Business Checks

I was asked a good question that happens every day. The question is….what happens to bad checking accounts? Another words, accounts that have been overdrawn for a long period of time, and went to collections, then charge off?

For business checks, and personal checks, is the same thing. If your account goes into a neg balance, and isnt back to $0.00, your bank will notify you first, and then the account will be closed. The recovery department will try to recover the owed debt usually with in 60-90 days. If its still not paid off, it will be charged off, and can be reported to Chex systems. If you open a new checking account somewhere else, it will show up and prevent you from opening that new checking account. So….its important that you keep your checking account to a positive balance at all times. If you hit a hard time with your account, have your savings account tied into your main checking account. It will save you a headache for sure.