Arizona Statute Of Limitations

• Written contracts: 6 years, runs from date creditor could have sued account.
• Oral debts, stated or opens accounts: 3 years.
• Actions for fraud or mistake: 3 years from the date of the discovery of the fraud or mistake.
• Actions involving fiduciary bonds, out of state instruments and foreign judgments: 4 years. NOTE: Arizona applies its own statute of limitations to foreign judgments rather than that of the state that originally rendered the judgment whether the judgment is being domesticated under the Uniform Enforcement of Foreign Judgments Act or pursuant to a separate action on the foreign judgment.
• An Arizona judgment must be renewed within five years of the date of the judgment.

Arizona Credit Repair Companies | How To Pick One

If you need to get approved for a loan but have bad credit, or just want to improve your credit score because you have projects in your future that require you have a good credit score, then you definitely need to take the necessary steps to repair your credit. Because of the importance of having high credit scores, this is not something you can decide on in a rush. You need to learn about credit repair, and more importantly, learn to be able to make the difference between legitimate credit repair companies and scams. Be especially wary of companies “guaranteeing to remove negative items” on your report or to “improve your credit by 100 points in 7 days”. No two people are alike, so no two people’s financial situations are alike. A good credit repair lawyer will sit down with you to determine exactly what steps should be taken and what course of action is appropriate based on your specific situation.

As previously pointed out, choosing a credit repair company is an important decision. One major problem in the industry is that several of the large credit repair companies have turned to automated solutions. Yet our experience indicates that those solutions have shortcomings that get in the way of helping customers as effectively as possible. All they do is load up a list of derogatory items from your credit report and then askt you to pick which items you wish to dispute, without even a hint of personal service, which of course leaves a lot to be desired in terms of what results could be accomplished.

To find a credit repair company that you can trust, you have to know which questions to ask, and which answers indicate that you’re dealing with true professionals. Namely, it is unacceptable that they just offer to dispute obvious derogatory items on your report. Increasing your score in the most effective way implies painting a complete financial profile, including the number of open accounts, account types, balances, direct you in case you need to dispute a ChexSystems report, and a host of possible problems on your report that can’t be spotted with just a casual look. When you talk to a credit repair company that gives you this level of answers, then you will know that it is one that will provide truly professional service and deliver the results you deserve.

Credit Repair Laws in Arizona | Credit Repair Lawyers | Credit Repair Companies

Before we even get into the actual subject, we want to make something very clear: we are NOT suggesting that you dispute any information on your Chexsystems report just for the sake of disputing. As soon as you start doing a bit of research, you quickly find out that Chexsystems is required to abide by the same rule the credit reporting bureaus do. As such, you are allowed to dispute any information that you see on your report, and Chexsystems has 30 days to prove the accuracy of the disputed item(s). Anything that can’t be proven must be deleted because the burden of proof rests on the bureaus.

What a lot of websites suggest is that you dispute everything on your report and just hope that some items can’t be proven. This doesn’t qualify as a strategy. In fact when you think about it, it’s downright dishonest. What we are suggesting is that you review your Chexsystems report to spot mistakes. If you do, then we’re happy to provide you with how to go about getting them corrected.

Order your report

To get your Chexsystems report, the simplest way is to go to the company’s website, and go to the tab, “Order Consumer Report.” Once you place your request, they’ll mail you a copy of your report in five business days (here’s a sample Chexsystems report, so you know what to expect). Go over it carefully. If there’s anything more than five years old, it shouldn’t be on there (your information shouldn’t stay on your Chexsystems report for more than five years). Make sure any account that’s paid in full is marked paid, and that all the bank account numbers, dates and amounts are right.

Related: Can I open a bank account if I owe another bank money?

List all the inaccuracies

Inform ChexSystems, in writing, of what information you feel is inaccurate. Include copies of the documentations verifying the credibility of your claim. In addition to your name and address, your letter should clearly, and in detail, itemize each inaccuracy, explaining why you are disputing the information and requesting that it be removed or corrected. You may want to include a copy of your report with the items in question circled or highlighted. ChexSystems contact information and a sample dispute letter are included at the bottom of this article.

You also have the right to request contact information for any company that appears on your report, if not already listed, and Chexsystems is required to provide it. Ask Chexsystems for the contact information and dispute the item with them if you believe it’s inaccurate or need more information.

If the response comes back with all the information you’ve requested, verify the information yourself. Make sure everything checks out with the source of the information. Ask them for documented evidence that bears your signature. You may be able to prove your innocence if there are signs of foul play or identity theft. If ChexSystems responds with no disclosed information, you may have to take matters to a higher authority. You can file a complaint with the Consumer Financial Protection Bureau.

