Checking Account Application Denied - ChexSystems

[boosami]

I am transferring my business accounts to another bank, and have been working with them to get all my applications in. Today, they called me and said that they are unable to process my checking account applications because of my ChexSystems report. Anyone had any experience with this? I've requested my free ChexSystems report, but there's no instant access so I have to wait for it to be mailed to me.

I've never bounced a check or overdrawn any account without overdraft protection (business or personal). Plus, I applied and got a personal checking account probably 6 months ago with no problems (from another bank that uses ChexSystems for verification). My credit is monitored, and there are no negative remarks on it whatsoever (just checked again today).

I feel wronged! Anyone know if it could be from a prior tenant at my address, or a business with a similar name? Or any reason normal activity might be reported and cause a denial?

Any words of advice?

[Joan.of.the.Arch]

This is just a stab in the dark, but could it be that a previous bank has noted that you use a checking account in a way that is not profitable for the bank? Maybe something like using an account as a temporary place to stash several thousand dollars one day, only to withdraw it down to $1 (or some minimum) the next. I have wondered if my bank has electronically noted me doing similar. It could look like light money laundering.

[boosami]

I don't think they can report you for that because it's not breaking terms of service for your account... And plus I haven't done anything like that (other than close an old barely used account) in the past 2 years at least. I could see how a bank might want to close your account for such a thing, though, or notify you to stop doing it.

[boosami]

Update:

I talked to my private banker and he has been looking into the issue. He was out of the office this morning, which is why some other banker called me regarding the application status. He said he was able to resolve it as soon as he got in. From what he could tell they received the notice in error, something to do with the processing one of the applications in the system. He re-entered my applications and they went through the second time without any problems.

Good to know I'm not really blacklisted from getting checking accounts!

[kork13]

somebody probably just fat-fingered a number or other digit somewhere... happens all the time, and often is just a matter of asking about it to get it worked out.

[mommyof4]

Glad it worked out for you.

[Joan.of.the.Arch]

Ah, once again, the simplest explanation...

[maat55]

We had a check turned down at wal-mart one time, due to someone attempting to write checks on an closed account we had. It was a shorterm mess.