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It's Not As Bad As Las Vegas, But Yes The Bank Also Has A Blacklist An overdrawn bank account left unattended is a sure way to end up in a banks blacklist. Standard bank procedure is to report accounts in unsatisfactory conditions to ChexSystems, a reporting agency that tracks how consumers handle their deposit accounts. Ending up in such a list does'nt only hurt your status with your bank, but can also give your FICO a negative direction.
Unless you clear-up the matter with your bank by paying off the dept you will not be able to open another account for five years. An overdrawn account can be a big nuisance, or worse. Bounced checks can affect your relationships with service providers, such as the electric utility or phone company and usually cost you high fees. Writing a check when you don’t have the funds to cover it is actually illegal, and in some cases it can result in criminal penalties. With checking accounts, the key is not to let a rubber check or negative balance sit there. Madison might have avoided the blacklist if he had just settled his account sooner. Visit your bank as soon as you realize a check might bounce. If you can cover the difference with money from another account, by all means do so. And factor in other checks that may not have cleared yet. If you don’t have the cash, ask your bank to stop payment on any other checks. Notify anyone who might try to cash one of your bad checks. In the future, try to keep a buffer of at least a couple hundred dollars in your checking account, and look into your bank’s overdraft-protection plan.
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