Sending Your Dispute Letter

Mail out your dispute letter via certified postal mail. Certifying your mail is vital to disputing any ChexSystems or credit report because it keeps a documented paper-trail of important dates. ChexSystems is allowed 30 days to respond to your dispute letter from the date they receive it. If you do not receive a response within that allotted time period, ChexSystems is under grounds to remove your record altogether. (Remember to keep all receipts from the post office, as well as copies of your dispute letter and enclosures for documentation purposes).

Chexsystems contact information is as follows:

ChexSystems Consumer Relations
7805 Hudson Road
Suite 100
Woodbury, MN 55125
Ph: (800) 428-9623, (800) 513-7125

Sample dispute letter

[DATE]
ChexSystems, Inc.
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125
To Whom It May Concern:
I was recently denied a bank account based on the information that ChexSystems maintains under my name and Social Security Number. Upon ordering a copy of my ChexSystems report, I noticed the following entry reported by Wells Fargo Bank:
Source of Information: Wells Fargo Bank – Los Angeles, CA
Reported Name: John Smith
Reported Address: 123 ABC Street, CA 54321
Reported SSN/ID: xxx-xx-xxxx
Drivers License: xxxxxxxxx
State: CA
RTN: xxxxxxxxx Account #: xxxxxxxxx
Date Reported: 01/01/2005
Reported For: Non-Sufficient Funds (NSF) Activity
Original Charge Off Amount: $150.00
I have no knowledge of such an account, and it may have been reported due to error or identity theft.
Please validate this information with Wells Fargo Bank and provide me with copies of any documentation associated with this bank account bearing my signature. In the absence of any such documentation bearing my signature, I ask that this information be immediately deleted from the file you maintain under my name and Social Security Number.
Here is my contact information:
Your Name
SSN: xxx-xx-xxxx
Consumer ID: xxxxxxxxx
Your Address
Sincerely,
Your Name

How To Dispute A ChexSystems Report

Have you been reported to ChexSystems? Are you trying to get your information removed from their database? Many people are in this situation and find it to be very hard. This is because Chexsystems is not designed to interact with individuals. Once you understand what ChexSystems is and its purpose, it will make much more sense.

What is ChexSystems?

ChexSystems is a database. It was put together by the banks, as a place for all participating banks to report the clients with which they have had negative experiences, whether it be unpaid overdrafts, excessive overdrafts, fraud attempts, and so on. The participating banks are the ones that report you, and they are ChexSystems’ only customers. Therefore, only those said banks can request that a name be dropped from the list.

It’s also important to mention that ChexSystems is a database and ONLY a database. It has no influence on whether a bank decides to open an account for a prospective customer, or not. That decision is entirely the bank’s; ChexSystems only provides the information.

So how long does an item stay on ChexSystems’ database?

Once information is reported to ChexSystems, it stays on there for five years, unless the person that has been reported takes necessary action to have their name removed. During that time period, that person is unable to open an account at most major banks, and mostly has to rely on second chance checking accounts to do their financial transactions.

How do I get my name removed?

You should get a copy of your ChexSystems report. As a reporting agency, ChexSystems is obligated to abide by the same laws that the credit reporting agencies do, so you’re entitled to one free copy of your ChexSystems report every year. If you see your name on there, you should get in touch with the bank(s) that have reported you and ask what you have to do to have your name removed.

Most of the time, it has to do with unpaid overdrafts. If that’s the case, the bank will typically require that you pay off the overdraft before they put in the request to have your namre removed. Even if they promise you they will do it, push to have that promise in writing. Once the bank(s) have completed the necessary paperwork, it will only be a matter of time before your name is taken off.

How Long Does My Information Stay On ChexSystems?

Have you been trying to get a car loan but your credit situation is holding you back? Buying a car with bad credit can seem like an impossible task. Today a lot of people end up with bad credit that never thought they would. And things that they used to think were easy to get are suddenly not easy. We’ve been building a bad credit resource to provide reliable information to people who are in financial trouble, and so far this is what we’ve covered:

• How to open a bank account after bankruptcy
• How to get a bank account with bad credit
• How to buy a laptop with bad credit
• How long does credit repair take

Back to the matter at hand. You need to finance a car, but you have bad credit, and you need to know what your options are. To make matters worse, car dealerships don’t exactly disclose information about what their financing options are so that you can pick which one would be best for you. The sad truth is that most car dealerships aren’t in the business of giving you the best deal. Instead, they’re in the business of giving you the deal that makes them the most money. So read on for helpful tips, tricks, and suggestions.

