Finding a good second chance bank that gives you a real checkbook and has all the features you need in a bank account has always been difficult (and it has been getting more difficult in recent years due to the banking crisis). We are very excited to have found a great new bank that has some amazing features for anyone looking for a new bank account.
Probity Financial Services is a company based in Texas that came up with a great idea — provide great checking accounts with no hidden fees, and provide them to almost anyone (even people on the ChexSystems list). Their checking accounts have a single, simple monthly fee. You don’t get nickle and dimed to death with fees, and you don’t get hammered with outrageous overdraft fees (which, by the way, are $35 or more at many banks).

Here are just a few of the features you enjoy with a second chance checking account at Probity Financial:

• No Overdraft Fees. A Second Chance Checking Account with no overdraft fees means freedom from outrageous, unfair and unpredictable fees.
• No Transaction Fees. Use your debit card, write checks, pay bills, and transfer money to any other checking account as often as you need.
• No Minimum Balances. Open your Second Chance Checking Account, make a deposit and just start banking. There is no need to worry about keeping a minimum balance to avoid additional fees.
• Free Overdraft Protection. Probity Financial recognizes that it’s hard to always know your exact balance every minute of the day. With their Second Chance Checking Account, you can rest assured that they will cover your transactions up to your overdraft limit …and will never charge an overdraft fee or other hidden fees.
• Free Online Banking. Probity Financial’s Free Online Banking system let’s you pay bills electronically (why not save money on stamps?). This service is free.
• Free MasterCard ATM / Debit Card Free MasterCard ATM / Debit Card. Use your ATM / debit card anywhere in the world that MasterCard is accepted.

With all these great features (plus FDIC insurance, and all the other benefits you’d expect from a REAL bank), you need to do yourself a favor and check out the Probity Financial Bank Account.

Related posts:

1. How New Banking Rules May Impact Your Second Chance Bank Account New government rules designed to solve some problems in the...
2. Finding Local Second Chance Checking Accounts Finding a local bank that will let you open a...
3. A Closer Look at AccountNow Some of the most popular second chance bank accounts available...

The problem with being on the ChexSystems list is that it makes it hard (if not impossible) for you to open a new checking account for several years. But what if checking accounts were not as useful as they used to be? If that were the case, being on ChexSystems might not be so bad after all. Here’s news about a trend that may make you rethink whether you really need a new checking account.
There’s a great article in the Los Angeles Times, which discusses a recent trend among large grocery stores — the refusal to accept personal checks for purchases. One large grocery chain in California (Fresh & Easy Neighborhood Market) does not take personal checks at any of its 70 stores.

Another large chain (Whole Foods) is also considering a similar ban.

Here’s why they are doing it. Processing personal checks is time-consuming and expensive (and everyone is trying to reduce expenses in this economy!). Also, most people can easily pay for their groceries with cash, debit cards or credit cards. The use of credit or debit cards also provides both the customer and the retailer with some additional payment protections which are not available when checks are used.

So what do you do if you don’t have a bank account or a credit card? Simple — there are dozens of great prepaid debit card accounts available which allow you to buy things using a debit card at any retailer that accepts Visa or MasterCard.

If the checkbook becomes obsolete, then people who can’t open a checking account are in a great position — simply open a prepaid debit card account and use your shiny new Visa or MasterCard debit card to make purchases. For merchants that still accept checks (such as your landlord, or your utility company), these debit card accounts allow you to write checks online (using an online bill pay service), so you have the best of both worlds.

Related posts:

1. Everyday Prepaid — MasterCard’s New Prepaid Debit Card Campaign We are always shocked at how resistant people are to...
2. Meet the Company Behind The Walmart Prepaid Debit Card (and Others…) Ever curious about what the little green dot on some...
3. Debit Cards are Passing Credit Cards in Popularity For the first time, the total amount of transactions conducted...

Overdraft – instant extension of credit from a lending institution, a person can be said “overdrawn” when an individual withdraws from a bank account exceeding to the amount of his or her savings account.

For example when a person have a savings account into a certain bank amounting to P5,000.00 and he or she withdrawn P6,000.00 to his or her saving account that is called over-drafting.

If you have an overdraft account, your bank will cover checks which would otherwise bounce. As with any loan, you pay interest on the outstanding balance of an overdraft loan.

Related posts:

1. Overdraft Protection Overdraft protection – it is a tool or a program...
2. Negotiable Order of Withdrawal Account Negotiable order of withdrawal account – An interest-earning bank account...
3. Lien Lien – The right to keep possession of property belonging...

Online Banking – basically a banking transaction performed via internet. Online Banking is also known as Internet Banking, it allows an individual or customer to conduct banking transactions via internet.

Online banking solutions offers lots of features that help an individual do it’s banking transaction without hassle on falling in lines or whatsoever.

