Central District Consumer Bankruptcy Attorney's Association

I have had several clients on the system over the years. Even if the "debt" is repaid, it will still be reported, the reporting bank claiming that it has a duty to protect other institutions.
Kenneth Jay Schwartz, Esq.
LAW OFFICE OF KENNETH JAY SCHWARTZ
21031 Ventura Boulevard, 12th Floor
Woodland Hills, California 91364-2203
Telephone: (818) 226-1205
Facsimile: (818) 226-1213
THE INFORMATION CONTAINED IN THIS E-MAIL IS INTENDED ONLY FOR THE PERSONAL AND CONFIDENTIAL USE OF THE DESIGNATED RECIPIENT(S) NAMED ABOVE. THIS MESSAGE MAY BE AN ATTORNEY-CLIENT COMMUNICATION, AND, AS SUCH, IS PRIVILEGED AND CONFIDENTIAL. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT OR AN AGENT RESPONSIBLE FOR DELIVERING IT TO THE DESIGNATED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT YOU HAVE RECEIVED THIS E-MAIL IN ERROR, AND THAT ANY REVIEW, DISSEMINATION, DISTRIBUTION OR COPYING OF THIS MESSAGE IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY. THANK YOU.
________________________________
To: cdcbaa@yahoogroups.com
Sent: Monday, March 30, 2009 6:25:09 PM
Subject: RE: [cdcbaa] Consumer not able to open cking acct.
I've always thought that the continued reporting of a
debtor on chex systems could (and I stress could) be a violation of the
discharge injunction in that the member bank continues to report on the debt
even though the debtor no longer has a legal obligation to pay on
it. Perhaps if one of us has a case filed before the right judge
(i.e. Bufford), an appropriate motion against the bank could be
brought.
________________________________
[mailto:cdcbaa@ yahoogroups. com] On Behalf Of Patrick
Green
Sent: Monday, March 30, 2009 6:13 PM
To: cdcbaa@yahoogroups. com
Subject: RE: [cdcbaa] Consumer not able to open
cking acct.
Not my first experience, but I
couldnt remember the name which inhibited my research.
I have been researching this
further since my post. The name was needed for the research. They
are considered a credit reporting agency under the FCRA (Fair Credit Reporting
Act). So far all reported cases agree. As my client does owe the
reporting bank, I dont believe there is any FCRA violation.
In anticipation of filing, she
was attempting to move her banking to non-creditor institutions when she ran
into the problem. She actually tried a small credit union, but was only allowed
to open an acct with in bank transactions only. She is going to try to pay off
the reporting bank, to which she owes very little, in exchange for removal from
the List.
Thanks to all for your
responses.
Pat
Patrick T. Green,
Esq.
Fitzgerald &
Green
Attorneys at
Law
1010 E. Union
Street
Suite 206
Pasadena, CA
91106
Tel:
626-449-8433
Fax:
626-449-0565
pat@fitzgreenlaw. com
From:cdcbaa@yahoogroups. com
[mailto:cdcbaa@ yahoogroups. com] On Behalf Of David A.
Tilem
Sent: Monday, March 30, 2009 5:57 PM
To: cdcbaa@yahoogroups. com
Subject: RE: [cdcbaa] Consumer not able to
open cking acct.
As Hale has said, this is the CHEX system. It has
been in existence for about 15-20 years. I'm surprised this is your firstexperience with it. The system began with an informal agreement between
and among a certain number of large banks to "blackball" anyone who bounced a
check or filed bankruptcy with a ready-reserve account balance. The systemhas since expanded to include almost all banks and Credit Unions, and they have
expanded the reach by asking people to pay their credit cards "automatically"
from their checking accounts. When credit cards are not paid, they "pay"
the card using the ready-reserve account and, well, you can guess the
rest.