Know your credit situation

The first thing we want to address here is the fact that a lot of people with bad credit seem to be really oblivious to the reality of their situation. You can’t be out there looking for financing and not even know what your credit score is and what your credit report looks like. If your credit score is not good (what’s a good credit score?) and your credit report has all kinds of blemishes on it, then you’d better have something to counter that (like a big down payment, a recent promotion and pay raise, a change to a higher paying job, or debt that has recently been paid off), or else you won’t stand a chance. The difference in finance rate for a person with a 585 credit score vs. a 595 score can be a full point in interest. That could result in thousands of dollars of additional expense over the life of a loan. We have seen a lot of these advertisements for bad credit no money down auto loans, but these are very unlikely. So the first thing you have to do as a borrower is to keep your expectations at a realistic level and if possible, take steps to fix your credit before looking for a loan.

Bad Credit Auto Financing Options

The second step is all about securing the financing. One option is to go to car dealerships that specialize in processing loans to people with bad credit. As you can expect, they know their client base and will be moreflexible when setting up the loan requirements and/or payment plans. The downside of it is that they know that you’re (to them) a higher risk, so they will compensate that by charging you a higher interest rate than traditional banks would. Of course, that’s sort of a non-issue when you consider that traditional banks would probably not even grant you the loan at all. Another possibility is websites that cater specifically to car buyers with bad credit. Find a couple of those, submit your information, and look at the offers they give you.  Make sure you compare those to what you can get from local banks when you visit them as well. Speaking of local banks, some of them will be willing to look at more than just your credit score when giving out loans. For example, if it’s a bank you have a long-standing relationship with where you’ve paid off other loans before, they’ll be more lenient. The real benefit of shopping around is that you know before you go to the dealership what your financing situation is.  There are no mysteries, and you have a better chance to get a good interest rate.  If you’re buying a car with bad credit and you don’t look at all available options, you’re likely costing yourself thousands of dollars.

Dealer Financing

If you’ve secured financing outside of a dealership, then all you have to do is look around and make sure you get the best car your money can buy. At this point, the dealership has nothing to do with your financing. Now if you’re going to get your financing from a dealership, then you need to do a little comparison shopping by visiting them and letting them know what you’re looking for. It will also give you a feel for their flexibility or lack thereof. Go with the one that gives you the best “vibe”. We know that’s not a very scientific measure, but it’s one of those things you will know once it’s there. Your dealership of choice will then want to start analyzing your application. For them to do that, you will be asked to bring in copies of personal documents such as a paycheck, drivers license, electric bill, phone bill, or other bill that validates employment and your residential address. In addition to these items you’ll need copies of a bank statement, car insurance, and personal references. In some cases with car shoppers that do not have a personal checking account, some lenders will accept a debit card account.

Down payment

Clearly state how much of a down payment you can bring. Like we said earlier, it’s almost guaranteed that you will be asked to put some money down. By looking at your financials and the amount of money you can put down, the dealer can decide how much money they’re willing to lend you and at what interest rate. Often, people with bad credit will point out that they don’t have much available money to put down towards a car. But for any given car, increasing your down payment means that the lender has to lend you less money, so his risk is reduced.

Interest rate and refinancing

Speaking of factors, one of the most important ones is the interest rate. It’s not uncommon for your interest rate to be high initially. It reflects the fact that the creditor sees you as a high risk. It’s also not uncommon for them to put you in a program where you can refinance your car after 12 to 24 months at a lower interest rate. It is because if you have been making regular payments over this period, your credit profile has probably improved, which makes you eligible for a lower interest rate.

In closing, remember that there are no magic bullets. Putting this information to work can help you successfully buy a car even if you have bad credit, without getting fleeced in the process because if you have bad credit or poor credit, the last thing you need is another debt or payment you can’t handle.

How To Buy A Car With Bad Credit | Car Loans For Poor Credit | No Credit Auto Financing

Are you in the market to purchase a new laptop but don’t have a good credit score? The problem with bad credit is that it hurts your purchasing power. So if you don’t have the cash ready, your best bet is to find out how to buy a laptop with bad credit. Contrary to what many people think, several options are available for laptop customers who have poor credit or even no credit at all and they include financing without a credit check. You just have to learn what those options are so that you are well informed when comparison shopping.

Related: How to buy a car with bad credit

We wouldn’t feel right if we didn’t disclose that there are drawbacks when you opt for this type of financing. People might tell you that the biggest downside is that the amount of financing will be limited, but that’s really not the case. The biggest downside is that bad credit financing is very expensive. It is not uncommon for people to end up paying twice or three times the retail value of the purchased item. This is why you have to do this with a clear picture of what you should expect.

