The most common reasons that people are reported to Chexsystems

Financial institutions lose billions of dollars every year because of check fraud and abuse, which is why 80 percent of U.S. banks and credit unions belong to the ChexSystems network. There are many reasons why people are reported to chexsystems. Millions of Americans from single parents, women and minorities to divorcees are unbanked.

People with small and limited income are more likely to have an NSF occour which in many cases will result with being reported to chexsystems. Many times these people will rack up tons of fees in overdrafts that they can not pay which will also result in the account staying negative, eventually closing and later being reported to chexsystems.

In times of economic hardship where people are struggling to make ends meet, many resort to using payday loans. This year, 2009, we see more and more people that have been reported to chexsystems for these defaulted loans.

Small businesses are a huge growing number of those now being reported to chexsystems for " fraud". We see small businesses that will accept checks from their customers that turn out to be " bad checks". A growing number of banks are now blaming small businesses for these bad checks and closing their accounts, reporting them to chexsystems and worse, reporting them for " suspected fraud or fraud"

And of couse there are many young people that have made bad decisions at one time in their life. Not thinking of the consequences later just to find out when they need a checking account but are unable to open one due to chexsystems.

Identity Theft is a growing problem that unfortunately can land many of us in chexsystems. It is VERY important that if you have been a victim of Identity theft that you follow all the correct steps to ensure that you will be hurt the very least.

Once you are reported to chexsystems, it is not easy to find an account. I have spent the past 7 years helping those reported to find the accounts that they need. There are still banks and credit unions that do not use chexsystems, and there are some that have second chance checking. Just today, I informed four people of the second chance checking account that is now offered at WoodForest Bank. This is a really excellent option right now for those that live local to a branch. Read an email from Barbara from Rochester, NY

Your help has been a God-send already. :o) I'm going in on Friday to open the Woodforest account. It'll be the Second Chance account, and that will work just great. Thank you again!!!!!!!