Locally, online banking is being used for paying bills such as internet bills, electric bills, water bills and payment for credit cards.

Online Banking is primarily made in order big companies such as manufacturers, online media consultative institutions and etc. in order for them to make transaction even on distant places or abroad.

Related posts:

1. Online Debit Card Online Debit Card – a bank card or sometimes refer...
2. Online Bill Payment Online Bill Payment – Also called Electronic Bill Payment, it...
3. Online Banking — Most Americans Use It ...

Office of the Comptroller of the Currency – is federal agency of the United States of America it was established under national currency act of 1863.

Its priority function is to regulate, supervise and charter all national banks and federal branches and agencies of foreign banks in the United States.

Its headquarters is located in Washington D.C and has four district offices in New York, Chicago, Dallas and Denver.

This office is created to ensure safety and soundness of all banking institution in the United States.

Related posts:

1. Office of Thrift Supervision Office of Thrift supervision – In United of States of...
2. National Bank National Bank – Generally a banking institution owned and controlled...
3. National Credit Union Association National Credit Union Association – Another federal agency of the...

Office of Thrift supervision – In United of States of America treasury department usually responsible for issuing and enforcing regulations governing the banking and lending industry.

This bureau is responsible for ensuring the safety and soundness of deposits in thrift banks. It does this by auditing and inspecting the banks to see if government regulations and policies are being adhered to.

Related posts:

1. Office of the Comptroller of the Currency Office of the Comptroller of the Currency – is federal...
2. National Bank National Bank – Generally a banking institution owned and controlled...
3. Money Market Deposit Account Money Market Deposit Account – A banking deposit account relatively...

Offline Debit Card – usually a plastic card given by a bank to a depositor or customer which provides an alternative way of payment to cash when making a purchase. It can be called electronic checks.

Transactions conducted with offline debit cards require 2–3 days to be reflected on users’ account balances.

Some of offline debit card may have logos of major credit cards such as MasterCard, Visa and etc. These are used when making purchases into malls or shopping centers using the POS or Point of Sales system.

In other countries such as UK, Offline debit cards are used to purchase fuel in some gasoline stations with Point Of Sale System.

Related posts:

1. Online Debit Card Online Debit Card – a bank card or sometimes refer...
2. Understanding ATM Cards and Debit Cards Ever wonder what the difference between an "ATM card" and...
3. Why a Prepaid Debit Card May be Better Than an Checking Account The problem with being on the ChexSystems list is that...

Niche banks – A bank that caters and serve specific needs of its customer based on their demographic segment of population. Basically a niche bank typically target specific market or a customer.

In the Philippines for example, Rural Bank of Pangasinan usually offers services and loans to some of our farmer and fishermen it is because Pangasinan is geographically located in both aqua-culture land and agricultural land.

If considering a niche bank, it is important to make sure it is PDIC or Philippine Deposit Insurance Corporation insured, and to ensure that it is a separately chartered entity and not affiliated with a bank where you might already have deposits. This is because the PDIC generally limits deposit insurance to P100,000 per person per chartered institution.

Related posts:

1. Member Bank Member bank – A banking firm holding membership on an...
2. How Do You Confirm that a Non-ChexSystems Bank is Legitimate? If you are searching for a new bank account at...
3. PrePaid Debit Card Accounts — Are They Insured by the Government? Have you considered putting your money and paycheck into a...

Net Income – primarily it is the income of an employee or a businessman subtracted its all cost and expenses made. It is an accounting term its usual term is profit. The term income is substituted with net income.

Net income is also called as “bottom-line” for it is commonly found on the last line of company’s income statement.

Sometimes, Net income is also called earnings or profit for it is the worth remains after subtracting all tax, expenses and cost of total revenue.

Related posts:

1. Lifeline Account Lifeline account – a streamlined savings or checking account made...
2. Consumer Credit Counseling Service This is a non-profit agency that helps debtors plan budgets...
3. Medical Savings Account Medical savings account – also known as Archer Medical Savings...

Negotiable order of withdrawal account – An interest-earning bank account with which the customer is permitted to write drafts against money held on deposit. It is also known as a “NOW account”.

Structured to comply with regulations, which prohibits interest on checking accounts; NOW accounts are interest bearing and checks maybe written on them.

Typically commercial banks, mutual-savings banks and savings-and-loan associations can offer this type of account to individuals, some nonprofit organizations and certain governmental units.

Related posts:

1. Money Market Deposit Account Money Market Deposit Account – A banking deposit account relatively...
2. Bank A bank is a government licensed financial institution that accepts...
3. Minimum Payment Minimum Payment – also known as Minimum Interest Rule. it...