1. Check with your current employer to see if they have any options to help you buy a laptop. They might have deals in place with their current supplier that would let you buy a laptop almost at cost. If not, maybe they can set up some type of payment plan where they automatically withhold a preset amount to pay for your purchase. This would be the closest thing you’d get to “normal” financing, since in many cases you might not even be charged interest.
2. Check out in-store credit card options. Talk with the store or company that you are looking to buy the laptop from: even if you have bad credit, there are quite a few merchants that will give you a credit card to help you buy the laptop. Most of these types of businesses have in-house financing to help people purchase their laptops. If you don’t want to go with a retailer like Best Buy, you can also get a secured credit card from a variety of credit unions and banks. There are also several other stores and places that do this including Wal-Mart, Dell, Toshiba, Lenovo, HP, as well as Apple. Keep in mind that these stores don’t exactly offer the best financing terms and will charge you a high interest rate. The credit issued will not be an internationally accepted credit card, but rather a credit for purchases in the retail store. The approval rate is higher, but the interest rate for this credit is substantially higher.
3. Rent-to-own retailers offer merchandise to customers with bad credit. You will need to go into one of the rent-to-own retailers and see what type of laptops they offer. Once you decide which laptop you want to bring home, you will need to fill out an application and show proof of your income. Make the required down payment and take your new laptop home.
4. Personal Loans from credit unions or banks. Bad credit doesn’t stop you from going to you local credit union and getting a small personal loan. Many financial institutions offer loans to people seeking a new laptop computer. You must show that you’re able to pay back the loan. Even with a bad credit rating, you might be approved for a small loan if you can prove that you’re more than able to make the payments every month. They will look at your credit score and credit history, and then compare your payments to your current income. If your debt payments (rent included) is under a certain percentage of your total income, you might qualify for the loan.
5. Laptop Layaway. You do have an option to get a laptop with a layaway program too.  While definitely not a fast solution, it’s definitely a smart option if you have poor money management skills.  How a layaway program would work for you is a retailer sets aside the product that you’re interested in while you’re making payments on it.  Until you’re done paying, you cannot take or use the laptop, but once the the item is paid for, it’s yours to do as you please. This is not financial decision since you avoid paying interest on your purchase.
6. Buy a laptop through a computer club. Search the Internet for computer clubs. You can find several of these computer clubs that have a good reputation online and finance laptops and computers to those with bad credit. Many computer clubs do not check your credit, but you will be required to have some type of income or job in order to be approved for financing. Have your paycheck stub available for faster approval. Compare the clubs and choose the computer club that meets your needs.

If you’re in a hurry to get a new laptop and you have terrible credit, you may feel like your options are limited but they’re not: there are many different types of payment plans you can choose from to get a new computer, but unfortunately, in most cases the cost of the financing is pretty high. It thus becomes very important that you compare financing terms and other terms of service and shop around for at least a week before going with any offer.

How To Buy A Laptop With Bad Credit | Poor Credit Laptop Financing | No Credit Check Computer Financing

Alabama Statute of Limitations

The statute of limitations (SOL) means the time period in which a collector or junk debt buyer can sue before it is too late. The reason this is such a critical question is because a suit brought after the statute of limitations has expired is due to be dismissed and the debt buyer (and often the lawyer who brought the suit) can be sued under the Fair Debt Collection Practices Act (FDCPA) as it violates the FDCPA to file suit after the SOL has expired.

In Alabama here’s how it shakes out:

Oral Contract: 6 years

Written Contract: 6 years

Promissory Note: 6 years

Open-Ended Accounts: 3 years

Alabama Residents, Pick The Right Credit Repair Company

Choosing a credit repair company is an important decision. Several of the large credit repair companies use a software platform called Dispute Valet, Dispute Manager, or some variation thereof. The companies that use this software often fall far short of helping their customers reach the goal of great credit, even though they charge high fees for their service. The reason for their low success rate is that most of them are nothing more than automated services.

