Woodforest Second Chance Checking

What it is

Woodforest's account for people who've had trouble with bank accounts before. It's one of the costlier options: $11.95 a month ($9.95 with direct deposit), a $9 one-time setup fee and $25 to open, and paid overdrafts cost $32 each. You can only open it in a Woodforest branch, in the 17 states where Woodforest operates.^2,3

Woodforest says the account is designed to give a 'Second Chance' to people who have had bank account problems in the past.²

Does Woodforest use ChexSystems?

Woodforest's account terms say it may pull consumer reports when you apply. Those can include banking-history reports like ChexSystems. Woodforest's account Terms and Conditions say the bank may verify your credit and employment history by any necessary means, including a credit report from a credit reporting agency. ChexSystems isn't named, and the Second Chance Checking page doesn't mention screening.¹

Fees and overdraft

Monthly fee

$11.95 a month. Can't be waived; the fee drops to $9.95 in months with a direct deposit from an employer or other outside agency. A $3 monthly paper statement fee applies unless you choose eStatements, and there's a one-time $9 account setup fee.^2,3

Minimum to open

$25

Overdraft

Woodforest may, at its discretion, pay items (including debit card and ATM transactions) that overdraw the account and charge a $32 overdraft item fee for each, up to 3 fees a day. No fee applies when an item overdraws the account by $1 or less.

ATMs

No fee at Woodforest ATMs; $2.50 per transaction and $1.50 per balance inquiry at non-Woodforest ATMs; $5 per international transaction.

Who can open it

Woodforest says Second Chance Checking can't be opened online; you have to visit a branch. Its locations page lists branches in these 17 states.

• Alabama
• Florida
• Georgia
• Illinois
• Indiana
• Kentucky
• Louisiana
• Maryland
• Mississippi
• New York
• North Carolina
• Ohio
• Pennsylvania
• South Carolina
• Texas
• Virginia
• West Virginia

Deposit insurance: Woodforest National Bank, Member FDIC

If you've been denied before

• If a bank or credit union turns you down because of a checking account report, it must send you an "adverse action" notice with the name and contact information of the reporting company it used.^6,7
• By law, you can get a free copy of your checking account report once every 12 months, and you are also entitled to a free copy if a bank turns you down because of it.^8,9
• If your checking account report has an error, you have the right to dispute it with the reporting company and with the bank or credit union that supplied the information. Under the FCRA, companies must investigate disputes free of charge.^8,9,10
• The Office of the Comptroller of the Currency (OCC) says negative information generally stays on ChexSystems and Early Warning Services reports for five years.¹¹

ChexSystems, explained