There are many reasons why people are reported to chexsystems. Millions of Americans from single parents, women and minorities to divorcees are unbanked.
1. 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.
2. 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.
3. 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”
4. 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
5. 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.
I see many young college students wind up reported to chexsystems due to small errors and mistakes