National Do Not Call Registry – This is designed to provide U.S. consumers a chance to limit the telemarketing calls they receive. In order for the American people to register by telephone, they may call 1-888-382-1222. The registry was scheduled to start in 2003, but the implementation was delayed due to a court challenge until 2004. The law gives exclusions to an extensive do-not-call ruling.

Related posts:

1. National Bank National Bank – Generally a banking institution owned and controlled...
2. National Credit Union Association National Credit Union Association – Another federal agency of the...
3. Is the Number of People with ChexSystems Problems on the Rise? Since there isn’t much public information about ChexSystems and the...

National Credit Union Association – Another federal agency of the United States. This union was created to monitor all credit union across the country.

Its priority responsibility is to run the National Credit Union Insurance Fund which uses tax dollars to insure the deposits at all federal credit unions.

The NCUA officially became a federal agency in 1970 and is headquartered in Alexandria, Virginia. The agency is headed by a three-member board which is appointed directly by the president of the United States. The agency currently monitors over 9,500 federally insured credit unions that service over 80 million customer accounts.

Related posts:

1. National Bank National Bank – Generally a banking institution owned and controlled...
2. Office of the Comptroller of the Currency Office of the Comptroller of the Currency – is federal...
3. Fed This is a 7-member Board of Governors that oversees Federal...

National Bank – Generally a banking institution owned and controlled by the state or government especially in developing countries like Philippines. The term national bank was been synonymously used with central bank. Today central banks were not commonly used some central banks may have national bank on their name. A national bank is a system of federally privately owned banks in the United States, each required by law to be an investing member of its district Federal Reserve Bank and insured by the Federal Deposit Insurance Corporation.

National banks are commonly associated with national finance system of a state or a government.

Related posts:

1. National Credit Union Association National Credit Union Association – Another federal agency of the...
2. Member Bank Member bank – A banking firm holding membership on an...
3. How Do You Confirm that a Non-ChexSystems Bank is Legitimate? If you are searching for a new bank account at...

Money Market Deposit Account – A banking deposit account relatively with high interest rate.

In the United States it is considered as savings account for some purposes. But upon which checks is typically written or subjected to a certain restrictions like NOW account or the Negotiable Order of Withdrawal account which is structured to comply into such regulations which forbids paying interest in checking accounts. The restrictions allows the bank invest the money with more discretion.

Although money market deposit accounts or MMDA have a similar name to money funds, they are not the same: a money market fund consists of assets held by a brokerage (or bank) on behalf of investors, while a money market deposit account is a deposit at the bank, hence a liability of the bank towards depositors.

Related posts:

1. Money Market Account Money Market Account – A bank savings account that offers...
2. Direct Deposit Tip: Save Money By Using Direct Deposit Most of us who have ended up on the ChexSystems...
3. Demand Deposit This is a bank account that lets money to be...

Money Market Account – A bank savings account that offers the competitive rate of interest (real rate) in exchange for larger-than-normal deposits or a deposit account with high interest rate with short notice required for withdrawals.

Also known by the acronym “MMA”, that stands for “money market account.”

Money Market deposit Account or MMA is a style of instant access deposit subjected to federal banking regulations such as limited monthly transaction.

Many money market accounts place restrictions on the amount of transactions you can make in a month (such as five or less).

Related posts:

1. Money Market Deposit Account Money Market Deposit Account – A banking deposit account relatively...
2. Negotiable Order of Withdrawal Account Negotiable order of withdrawal account – An interest-earning bank account...
3. Minimum Payment Minimum Payment – also known as Minimum Interest Rule. it...

Minimum Payment – also known as Minimum Interest Rule. it is a law requiring a minimum rate of interest is charged on any loan transaction between two parties.

The minimum-interest rules mandate that even if no rate is charged by the lender, an arbitrary rate shall be automatically imposed upon the loan. The minimum-interest rules are at least partly intended to prevent excess gifting between taxpayers via intra-family loans with no or below-market interest rates.

Minimum-interest rules are fairly complex and have been subject to numerous changes and modifications. There are separate rules for personal and commercial loans and sales of property that are financed by the seller.

Related posts:

1. Federal Discount Rate This refers to the interest rate set by the Fed...
2. Minimum Average Balance to Avoid Fees Minimum Average Balance to Avoid Fees – Minimum average balance...
3. Money Market Account Money Market Account – A bank savings account that offers...

Minimum Balance to open an account – Generally it is the required amount of money to open an account into a banking institution.

This is a regulation duly made by banking and finance corporations to regulate and maintain a required amount of money to open an account.

For example a bank allows a potential depositor to open an account with a required amount of two thousand pesos, and the depositor only have one thousand five hundred pesos the bank institution or corporation will not allow the depositor to open an account to the said banking and finance corporation.

