310.376.9865
Everyone is aware of the three major credit reporting bureaus, Transunion, Equifax, and Experian.
We know the majority of creditors, report every transaction to a credit reporting bureau, all credit charges every month, and your payment history.
Have you heard of ChexSystem or Telecheck?
Unless you have had a problem paying arrears on your checking account in the past, you might not be aware that banks have a similar system set up. If we look behind the curtain, about 80% of all banks report any bounced checks, or unpaid overdrafts to ChexSystem/Telecheck. Once you get put on the “BAD LIST” with ChexSystem/Telecheck, you are on that list for 5 Years, and will be unable to open a bank account with any bank that subscribes to ChexSystem/Telecheck.
Now the same rules that apply to credit bureaus apply to ChexSystem/Telecheck. You may dispute the error. You may also file a written dispute that will go on your record. Or you can pay off the item if they agree to give you a written release and promise they will report the offending item paid.
If none of the above will apply in your situation, you may try to open a “Second Chance Account.” (Goggle secondchancechecking.com – and it should get you to a web site). Some banks, and internet banks will allow you to open a bank account despite being on the ChexSystem/Telecheck black list.
- Caveat: Don’t mentions ChexSystem/Telecheck, or second chance account.
- Caveat: Some banks will charge extremely high fees, while others will treat you as a regular customer.
Now, how does this cross over into the world of bankruptcy?
Unless it is addressed the bad mark on ChexSystem/Telecheck system will ride through the bankruptcy. Now most bankruptcy attorneys will be able to address the matter if it was not taken care of in the initial Chapter 7 bankruptcy filing.
What your bankruptcy lawyer should do, and what I do, is include the name and address of ChexSystem/Telecheck in every Chapter 7 Bankruptcy filing. This way the court will notify ChexSystem/Telecheck of the Chapter 7 filing, and of the Chapter 7 discharge. ChexSystem/Telecheck will then automatically make any correction to their system, and the client should be able to open an account post bankruptcy discharge.
* DISCLAIMER: The content of this website is intended for informational purposes only. Nothing herein is intended to form the basis of an attorney-client relationship or constitute legal advice.
* Los Angeles/Orange County Bankruptcy Attorney
- Law Offices MJ Mann Bankruptcy Attorney
- 2706 Artesia Blvd, Suite BK
- Redondo Beach, CA 90278
- 310.376.9865