Credit Repair Laws, What You Need To Know

Before you hire someone to fix your credit, here are a few pointers worth keeping in mind:

1. If a credit repair company says they can remove all the negative marks from your credit report, run as fast as you can because it’s probably a scam. Credit bureaus are required to remove information they can’t verify, but if your negative mark is something that can be proven, no credit repair company can actually have it taken off. Also keep in mind that information “drops off” your credit report (positive or negative) after 7 to 10 years has passed (10 years for bankruptcy, 7 years for credit).
2. Being advised to create a new identity and use it to apply for new credit is a surefire sign you’re dealing with scam artists. It’s an illegal “trick” that doesn’t even work, since the debt can still be traced to you and you’ll still have to pay for it. Even if you’re trying to recover from bankruptcy, you have options. (Opening a bank account after bankruptcy)
3. A legitimate credit repair company knows that it’s legally prohibited from charging you upfront fees. So if one does, once again, run for the hills.

Alabama Credit Repair Laws | Credit Repair Lawyers | Credit Repair Companies

The USSC Cash Card is offered in the Philippines. It’s often referred to as the Western Union USSC Card but it’s really not offered by Western Union: since USSC is a Western Union agent, people have made the connection. It works the same way prepaid debit cards work in the United States. As such, it allows you to always have access to your money without actually having to carry cash with you: since it’s a Visa card, it’s accepted everywhere in the World that Visa is accepted (29 million Visa merchants and 1.4 million ATM locations worldwide, and counting!).

To get the USSC Cash Card, you need to go to the nearest USSC location. Upon filling out the form and presenting a valid ID, you get approved and pay the card fee. There are two (2) types of USSC Cash Card. The Generic which cost 50 pesos and the Personalized that cost 70 pesos. From a usage standpoint, there’s no difference; what changes is how fast you get it. People who opt for the generic card can get it immediately, while people who want their card personalized will have to wait to pick it up after 7 days.

Then you must load it with money before you can actually use it. You simply hand the amount that you want to load on the card. Your transaction is processed, and now you’re ready to use your card! It’s a reloadable card, so you can keep it and just refill it once you’ve used up the money.

A prepaid debit card like the USSC gives you a great way to control your money: since you can only spend what is on your card, there’s no way for you to get in debt by overspending. There’s also no way for you to put your account in overdraft and have to pay overdraft fees: if you don’t have enough money for a transaction, it’s simply declined.

USSC Cash Card | USSC Money Card | Western Union

Identity theft is when someone uses, without permission, your personal information in order to commit any fraud and other crimes. We like to think that this is the kind of thing that only happens to people who are careless with their personal information, but the reality is that unless you consciously watch yourself, handing over sensitive information is surprisingly common. Also, several recent studies show that a significant number of identity theft victims know the person that victimized them. Javelin Research found that a shocking 17% of identity theft crimes are perpetrated by people that the victim knows, such as friends or family members. Additionally, a recent study by the credit bureau Experian found that 55% of identity thefts perpetrated against children were committed by someone the victim knew. You should always be careful with information like your Social Security number, credit card number(s), birth date, employment information, bank PINs, driver’s license number, etc., because if they fall into the hands of unscrupulous individuals, you can get into a lot of trouble and potentially spend months trying to fix your credit and repairing the damage.

Personal Belongings

• When you are out in public or social gatherings be sure to hold onto your purse or wallet or ensure that it is in a secure place. Don’t leave it unattended at work, restaurants, health clubs, in a shopping cart, or at social gatherings, where identity thieves might be on the prowl.

Credit Reports

You have the right to one free credit report per year per credit bureau, meaning that you get 3 free credit reports a year. The information on all three should be similar, but they won’t be identical, if only because businesses vary in what credit bureaus they report information to. Here’s what to look for on your credit report:

• Inquiries. Match them up with applications you submitted, or requests you made for credit, while keeping in mind that your creditors, employers, or collection agencies might recheck your credit periodically. Inquiries that seem clearly out of place, based on the date or company, should be investigated carefully as evidence of possible identity theft.
• Incorrect Address,  Employment. It is not uncommon to find a small “typo” here or there, but a bogus recent address or employment change calls for careful investigation.
• Inactive Accounts with Activity. Identity thieves have been known to change the billing address on on old accounts you’ve forgotten about, a use them as if it were their own. A credit report shows whether each account is open or closed, and the activity.
• Accounts You Are Unaware You Have. It may be wise to close accounts you no longer use. A credit report can remind you of them.
• Unexpected Public Records. Credit reports show court judgments, liens, foreclosures, evictions, and other public records. Look for anything that is incorrect, and clearly not yours.
• Unexpected Derogatory Information. The typical pattern of an identity thief is to run up lots of bills, then not pay them. Look for unexpected past-due items.