Related posts:

1. Minimum Average Balance to Avoid Fees Minimum Average Balance to Avoid Fees – Minimum average balance...
2. Member Bank Member bank – A banking firm holding membership on an...
3. National Bank National Bank – Generally a banking institution owned and controlled...

Minimum Average Balance to Avoid Fees – Minimum average balance to avoid fees is a requirement placed on some deposit and checking accounts. If the average balance (i.e., the daily balance divided by the number of days) falls below the minimum level, a maintenance fee will be charged to the accountholder.

Basically it is the minimum or average required amount in monetary form that a depositor or a consumer/customer should maintain to avoid penalties or surcharges.

Related posts:

1. Minimum Balance to Open an Account Minimum Balance to open an account – Generally it is...
2. Minimum Payment Minimum Payment – also known as Minimum Interest Rule. it...
3. Managing Your Checking Account — Avoiding Bank Fees All banks charge fees, they are a fact of financial...

Merged Credit Report – A credit report which tells the raw data obtained from two or more of the major credit repositories. This is the difference from a Residential Mortgage Credit Report (RMCR) or a standard factual credit report.

Generally it is a written report made certified public accountants that contains raw data from two or more companies or lending institutions.

Related posts:

1. Credit Report Your “credit report” is a report containing detailed information about...
2. Mortgage Broker Mortgage Broker – A person who mediates in behalf of...
3. Mortgage Banker Mortgage banker – A company or individual that originates mortgage....

Member bank – A banking firm holding membership on an organized stock or commodity exchange, or depositor insurance agency.

Like in the Philippines all commercial banks must be a member of the Securities and Exchange Commission and the Philippine Deposits Insurance Corporations actually this law is a requirement before an investor or a potential bank owner can put up its bank.

In this manner the depositor’s money being deposit into a bank is insured.

Related posts:

1. Minimum Balance to Open an Account Minimum Balance to open an account – Generally it is...
2. How Do You Confirm that a Non-ChexSystems Bank is Legitimate? If you are searching for a new bank account at...
3. National Bank National Bank – Generally a banking institution owned and controlled...

Medical savings account – also known as Archer Medical Savings Account or Archer MSA.

It is a medical plan combining high-deductible medical insurance protection with a tax-deferred savings account that can be offered by employers as part of a benefits package. Medical savings accounts are designed to help participants pay for medical and healthcare expenses by allowing them to save for those expenses in a tax-sheltered environment. Participants pay healthcare expenses from this account up to the amount of the insurance deductible.

Sometimes it is also called health savings account it is a tax advantaged medical savings account commonly available to tax payers of United States of America (USA).

Related posts:

1. Health Savings Account This is an account created for people who are covered...
2. Office of the Comptroller of the Currency Office of the Comptroller of the Currency – is federal...
3. National Credit Union Association National Credit Union Association – Another federal agency of the...

MasterCard – basically it is one of the most re-known banking institutions in the world. The company principal business is to process payments in its easiest term between bank of merchants and purchaser.

Since 2006 MasterCard has been a public trade company. The company was created by two entrepreneurs in Louisville, Ky. named Raymond Tanenhaus and Stanley Benovitz. It was absorb by the United California Bank in year 1966.

MasterCard Worldwide is a membership institution owned by more than 25,000 banks that issue its card.

MasterCard continues to grow with friendly competition relationship with other credit card companies such as Hong Kong Shanghai Banking Corporation or also known as HSBC and as well with VISA Card.

Related posts:

1. Debit Cards are Passing Credit Cards in Popularity For the first time, the total amount of transactions conducted...
2. National Bank National Bank – Generally a banking institution owned and controlled...
3. A Closer Look at AccountNow Some of the most popular second chance bank accounts available...

Mortgage Broker – A person who mediates in behalf of individuals or businesses. Today mortgage brokers are the largest sellers of mortgage products for lenders.

A mortgage broker is not to be confused with a mortgage banker, which closes and funds a mortgage with its own funds. Mortgage brokers frequently facilitate transactions for mortgage bankers.

Lending institutions have sold their own products. However as markets for mortgages have become more competitive, the role of the mortgage broker has become more popular.

Related posts:

1. Mortgage Banker Mortgage banker – A company or individual that originates mortgage....
2. Mortgage Mortgage – also known as liens against property. It is...
3. Merged Credit Report Merged Credit Report – A credit report which tells the...

Mortgage banker – A company or individual that originates mortgage. A mortgage banker usually uses its own fund or borrows funds into a warehouse lending company to fund mortgages.

A mortgage banker might service the mortgage, or they might sell the servicing rights to another financial institution. A mortgage banker’s primary business is to earn the fees associated with loan origination. Most mortgage bankers do not retain the mortgage in portfolio.

Larger mortgage bankers service mortgages, while smaller mortgage bankers tend to sell the servicing rights.

