
Even though a bank policy might be thatonly employees from their "loss prevention"department are authorized to contact ChexSystems,the fact is that ChexSystems will accept a callfrom any bank employee who knows their banks'"ChexSystems Security Code" and then the requestfor the deletion will be honored.So your goal should be to find a sympathetic earanywhere in the organization who will callChexSystems for you.
Remember one (sad) fact:
The squeaky wheel gets the grease!
If you did pay off the amount owed shortlyafter being notified, make sure to mentionthat fact. Also play off of their sympathyby explaining how no bank will open an accountfor you now. Remember, persistence pays... and many people who put up enough of astink do get listened to, and then the "deletion"gets submitted.
Here's a list of things to do:
