January 15,2007
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How Your Bank Account Can Hurt You
Overdrafts on your bank account are a real annoyance, never mind a burden on your wallet. Did you know, however, that letting you account go delinquent too many times could affect your ability to open a new bank account in the future?
Thanks to ChexSystems, a reporting database very similar in setup to a credit bureau, banks now have a way of tracking problem customers. Those who give their branches too much rigmarole in the form of overdrafts and bounced checks may find their account closed, and their information black-balled not just from the bank they used previously, but all other major banks as well!
Widespread use of debit cards and faster-than-ever check processing means that consumers just don't have the "float time" that was previously counted on to get them through to the next payday. Additionally, check cards and debit cards tend not to be set up to stop working when an account is empty, so those with bad balancing skills may fail again and again. With the new systems in place, however, these repeat offenders are much less likely to be able to open new accounts at other institutions and begin the cycle of abuse all over again!