Related posts:

1. Mortgage Broker Mortgage Broker – A person who mediates in behalf of...
2. Loan Origination Loan Origination – the process by which a mortgage lender...
3. Mortgage Mortgage – also known as liens against property. It is...

Mortgage – also known as liens against property. It is used by individuals or businessmen to purchase a real property without paying the entire value.

A debt instrument that is secured by the collateral of specified real estate property and that the borrower is obliged to pay back with a predetermined set of payments.

For example in a residential mortgage, a home buyer pledges his or her house to the bank. The bank has a claim on the house should the home buyer default on paying the mortgage. In the case of a foreclosure, the bank may evict the home’s tenants and sell the house, using the income from the sale to clear the mortgage debt.

Related posts:

1. Mortgage Banker Mortgage banker – A company or individual that originates mortgage....
2. Loan Origination Loan Origination – the process by which a mortgage lender...
3. Mortgage Broker Mortgage Broker – A person who mediates in behalf of...

Lifeline account – a streamlined savings or checking account made for low – income customers.

It has usually low balance requirements and has no monthly fees. It is commonly offered by big banking and finance institutions for broad public consumption.

Basic features such as check writing will be available, but will typically be limited by a monthly quota. Other electronic services may also be limited unless the account holder pays additional fees.

Lifeline accounts aims to bring all members of a society into the economy by encouraging saving and long-term investing. Low-income citizens are often ignored in the economy because they don’t have a lot of disposable income, but by fostering their long-term financial health, they can become bigger contributors down the road.

Related posts:

1. Net Income Net Income – primarily it is the income of an...
2. ATM Access Fee The term “ATM access fee” comes up frequently for people...
3. Win Lunch With Russell Simmons (Plus Get a Bank Account) How’s this for cool — you could win a trip...

Late payment fee – also known as late fine or past due fee is a charge being made against a client organization for not paying a bill or returning borrowed item or amount of money by its due date.

Late fees charged by banks, landlords, and utilities have been heavily criticized as a penalty against the poor, and attempts have been made in some places to outlaw them completely or place caps on them.

The argument against them is that the poor will inevitably be forced to pay them as they cannot earn the money to pay their bills by the due date. These people will be forced to pay even higher fees for the same services, and will find making future timely payments to their creditors even more difficult.

Related posts:

1. Late Payment Late payment – it refers to the delinquency payment of...
2. Late charge Late charge – is also known as surcharge, basically it...
3. How to Stop Payment on a Check Have you ever written a check, and then found out...

Late payment – it refers to the delinquency payment of an obligation such as bills, loans, rents and etc. The amount of the late payment is determined by the financial institution.

Financial institutions usually send notices such as statement of accounts or billing statement in order for the consumer or customer not to forget its obligation to the company.

Related posts:

1. Late charge Late charge – is also known as surcharge, basically it...
2. Late Payment Fee Late payment fee – also known as late fine or...
3. Online Bill Payment Online Bill Payment – Also called Electronic Bill Payment, it...

Loan Origination – the process by which a mortgage lender obtains a mortgage secured by real property.

Also known as origination, everyone must go through the origination process when securing a mortgage for a piece of real property. It is through this process that the terms of the mortgage agreement (amount of loan, interest rate, compounding frequency, etc) are established and the involved parties legally bind themselves to the transaction.

It generally includes all steps or process in taking a loan.

Related posts:

1. Mortgage Mortgage – also known as liens against property. It is...
2. Mortgage Banker Mortgage banker – A company or individual that originates mortgage....
3. Minimum Payment Minimum Payment – also known as Minimum Interest Rule. it...

Late charge – is also known as surcharge, basically it is an add-on cost or an added amount of charges cost or tax.

It is commonly seen on our billing statements on electric bills, phone bills, cable bills etc. for delinquent bill payers.

In our country, the allowed surcharges by the government made by private sectors or company is only 3 – 5 percent of the total amount of our bills that are not yet been made on due given date or a period of time.

In other countries late charge is also known as late fine or late fee it is a charge levied against a client by a company or organization for not paying a bill or returning a rented or borrowed item by its due date. Its use is most commonly associated with businesses like creditors, video rental outlets and libraries. Late fees are generally calculated per day, or per item basis.

Related posts:

1. Late Payment Fee Late payment fee – also known as late fine or...
2. Late Payment Late payment – it refers to the delinquency payment of...
3. Writing a Check: Don’t forget any Details This is the second in a series of articles about...

Many of our readers have come to accept that they are stuck on the ChexSystems list for the next few years, and choose to get a prepaid debit card account, or a second chance checking account and wait for their name to eventually drop off the ChexSystems list. But what about people who don’t have the option to wait? Some people need to open business checking accounts, or can’t afford to waste money on check cashing, money orders, or high banking fees. Here’s how to deal with those really tough ChexSystems problems, when you really need to get your name removed.

