General Question

ItalianPrincess1217's avatar

If someone's name is in ChexSystems can they sign a check over to another person to have it cashed?

Asked by ItalianPrincess1217 (9826 points ) February 16th, 2011 from iPhone

My name is not currently in ChexSystems but I’m having some issues with my current bank account. If for some reason I were to never pay off my overdrafts and they did decide to put my name in ChexSystems, couldn’t I just sign my check over to someone who is able to cash it?

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6 Answers

poofandmook's avatar

Except what I would do, if I were you, is to take the next cash you have on hand, and open a checking and/or savings account in another bank before you do end up in Chexsystems.

But to answer your question specifically, yes, most banks will let you do this. My dad used to cash my ex’s checks that way.

ItalianPrincess1217's avatar

@poofandmook I was considering opening another account but I thought if my name went into ChexSystems they would freeze any accounts I had anyway.

mrlaconic's avatar

chexsystems should not prevent you from cashing a check it will just prevent you from opening another account someplace else. So if you don’t like your bank I would get a new one before you do something stupid like not pay fees (regardless of how rediculous they are). ChexSystems is technically / legally a credit reporting agency and getting your name on that list will mess you up <<<I have personal experience here.

poofandmook's avatar

@ItalianPrincess1217: No… once you’re in ChexSystems, you can’t open accounts, savings or checking. They don’t freeze accounts.

The only way that your account could be frozen is if the old bank takes you to court, and you have a judgment, and the judgment was to freeze your assets and/or garnish your wages.

And yes, ChexSystems is like the credit bureau for banking. You really don’t want to end up on it. But for your own sanity, go start another checking account immediately before you’re on there.

Usually, the bank you’re overdrawn with will give you 30 days to deposit money before they close the account and report to CS.

perspicacious's avatar

Be responsible. Whether the overdrafts are mistakes/bank errors or not, you need to take care of your business at your bank and get it straightened out. Life can be quite long and you don’t need this kind of problem following you around. You may think you aren’t in the ChexSystem, but once you abandon an account with a negative balance you will be.

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