Don’t Lose Financial Freedom to Bad Checks
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Are you in a position of financial freedom, feeling comfortable about your earnings versus your debts? Be aware that past banking errors may catch up to you and have a serious impact on your current successful financial freedom program.
The simple fact is that you can find out your accounts are frozen unexpectedly one day as a result of having your name placed on ChexSystems. Overdraft charges from bad checks or overdrawn accounts in your past can catch up with you today. The charge will need to be reimbursed, bank accounts may be frozen or permanently closed and the result can be a substantial loss of financial freedom. A list of victims and their stories is available at the Chex Victims website.
ChexSystems is a network whereby financial institutions share information on mishandled checking and savings accounts. This central system, maintained by risk management company eFunds (EFD - Cramer’s Take - Stockpickr), allows banks and other firms to better assess how reliable their customers are.
The senior marketing manager at eFunds, Joshua Turnbull, states that the collected data, both negative and positive, is collected to “form a critical piece to protect financial institutions” from identification theft and loss, as well as comply with federal regulations and goals of opening accounts.
ChexSystems reports are much like a negative statement on your credit report. Usually your name is put into this system when you had a bank account that was overdrawn and the bank closed out the account as a result of the overdraft.
Most big banks in America use the ChexSystems, such as Wells Fargo, Citigroup, Wachovia and Bank of America.
Debbie Lonergan of Loan Alliance says, “Banks use ChexSystems to protect themselves. From the bank’s perspective, this logs people that write bad checks so that they can’t become a risk and fraud issue.”
While the banks protect themselves, protect yourself by reviewing your past accounts and making sure not to overdraft your current accounts to further your financial freedom.
Tags:Debt Management, Financial Freedom, Financial Freedom Opportunities Financial Independence
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