Social Security Card and Number

• A dishonest person who has your Social Security number can use it to get other personal information about you. It all boils down to being careful with your card and your number.
• Show your card to your employer when you start a job so your records are correct. Provide your Social Security number to your financial institution(s) for tax reporting purposes.
• Keep your card and any other document that shows your Social Security number on it in a safe place.
• DO NOT routinely carry your card or other documents that display your number.
• In some identity theft cases, criminals have put up fake websites and the like, inviting you to join clubs, get free travel vouchers or open up credit accounts with zero-percent finance charges — asking only for your Social Security information in return. Don’t fall for those scams.

Bank PINs

• Some identity thieves also engage in “shoulder surfing”: looking over your shoulder or from a nearby location as you enter your Personal Identification Number (PIN) at an ATM machine. By installing a fake ATM device that reads your card’s encoded data, or by distracting you while your card is taken or switched with another, an identity theft can then use your PIN to drain your bank account without your knowledge.
• When entering PIN numbers at direct purchase terminals, bank machines, or telephones be sure to cover the keypad to stop shoulder surfers.
• If you are in a store where you suspect the debit card machine is compromised, purposely enter the wrong PIN number. If the machine accepts it, then you know its compromised whereas if it forces you to re-enter the PIN number, then it is secure.

Internet Passwords and Security

• Some enterprising identity theft criminals anonymously hang out in areas where they know people tend to be careless with computer passwords — like Internet cafes and coffee shops that offer free Wi-Fi access — and try to steal personal information. It’s important that you don’t access, say, your bank account, on a free and unsecured Wi-Fi connection.
• Choose difficult passwords not your mother’s maiden name or your pets name. Avoid keeping a written record of your bank PIN number(s), social security number and computer passwords, and never keep this information in your wallet or hand bag.
• If you must write them down, then don’t note clearly write what each number is for and don’t keep in a location that easily accessible.

Facebook, MySpace, and Other Social Media

• Set your Facebook and other profile privacy levels so strangers (including identity thieves) can’t access your information, and be hyper-aware of any scams by double-checking where a link is taking you or not clicking on anything that seems fishy.
• Limit the amount of “time and place” data that you expose through social media. Avoid publishing specifics about your whereabouts and schedule.
• Only accept friend requests from people you know.

Mail

• Stop the barrage of prescreened credit card offers in your mail. Those offers make it easy for your information to get into the hands of identity thieves.
• Invest in a shredder. Even if you opt out of the credit card offers, you may still get the occasional letter. Make sure you shred these and anything with account numbers and personal or billing information: statements, credit card offers, pre-approved credit card applications, credit card receipts, and insurance forms. Don’t let dumpster divers get access your information.
• In addition to checking monthly credit card and bank statements, pay attention to billing cycles or to a lack of mail being delivered to your address. If you’re not receiving your statements or bills, don’t assume the issuing company has made an error, it is possible that identity theft is behind  the intercepting of the mail.

Credit Freeze

• If you want to make it even harder for possible identity thieves, you can implement what is known as a credit freeze, which basically prevents anyone from viewing your credit report for an indefinite period — up to seven years, by law. A security freeze can help prevent identity theft.
• Most creditors and businesses will not open credit accounts without first checking your credit history. If your credit files are frozen, even someone who has your name and Social Security number won’t be able to get credit in your name.
• Not all U.S. states allow credit freezes, however, so you’ll want to check the specific rules for the state in which you live.

How To Prevent Identity Theft

Are you a part of the large portion of the population (millions actually) that currently don’t have a bank account. Now that may be by personal choice, but the reality is that most likely you simply can’t open a bank account. There are two companies, Telecheck and ChexSystems, that work with the financial institutions out there to provide them with information so they can decide who they want as clients.

These companies compile information and make it available to the financial institutions. Chexsystems mostly handles what happens within the financial institutions (like clients who don’t pay their overdrafts), while Telecheck typically tracks transactions that happen at other locations (validating checks for businesses that wish to offer this convenience to their clients).
If you end up on either one of those companies’ black lists, there’s a good chance that your current bank will kindly ask you to bring your business elsewhere. Not only that, since an estimated 80-90 percent of banks out there use the services of these companies, you will find yourself unable to open a bank account at roughly 4 banks out of 5. And it’s not like this situation is an easy fix; it’s notoriously hard to get out of Chexsystems. So what do you do?