The answer is pretty simple: hire a consumer lawyer. If you think that ChexSystems is reporting bad information about you, and you need to get your name removed (and maybe you’ve tried to write a ChexSystems removal letter on your own), it may be time for you to look for a good attorney.

Here’s the great news. Many good consumer lawyers will take your case for free (on a “contingency” basis). Here’s why.

The Fair Credit Reporting Act (which governs consumer credit reporting agencies like ChexSystems), includes a number of provisions that allow an attorney to collect his or her attorneys fees from ChexSystems if the attorney is successful in bringing a claim under FCRA against ChexSystems on your behalf.

In the next few weeks, we’ll be writing more about this, but for now, you just need to know how to get in touch with some excellent consumer credit lawyers. Click on the banner below, and you’ll be taken to a form where you can present a few details about your situation to a number of great attorneys. They’ll get back to you (by email and over the web– you won’t get any phone calls unless you want them) with their biography, and how they can help you.

If you are really on the ChexSystems list improperly, you should be able to get one of these attorneys to take your case on a contingency basis. You won’t pay until they get a good result for you (and then ChexSystems will actually pay your bill).

Check it out right now. You don’t pay anything to submit your case to a bunch of attorneys who will get back to you immediately.

Related posts:

1. Want to Avoid ChexSystems Problems? Don’t Do These 14 Things. Luckily, it can be relatively easy to stay off the...
2. Is the Number of People with ChexSystems Problems on the Rise? Since there isn’t much public information about ChexSystems and the...
3. State of Missouri Sued on a Claim Relating to ChexSystems Apparently, the great State of Missouri is the defendant in...

Overdraft protection – it is a tool or a program offered by banking and finance institutions to eradicate or lessen over-drafting or cases on bouncing checks which may result to Estafa or a state criminal offense punishable by law.

Many consumers overdraw their account only occasionally. However, it can become very expensive very quickly for those who are frequently overdrawn, not to mention the embarrassment that often results from bouncing a check. Using preventative overdraft protection tools combined with careful management can help.

Related posts:

1. Overdraft Overdraft – instant extension of credit from a lending institution,...
2. Bounce Protection Bank protection is a service that helps customers when they...
3. How New Banking Rules May Impact Your Second Chance Bank Account New government rules designed to solve some problems in the...

Online Debit Card – a bank card or sometimes refer to as electronic check card (usually a plastic card) that can be used for online purposes. It is usually used as an alternative payment method to cash when making purchases in the internet.

In every transaction, electronic authorization is required for using online debit cards, while the debits are revealed in the user’s account instantaneously. With the Personal Identification Number (PIN) Authentication system, the transaction may be furthermore secured. Some online cards necessitate such authentication for each transaction.

Generally, the online debit card is commonly viewed as superior to the offline debit card for the reason that it has a more secured authentication system with live status. In some countries, there are banks that only issue online debit cards, like in Canada and Brazil.

Related posts:

1. Offline Debit Card Offline Debit Card – usually a plastic card given by...
2. Online Banking Online Banking – basically a banking transaction performed via internet....
3. Online Bill Payment Online Bill Payment – Also called Electronic Bill Payment, it...

Online Bill Payment – Also called Electronic Bill Payment, it is a feature of online banking which has been made to make transaction convenient.

The best and most known example for this is the PayPal, a Peer to peer payment system which allows you to pay for just about anything online as long as the seller also has a PayPal account.

The payment is optimally executed electronically in real time, though some financial institutions or payment services will wait until the next business day to send out the payment.

Related posts:

1. Late Payment Late payment – it refers to the delinquency payment of...
2. Online Banking Online Banking – basically a banking transaction performed via internet....
3. Bill Presentment This is a term that comes up frequently for people...

Lien – The right to keep possession of property belonging to another person until a debt owed by that person is discharge.

It is a form of security interest or sometimes called surety bond granted over an item of property to secure the payment over a debt. A creditor or a bank has the right to sell the mortgaged or collateral property of those who fail to meet the obligations of a loan contract. It is typically enforced by banking and finance state law.

Related posts:

1. Mortgage Mortgage – also known as liens against property. It is...
2. Garnishment This refers to a legal proceeding whereby money or property...
3. Loan Origination Loan Origination – the process by which a mortgage lender...

Apparently, the great State of Missouri is the defendant in a lawsuit involving our favorite (that’s sarcastic) credit reporting agency — ChexSystems.  Yep, Missouri faces damages of to $250 Million (or more) if a recent class action suit is successful.

Here’s what happened. Back in 2008, a group of class action plaintiffs claimed that several agencies illegally obtained a database from the Missouri Department of Motor Vehicles.  The plaintiffs claim the database had confidential information about Missouri drivers.