The system arguably violates anti-trust laws and is
anti-competitive. It is also bad for the economy because it precludes a
fresh start. Arguably one cannot participate in the modern economy absentany bank relationship. It is also bad for the govt because people who
don't have bank accounts tend not to pay income taxes and live on a cash
basis. In short, this system is bad for everyone.
The system appears to be completely unregulated.
It is not covered by the FDCPA or a bankruptcy discharge. Banks simply
argue that they don't have to do business with anyone they don't like. Ofcourse when all of them get together and say the same thing, it's probably a
violation of antitrust laws, but which one of us wants to take on that
battle?
One work-around: have your client form a 1 member LLC,
get a new tax ID number and open the account number for the LLC. Another
is to have your client open new accounts at a new bank before the bankruptcy
case is filed, but some banks are now looking to see if their new customers get
listed on CHEX within a short period after new accounts are opened. I
have had clients see their new accounts closed and their deposits
refunded. This is a huge consumer problem which no one seems to have
noticed and it has been growing for years.
David A.
Tilem
Certified Bankruptcy
Specialist*
Law Offices of David A. Tilem
(a debt relief agency)
206 N. Jackson Street, #201,
Glendale, CA 91206
Tel: 818-507-6000 Fax:
818-507-6800
* Bankruptcy specialist
cert. by State Bar of CA Bd of Legal Specialization.
Bd. of Certification
Message-----
[mailto:cdcbaa@ yahoogroups. com] On Behalf Of Patrick
Green
Sent: Monday, March 30, 2009 5:19 PM
To: cdcbaa@yahoogroups. com
Subject: [cdcbaa] Consumer not able to
open cking acct.
Financial institutions have some list they put consumers on
that restricts them from opening cking accts and engaging in other bankingactivities. They do this based on the consumer writing hot checks or
some other bad act.
What is the name of this list and what is the source of their
authority, if any, to do so?
TIA
Pat
Patrick T. Green, Esq.
Fitzgerald & Green
Attorneys at Law
1010 E. Union Street
Suite 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw. com
I have had several clients on the system over the years. Even if the "debt" is repaid, it will still be reported, the reporting bank claiming that it has a duty to protect other institutions.Kenneth Jay Schwartz, Esq.LAW OFFICE OF KENNETH JAY SCHWARTZ21031 Ventura Boulevard, 12th FloorWoodland Hills, California 91364-2203Telephone: (818) 226-1205Facsimile: (818) 226-1213THE INFORMATION CONTAINED IN THIS E-MAIL IS INTENDED ONLY FOR THE PERSONAL AND CONFIDENTIAL USE OF THE DESIGNATED RECIPIENT(S) NAMED ABOVE. THIS MESSAGE MAY BE AN ATTORNEY-CLIENT COMMUNICATION, AND, AS SUCH, IS PRIVILEGED AND CONFIDENTIAL. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT OR AN AGENT RESPONSIBLE FOR DELIVERING IT TO
THE DESIGNATED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT YOU HAVE RECEIVED THIS E-MAIL IN ERROR, AND THAT ANY REVIEW, DISSEMINATION, DISTRIBUTION OR COPYING OF THIS MESSAGE IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY. THANK YOU.From: Larry Simons <larry@lsimonslaw.com>To: cdcbaa@yahoogroups.comSent: Monday, March 30, 2009 6:25:09 PMSubject: RE: [cdcbaa] Consumer not able to open cking acct.
I've always thought that the continued reporting of a
debtor on chex systems could (and I stress could) be a violation of the
discharge injunction in that the member bank continues to report on the debt
even though the debtor no longer has a legal obligation to pay on
it. Perhaps if one of us has a case filed before the right judge
(i.e. Bufford), an appropriate motion against the bank could be
brought.
From: cdcbaa@yahoogroups. com
[mailto:cdcbaa@ yahoogroups. com] On Behalf Of Patrick
GreenSent: Monday, March 30, 2009 6:13 PMTo:
cdcbaa@yahoogroups. comSubject: RE: [cdcbaa] Consumer not able to open
cking acct.