Well the solution (actually ONE of the solutions) is to find a local check cashing store where you will find almost all the services that you might need at a regular bank or credit union. The biggest drawbacks are that:

1. It’s going to cost you. Check cashing stores have to abide by state laws that specify the maximum amount they can charge you to cash a check. Cashing your paycheck at a typical check cashing store will cost you anywhere from about 2 percent (in New York) to up to 5 percent (in Florida). Now that’s a very good margin and its profit potential has attracted the big boys: certain chain grocery stores, including Wal-Mart, you may be able to take advantage of check-cashing fees as low as $3 per check. They make it up in volume, but mostly they use it as a way to sell you more products on the back-end, since they typically require that you sign up for a check cashing membership.
2. It’s not as convenient as a bank account. You have to go to the store to cash your check and/or buy money orders; you have to go to the post office to mail your bill payments; you have to walk out of the store with cash on you… Even if you get one of the many prepaid debit cards offered by the check cashing stores, you still have to find a location to recharge them (unless you set up direct deposit of your paycheck on the card). Nevertheless, they charge certain fees, which brings us back to the first point.

Maximum Check Cashing Amount

There doesn’t seem to be a legal limit to how big a check a check cashing store will cash. Some institutions do place a limit, though. Walmart’s limit is $5,000, and so is KeyBank’s. Your-Exchange, based in Minnesota, will cash checks up to $10,000.

Besides that, at almost all other check cashing institutions, it seems to be a matter of 1) having someone with a high enough cashing limit who can authorize the transaction after verifying the check, and 2) how much cash is available on hand to actually pay you.

In any case, depending on the amount of the check, you might have to give additional information because of various filing requirements with the federal government.

Other Check Cashing Store Services

People who are very responsible individuals have been totally blindsided by the current economic downturn. They have been unable to stay afloat and have overdrawn their accounts or had bounced checks. Those are the people who can benefit from the various non-Chexsystems options offered at check cashing stores, which we have reviewed:

• Excella Prepaid Visa Debit Card
• People’s Cash Solutions
• Western Union Reloadable Visa Prepaid Debit Cards
• Rush Card Prepaid Visa Debit Card

While some people totally deserve ending up on the financial institutions’ “bad side”, some others just have been unlucky. Those are the people who need checking account alternatives so they can go on with their financial lives. For decades, people without bank accounts have relied on check cashing stores to gain access to their money. This is unlikely to change significantly and there are check cashing centers throughout the United States that are happy to help you handle your financial transactions, for a fee.

Local Check Cashing Centers Services And Fees

If you’ve never had trouble opening a checking account, then odds are you have no idea what ChexSystems is. On the other hand, if you’ve been trying to open a bank account and find yourself unable to do so, it’s likely that it’s because of Chexsystems. ChexSystems was initially developed to detect fraudulent activity and assist financial institutions with risk management analysis, particularly for individual customers. Banks that do not use Chexsystems are not impossible to find, although the company is pretty aggressive marketing-wise and its goal is to have 100% of the banks using its services.

Much like your credit score monitors the way you manage your credit and documents your credit history, Chexsystems monitors your banking activities and documents your banking history. Besides being a credit reporting agency, it’s also a licensed debt collector. From the reporting agency standpoint, though, just like you can request one credit report per year from each of the major credit reporting companies, you’re also entitles to a ChexSystems report, once a year, at no cost.

Related: Disputing mistakes on your ChexSystems report

Here’s what a sample ChexSystems Consumer Report looks like.

September 29, 2003

JOHN C CONSUMER

123 MAIN ST

ANY TOWN MN 12345

ChexSystems will reinvestigate any item listed in your consumer report that you believe may be inaccurate or incomplete. In order for a reinvestigation to be initiated, please complete the enclosed form and mail it to the address listed above in our letterhead or by fax to 602-659-2197.

This report was prepared for JOHN C CONSUMER

Consumer ID:12345678 for JOHN C CONSUMER

Please provide your Consumer ID number, along with your Social Security number in any future contact with ChexSystems.

Reported Information Reported Information refers to reports of accounts that have been mishandled, reported for cause, and/or outstanding debts. Reported Information is submitted directly to ChexSystems by members of our service, which consists mainly of financial institutions. Our current practice is to retain this information for a period of five years. SSN/ID indicates a Social Security number, Individual Taxpayer Identification number, Tax ID number, or Employer ID number.