A Federal Law (the Federal Driver’s Privacy Protection Act) makes it illegal to sell driver’s license information.  The plaintiffs claim the State of Missouri sold the data illegally (to ChexSystems) and that ChexSystems acted improperly in getting the data.

Here’s a quote from the Courthouse News Service article about this matter:

Mitchell Burgess, the plaintiffs’ attorney, said the damages could be staggering. He said federal law provides for damages of up to $2,500 a person. If 100,000 people are affected, then damages could hit $250 million.
The suit states that the class could number in the millions.
Burgess said Missouri cannot be sued under the statute, but that people who work for the state could. He said 10 DMV workers were named as defendants in the Source for Public Data suit, including Omar Davis, director of the Missouri Department of Revenue. No DMV workers were named as defendants in the Chexsystems suit.
“It seemed unnecessary to bring them into this case,” Burgess said. “It seemed like a waste of resources to all parties to bring in the 10 defendants from the other case. … It’s all going to be addressed. It seemed like trying to squeeze blood from a turnip at that point.”
The workers’ inclusion means the State of Missouri could be liable for some or all of the damages.

It’s amazing how aggressive credit reporting agencies and other data providers are in trying to get more data about us. Maybe they should spend a little more time and effort to make sure that the data they do have is accurate and up to date.

Related posts:

1. ChexSystems, Inc. — Who Are They? We get asked this question all the time: “Who is...
2. On ChexSystems List? Know Your Rights Under the Fair Credit Reporting Act Have you recently been denied a bank account? Were you...
3. Is the Number of People with ChexSystems Problems on the Rise? Since there isn’t much public information about ChexSystems and the...

Also known as community bank, this is a commercial bank that is locally owned and operated. Its funds are derived from the community where it operates. Independent banks are not affiliated with any multibank holding companies.

Related posts:

1. Community Bank It is a bank with assets or deposits of $1...
2. Bank Holding Company Want to know what “Bank holding company” is? This is...
3. Member Bank Member bank – A banking firm holding membership on an...

Since there isn’t much public information about ChexSystems and the number of people on the ChexSystems list, we need to look to other sources to identify trends associated with ChexSystems.  Find out why we think the number of people on ChexSystems is rising…

The Federal Reserve often conducts analyses of consumer finance related topics to identify banking and finance trends.  In early 2009, the Federal Reserve published the results of a “Survey of Consumer Finances” from 2004-2007.  The Survey focused on a number of different aspects of consumer financial behavior, and one of the areas was whether consumers use checking accounts (and, if not, why they don’t use them).

Here’s a brief summary of the main finding by the Fed:

In 2007, 92.1 percent of families had some type of transaction account—a category comprising checking, savings, and money market deposit accounts; money market mutual funds; and call or cash accounts at brokerages. The increase of 0.8 percentage point in ownership since 2004 resumed the upward trend seen in earlier surveys after the ownership rate had remained essentially unchanged over the previous three-year period.

Sounds good, right? More people have checking accounts.

But wait, when we drill deeper into the data, we see that the results were broken into different categories. People who didn’t have checking accounts were grouped into categories based on WHY they didn’t have a checking account.

The biggest gainer? The group of people who don’t have a checking account because of “Credit Problems” (which more than doubled in size between 2004 and 2007.

Te main “credit problem” which prevents someone from getting a checking account is the ChexSystems list. So, based on the Fed study, it appears that the number of people with ChexSystems problems may have doubled between 2004 and 2007.

We are trying to get more details from the study so we can dig further. If you want to read the whole report, you can check it out here.

Related posts:

1. ChexSystems Removal — Sample Dispute Letter Stuck on ChexSystems list? Did you know that you can...
2. Which is More Expensive: Check Cashers, Checking Accounts, or Prepaid Debit Cards? Most people would assume that it is less expensive to...
3. How to Deal With ChexSystems Problems (the Really Tough Ones) Many of our readers have come to accept that they...

This refers to a loan or credit line that is secured by a primary residence or second home to the extent of the excess of fair market value over the debt incurred when the purchase was made.

Related posts:

1. Home Equity Line of Credit This is a process of borrowing where a homeowner may...
2. Loan Origination Loan Origination – the process by which a mortgage lender...
3. Mortgage Mortgage – also known as liens against property. It is...

This is a process of borrowing where a homeowner may borrow against home equity as needed using a checkbook or credit card. This is different from a standard loan because the borrowing may be done over a period of time.

Related posts:

1. Home Equity Loan This refers to a loan or credit line that is...
2. Loan Origination Loan Origination – the process by which a mortgage lender...
3. Merged Credit Report Merged Credit Report – A credit report which tells the...

