New Resident - Overdraft help!

I recently became a US Permanent resident from Australia.

I have only ever had a checking account in my name & social security number. This account went into overdraft due to charges (and we all know how fast they snowball) and an amount of $116 went to a collection agency (west asset management) & they closed my account (was relatively inactive for sometime)

Before going back to Australia for a few weeks, I mailed off my payment (my husbands credit card details) and left the country on my trip.

WHen I return much to my concern WAM was calling me & saying I hadnt paid!! I told them I was away in Australia and that I had sent the payment weeks before I left.

They still claimed it wasnt paid so I arranged payment over the phone.

Now that is all paid and squared away. I am about to start a new job (which my credit history/score doesnt effect) so I went to open a new checking account (at a different bank) and was declined. So I tried to order my free credit report online and I couldnt even do that!!??

I am just wanting to start a quality new life here in the states following my "American Dream" and it seems my dreams and goals have been severely hindered by a lousy $116!!

Does this seem right? Our credit system is different in Australia and I am quite confused.

testtest

Unfortunately, I don't have good news for you. The system's are a little different here in the states. Your checking account isn't reported to the credit reporting agencies but it's a BIG deal if you default on a checking account and then disappear. No matter how paltry the amount seems. While the collection on the account may be reported to the bureaus, the actual checking account information is reported to a system called CHEX Systems and you're put on a list as a bad/fraud risk. I'm pretty sure that ALL banks use CHex Systems before they open an account to make sure that you don't have a history of check fraud. For whatever reason your account went overdrawn, the bank doesn't care 'why' - only that you owe them money (however small the amount). And if it was "relatively inactive for some time" - it's safe to assume that they thought you ditched the account and had no intentions of paying it. So now what? Well, it's going to be very difficult to open a checking account with any financial institution. To be honest, I don't know if it will work but you might want to explain your situation to the bank and see if there are any concessions they would be willing to make. They may allow you to have some type of secured deposit but this is all information you'd have to ask the bank. It's a hard lesson to learn but it pays to make sure you know the rules - especially when you're in a new country. testtest

This message was edited 1 time. Last update was at 09/07/2009

I just realized that you said you actually paid this debt before you left the country. If so, don't you have proof that you made the payment? You should be able to use that 'proof' to fight that the collection record and help clear up the initial problem with the overdraft at the bank. testtest