PAYDAY LOAN AUSTRALIA

There is something worse than bankruptcy.

And, it can happen to you without you even knowing.

As far as you know, you haven’t done anything wrong, but the next time you need to open up a checking account you’re declined. You protest, your credit is good. You have a personal and a business checking account at the bank down the street. What’s going on? It’s simple, and about as scary as it gets: you’re name is on CheckSystems. And the sad reality is: you can’t get off. Once on CheckSystems, you can’t open a checking account or a savings account for a minimum of seven years. It’s that cold, that black and white.

The system was designed to protect banks from deadbeats. You know, the people who will open a checking account at five or six banks in one afternoon… with just enough to open the account, then overdraft them all, never to be heard of again.

So, in its infancy, CheckSystems offered banks a good safeguard against these types of people.

But, as with many things, arbitrary rules were put into place to help simplify things.

As a result, a lot of innocent people slipped through the cracks. For example, someone decides to close their bank account. They go the branch, meet with a banker and close it down. The banker gives them any remaining funds and the relationship is over. Well, not necessarily. If a charge comes through, after the account is closed, many banks automatically re-open it. However, as far as you are concerned the relationship is over. As far as the bank is concerned, you’ve overdrawn the account. You owe them money. Now, the clock is ticking.

Each bank has its own thresholds, so find out the rules.

For example with one major bank, if you are overdrawn for more than 30 days, and the amount totals over $100 (even $100.01), they will write-off the debt, and submit your name to CheckSystems. At that point, the damage is done, with little hope of reversing it.

A good rule of thumb is to monitor a closed checking account or savings account about every two weeks for six months. This way you will be aware of anything unusual, and reduce the risk of suprises and fees.

True, it’s a hassle, but the alternative is money orders, gift cards and hiding your money in the coffee can in the back of your refrigerator.

by Wayne Douglas

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