This is an account created for people who are covered under high-deductible health plans to save for medical expenses, as well as over the counter medicine. This is a part of an individual’s health plan, into which deposits can be made by the employer or the employee.

Related posts:

1. Medical Savings Account Medical savings account – also known as Archer Medical Savings...
2. On ChexSystems? You Need to Understand Checking and Savings Accounts If you are on the ChexSystems list, you need to...
3. Net Income Net Income – primarily it is the income of an...

This is a payment card accepted by businesses as a network-issued debit card but where the funding for the purchase amount is acquired from the checking account of the consumer via ACH. In June 2007, Capital One was the first that introduced a Decoupled Debit product.

Related posts:

1. Meet the Company Behind The Walmart Prepaid Debit Card (and Others…) Ever curious about what the little green dot on some...
2. PrePaid Debit Card Accounts — Are They Insured by the Government? Have you considered putting your money and paycheck into a...
3. Online Debit Card Online Debit Card – a bank card or sometimes refer...

This term basically has two meanings. The first meaning is applied to funds provided as collateral or security for expected delivery of a good. Basically it is an amount of money given in advance to show intention to complete the purchase of a property. The second definition is applied to funds transferred to another party, such as a bank, for safekeeping.

Related posts:

1. Lien Lien – The right to keep possession of property belonging...
2. Mortgage Mortgage – also known as liens against property. It is...
3. Garnishment This refers to a legal proceeding whereby money or property...

This is a type of payment made via the internet designed to perform the same function as the traditional paper check. E-Check can be processed quickly than the conventional check and has more security features such as authentication, public key cryptography, digital signatures and encryption, and more.

Related posts:

1. What is a “Substitute Check”? Have you heard the term "substitute check" used? Have you...
2. Online Debit Card Online Debit Card – a bank card or sometimes refer...
3. Electronic Check Presentment This refers to the electronic transmission of the contents of...

These are electronic deposits or credit to a customer’s bank account. Direct deposit is usually used for payroll payments, Social Security benefits and income from investments, such as CD’s, annuities and mutual funds.

Related posts:

1. Direct Deposit Tip: Save Money By Using Direct Deposit Most of us who have ended up on the ChexSystems...
2. Electronic Funds Transfers: How They Work Learn about "electronic funds transfers" and how they work. You...
3. Demand Deposit This is a bank account that lets money to be...

This refers to the electronic transmission of the contents of cash to the drawee bank even before the physical arrival of the checks actually in the cash letter. Electronic check presentment still uses paper checks, but it does allow for a more efficient and cheaper method for clearing checks.

Related posts:

1. Electronic Funds Transfers: How They Work Learn about "electronic funds transfers" and how they work. You...
2. What is a “Substitute Check”? Have you heard the term "substitute check" used? Have you...
3. Bill Presentment This is a term that comes up frequently for people...

EFT is acronym for Electronic Funds Transfer which refers to the use of telecommunications networks to transfer funds from one financial institution, such as a bank, to another, or to withdraw funds from one’s own account to deposit in a creditor’s account.

Related posts:

1. Electronic Funds Transfers: How They Work Learn about "electronic funds transfers" and how they work. You...
2. Check Hold This term refers to the number of days an institution...
3. Electronic Check Presentment This refers to the electronic transmission of the contents of...

FCBA is a federal law, also known as the Truth in Lending Act. This law is intended to protect consumers from credit card account billing errors or other abusive credit billing practices. It applies to Open End Credit accounts, such as credit cards and revolving charge accounts.

Related posts:

1. On ChexSystems List? Know Your Rights Under the Fair Credit Reporting Act Have you recently been denied a bank account? Were you...
2. Fair Credit Reporting Act (FCRA) The Fair Credit Reporting Act is a Federal Law (in...
3. How New Banking Rules May Impact Your Second Chance Bank Account New government rules designed to solve some problems in the...

This is a 7-member Board of Governors that oversees Federal Reserve Banks, establishes monetary policy, and monitors the economic health of the country. The members are appointed by the president subject to Senate confirmation, who will serve for 14 years.

Related posts:

1. National Credit Union Association National Credit Union Association – Another federal agency of the...
2. Bank Holding Company Want to know what “Bank holding company” is? This is...
3. Fighting With Your Bank? Learn How to File a Complaint Banking problems can be difficult to deal with. For example,...

This refers to the interest rate set by the Fed offered to qualified commercial banks or other financial institutions in an attempt to reduce liquidity problems and the pressures or reserve requirements. This is one of the two interest rates set by the Fed, the Federal funds rate being the other one.

Related posts:

1. Minimum Payment Minimum Payment – also known as Minimum Interest Rule. it...
2. Fighting With Your Bank? Learn How to File a Complaint Banking problems can be difficult to deal with. For example,...
3. Money Market Account Money Market Account – A bank savings account that offers...