Banking Access

Access to safe and secure banking services has been seen as a critical part of individual financial freedom in America for generations. It allows safe keeping of liquid assets, confers interest on accounts, and is a critical step in accessing credit markets. With the rise of electronic banking, a new set of privileges such as having access to direct deposit of paychecks, on-line or automatic bill pay, and the ability to closely monitor account activity, make banking services that much more integral to navigating American society. Yet many women coming out of domestic violence situations may be “frozen out” of banking services because of previous negative banking relationships. Most banks in America participate in ChexSystems., which describes itself on its website as a network that “is comprised of member Financial Institutions that regularly contribute information on mishandled checking and savings accounts to a central location. ChexSystems shares this information among member institutions to help them assess the risk of opening new accounts.” Because information about accounts is accessible not just to an individual bank, but to all banks, the fact than a woman’s partner might have destroyed her ability to get an account at one bank through fraudulent means does not just affect her relationship with that one bank, but may prevent her from getting access to banking services at any financial institution.

As advocates, we can take steps to help women regain access to banking services. Find out if your community has a program to help individuals “rehabilitate” their bank history, such as Missouri’s Get Checking program. Reach out to local banks or credit unions to learn their policies, as some local institutions may be able to provide limited banking services to participants with a negative ChexSystems report. These institutions may be able to offer accounts without a debit card or with slightly higher minimum deposits.

If you are working with a woman who is unsure about her banking history, she can access her ChexSystems report once a year for free. To see a ChexSystems report, go to www.chexhelp.com, or call 1-800-428-9623.