Source Of Information: First National Bank Any Town, MN Reported Name: John C Consumer Reported Address: 123 Main St Any Town, MN 12345 Reported SSN/ID: 999-99-9999 Drivers License: X123456789123 State: MN Joint Name: Mary M Consumer RTN: 123456789 Account#: 987654321 Date Reported: 01/01/2003 Reported For: Non-Sufficient Funds (NSF) Activity Debt Reported: ChexSystems has no debt information available. May we suggest that you contact the source of the information to determine whether or not a debt is owed. Source of Information: Any Town Credit Union Any Town, MN Reported Name: John C Consumer Reported Address: 123 Main St Any Town, MN 12345 Reported SSN/ID: 999-99-9999 Drivers License: X123456789123 State: MN RTN: 123456789 Account #: 987654321 Date Reported: 01/01/2003 Reported For: Transactions Involving Returned Items From Own Account At another Financial Institution. Debt Reported: 160.23 Source of Information: First National Bank   Any Town, TX Reported Name: John C Consumer Reported Address: 123 Main St  Any Town, TX 12345 Reported SSN/ID: 999-99-9999 Drivers License: 123456789 State: MN Joint Name: Mary M Consumer RTN: 123456789 Account #:    987654321 Date Reported: 01/01/2003 Reported For: Non-Sufficient Funds (NSF) Activity Original Charge Off Amount:         $100.00 Paid In Full/Settled In Full Date:    09/14/2000

Inquiries Initiated By Consumer Action

Inquiries Initiated By Consumer Action refers to inquiries resulting from a transaction initiated by you. These include applying for a credit card or completing an application at a financial institution. Please note that the inquiries are part of your credit history and may be included in our reports to others. These inquiries can be viewed for ninety days up to three years.

Inquirer Name:	Any Town Savings
Inquirer Location:	Any Town MN
Inquiry Date:	02/28/2003
Name Provided:	John C Consumer
SSN/ID Provided:	999-99-9999

Inquiries Not Initiated By Consumer Action

Inquiries Not Initiated By Consumer Action refers to inquiries resulting from transactions you may not have initiated, so you may not recognize the source. Members of our service with a permissible purpose include current creditors, pre-approval creditors, and potential investors trying to assess risks. We report these requests only to you as a record of activities, and we do not include any of these requests on credit reports to others.

Inquirer Name:	Renaissance
Inquirer Location:	Beaverton CO
Inquiry Date:	03/24/2003
Name Provided:	John C Consumer
SSN/ID Provided:	999-99-9999

Retail Information

Retail Information refers to returned checks written on an account and certain collection accounts. Retailers and other businesses report this information to Shared Check Authorization Network (SCAN). ChexSystems receives this information directly from SCAN and is not involved in the collection of these items.

For additional information you may contact SCAN by telephone at 800-262-7771 or in writing to SCAN, Attention Research & Resolution, 7805 Hudson Road, Suite 100, Woodbury, MN 55125.

Date Of Check:	01/10/2002
Check Number:	6011
Amount Of Check:	$106.50
Date Check Paid:	Not Paid Yet
RTN/Account #:	12345678/98765543454
Drivers License:	X123456789123	State:	MN
Payee:	ABC Merchant
Date Of Check:	02/11/2003
Check Number:	7025
Amount Of Check:	$513.00
Date Check Paid:	08/23/2003
RTN/Account #:	12345678/98765543454
Drivers License:	X123456789123	State:	MN
Payee:	XYZ Stores

History Of Checks Ordered

History of Checks Ordered refers to a record of check orders placed within the past three years.

RTN/Account Number:	12345678 / 98765543454
Quantity Ordered:	400
Check Start Number:	6060
Date Order Shipped:	03/03/2002

Social Security Number Validation

Social Security Number Validation indicates the year and state that a particular sequence of digits first became available for issuance. This information does not include the name of the individual to whom the number was issued.

999-99-9999 Became available for issuance in 1951 or before inthe state of MN.

Drivers License Number Validation indicates whether or not the format of the drivers license number provided matches the requirements set by the state of issuance.

Drivers License X 123456789123 is a valid format for the stateof Minnesota.

Drivers License Number Verification is information provided to ChexSystems by the state that issued the drivers license number. This information, which is limited to certain states, identifies the name and date of birth of the individual to whom the drivers license was issued.

Drivers License: X123456789123	State: MN
Issued To: John C Consumer
Date of Birth: 01/31/1978

ChexSystems Contact Information

If you have any questions, please contact us at the address or telephone number listed
above in our letterhead or by fax at 602-659-2197.

As you can see, this is a very thorough report. It has drawn criticism because of that. One of the major points is that unlike other credit reports that contain both positive and negative information, a Chexsystems report contains only negative information. This is certainly true, and in response to that, some changes were brought to the way the information was reported and the weight assigned to some entries.

Yet this doesn’t change the fact that being reported to ChexSystems is decidedly not a good thing to happen to you; actually it’s something you should look to avoid at all costs. Otherwise a ChexSystems Consumer Report much like the one on this sample will be there to remind all banks that they shouldn’t be opening checking accounts for you.

© Sample ChexSystems Consumer Report