From: sean@cobra.dra.com
Newsgroups: misc.legal
Subject: Re: Blacklisted from Banking System for $58.59 overdraft!
Date: 11 Jan 93 12:47:23 CST
Organization: Data Research Associates, Inc.

In article <bsm.10.0@utrcv1.res.utc.com>, bsm@utrcv1.res.utc.com (Brian S. McCarthy) writes:
> In article <1993Jan5.181007.49@cobra.dra.com> sean@cobra.dra.com writes:
>>However I would question doing business with that particular bank.  The
>>decision to not grant you a checking account is the bank's, not ChexSystems.
>>You should treat this as an example of the type of customer service you
>>would receive from the bank in the future.  If you thought this was an
>>example of poor customer service, why would they improve in the future.
> 
> Obviously, I have no intention of doing business with the bank that 
> blacklisted me in the future.  As a matter of fact, I closed my account with 
> them September 4, 1990, right after the incidents with the malfunctioning 
> ATM.  The trouble is, they have put me on this blacklist, and NO BANK IN THE 
> COUNTRY will open a checking account for me for SIX YEARS (actually, 
> starting in 1990 so only three and a half more...)

Oops, we've got to many things called "Bank" running around in that 
note.  Let me try to make myself a little clearer...

Bank #1 - The bank that reported your overdrawn account to ChexSystems

Bank #2 - The bank that decided not to open an account because you had
an overdrawn an account at another bank

I was referring to Bank #2's poor customer service.  The decision not grant
you a checking account is Bank #2's.  Bank #1 can't stop other banks from
granting you an account.  However, if Bank #2 was just some little branch
bank, there maybe no one there with enough sense to know when to overrule
the "computer."  You may be better off going to another (larger/smaller)
bank. Try to talk to someone higher than the teller, and explain the
situation.  You may not qualify for the "free" checking account, but they
may have a more expensive account for which you could qualify.

It is like TRW reporting that you were late one month with a payment on
your credit card.  One bank may decide that is too much and not give you
another credit card, while another bank would decide that isn't too bad
and grant you a line of credit.  In either case TRW isn't running a
"Blacklist" of people  who will never get another credit card for six years.
Each credit grantor is supposed to make up their own mind, based on the
"facts", on granting you any credit.

The same thing is true for ChexSystems.  It is simply a credit reporting
bureau providing "facts."  If ChexSystems is reporting inaccurate information,
you can file a complaint with the FTC (and maybe the FDIC, Comptroller, and
the Attorney General of the state, etc).  But as I understand your article,
your account was overdrawn (so the "fact" may be accurate, and it may take
a lawyer to force the bank to admit it was their mistake).  In any case
ChexSystems should allow you to add a statement to your file (100 words or less)
explaining your side.  Although banker's might view it as you were trying
to ride the ATM float and you got caught to close to the edge.  Banker's
really hate people who try to use the float, they're the only ones who
are supposed to be able to use the float.

The reported statement by the bank manager that they never take anyone off
ChexSystems, no matter how they got there, is worrying.  But I suspect he
would claim you misunderstood what he said that once the bank's lawyers had
a chat with him.
-- 
Sean Donelan, Data Research Associates, Inc, St. Louis, MO
Domain: sean@sdg.dra.com, Voice: (Work) +1 314-432-1100
Newsgroups: misc.legal