Not my first experience, but I
couldnt remember the name which inhibited my research.
I have been researching this
further since my post. The name was needed for the research. They
are considered a credit reporting agency under the FCRA (Fair Credit Reporting
Act). So far all reported cases agree. As my client does owe the
reporting bank, I dont believe there is any FCRA violation.
In anticipation of filing, she
was attempting to move her banking to non-creditor institutions when she ran
into the problem. She actually tried a small credit union, but was only allowed
to open an acct with in bank transactions only. She is going to try to pay off
the reporting bank, to which she owes very little, in exchange for removal from
the List.
Thanks to all for your
responses.
Pat
Patrick T. Green,
Esq.
Fitzgerald &
Green
Attorneys at
Law
1010 E. Union
Street
Suite 206Pasadena, CA
91106
Tel:
626-449-8433
Fax:
626-449-0565
pat@fitzgreenlaw. com
From: cdcbaa@yahoogroups. com
[mailto:cdcbaa@ yahoogroups. com] On Behalf Of David A.
TilemSent: Monday, March 30, 2009 5:57 PMTo:
cdcbaa@yahoogroups. comSubject: RE: [cdcbaa] Consumer not able to
open cking acct.
As Hale has said, this is the CHEX system.been in existence for about 15-20 years. I'm surprised this is your first
experience with it. The system began with an informal agreement between
and among a certain number of large banks to "blackball" anyone who bounced a
check or filed bankruptcy with a ready-reserve account balance. The system
has since expanded to include almost all banks and Credit Unions, and they have
expanded the reach by asking people to pay their credit cards "automatically"
from their checking accounts. When credit cards are not paid, they "pay"
the card using the ready-reserve account and, well, you can guess the
rest.
The system arguably violates anti-trust laws and is
anti-competitive. It is also bad for the economy because it precludes a
fresh start. Arguably one cannot participate in the modern economy absent
any bank relationship. It is also bad for the govt because people whodon't have bank accounts tend not to pay income taxes and live on a cash
basis. In short, this system is bad for everyone.
The system appears to be completely unregulated.
It is not covered by the FDCPA or a bankruptcy discharge. Banks simply
argue that they don't have to do business with anyone they don't like.course when all of them get together and say the same thing, it's probably a
violation of antitrust laws, but which one of us wants to take on that
battle?
One work-around: have your client form a 1 member LLC,
get a new tax ID number and open the account number for the LLC. Another
is to have your client open new accounts at a new bank before the bankruptcy
case is filed, but some banks are now looking to see if their new customers get
listed on CHEXwithin a short period after new accounts are opened.have had clients see their new accounts closed and their deposits
refunded. This is a huge consumer problem which no one seems to havenoticed and it has been growing for years.
David A.
Tilem
Certified BankruptcySpecialist*
Law Offices of David A. Tilem
(a debt relief agency)
206 N. Jackson Street, #201,
Glendale, CA 91206
Tel: 818-507-6000 Fax:
818-507-6800
* Bankruptcy specialist
cert. by State Bar of CA Bd of Legal Specialization.
Bd. of Certification
-----Original
Message-----From: cdcbaa@yahoogroups. com
[mailto:cdcbaa@ yahoogroups. com] On Behalf Of Patrick
GreenSent: Monday, March 30, 2009 5:19 PMTo:
cdcbaa@yahoogroups. comSubject: [cdcbaa] Consumer not able to
open cking acct.
Financial institutions have some list they put consumers on
that restricts them from opening cking accts and engaging in other bankingactivities. They do this based on the consumer writing hot checks or
some other bad act.
What is the name of this list and what is the source of their
authority, if any, to do so?
TIA
Pat
Patrick T. Green, Esq.
Fitzgerald & Green
Attorneys at Law
1010 E. Union Street
Suite 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw. com

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