Chapter 2: ChexSystems

Though checking account problems may stem from a variety of different issues, the result is often the same – the activity being reported to an information network such as ChexSystems. Such a system provides data to financial institutions so they may identify applicants who have a history of account mishandling. If you are on the network, you will find it difficult to open future accounts. There are steps you can take to resolve past problems.

STEP 1: Obtain your report
ChexSystems
Attn: Consumer Relations
12005 Ford Road Suite 600, Dallas, TX 75234
(800) 428-9623
www.chexhelp.com

STEP 2: Resolve the debt
If your report contains a record of an outstanding debt and you have received collection notices from ChexSystems Collection Agency, you may send your payment directly to the collection agency at the address provided in the notice. In other cases, pay the bank or credit union directly. Keep in mind that once you pay the amount owed, the debt's history may still show up on the report.

STEP 3: Dispute incorrect information
Contact ChexSystems if you believe your file contains errors. Have a copy of your report on hand when disputing information.

Prevent Checks from Being Lost or Stolen

There is no current federal law to limit your losses if someone steals your checks and forges your signature, though state laws do offer some protection. In most states, the financial institution is responsible for losses from a forged check. However, you are expected to be aware of your account activity, and you may be held responsible for the forgery if you fail to notify the financial institution in a timely manner that a check was lost or stolen.

Take action immediately if you think your checks have been lost or stolen:

• Checks are missing from your checkbook or your reserve supply of checks

• Mail containing checks or account information is "lost" or appears to have been tampered with

• Unauthorized transactions appear on your checking account statement

Only carry checks that you need and keep all others in a secure place. Write checks with thick, dark ink. Draw lines to fill in gaps in the spaces where you designate a payee and the amount of the check. Immediately report irregularities in your checking account statements. Report mail theft or tampering to the U.S. Postal Inspection Service.

Make the Time for Checking Account Management

• It only takes a second to mark your transactions in your checkbook register. Do it every time.

• Keep all ATM receipts in a safe and accessible place and reconcile your checkbook immediately.

• Open and review your checking account statements as they come in.

• Access and maintain your accounts online.

• Set aside a specific place in your home for your bills and financial documents. Organize them into logical files for quick and easy access.

• Try the "agenda method" – For each month on your calendar, mark a date and time for checkbook management, just as you would any important appointment.

Different Types of Checks

When you have a checking account, you generally use personal checks for most of your transactions. However, you may be asked to use another type of check if your merchant or service provider requires a guarantee that the funds will be available when the check is cashed.

• Personal – The type of checks you receive when you open a checking account. You may be charged an annual fee for the use of the checking account, as well as the cost of the checks.

• Certified – A personal check for which the financial institution guarantees payment. Your credit union will freeze the value of the check from the funds available in the checking account.

• Cashier's – Available at most financial institutions, usually for a low fee. You can purchase one for any dollar amount and the funds are guaranteed.

• Money Orders – Available for purchase at a variety of retailers, including the post office, financial institutions, and check-cashing establishments.