Got rejected when trying to open checking account with a credit union?

[Anonymous]

So I tried to open a high interest checking account with Alliant just s moment ago and was rejected. It says it’ll mail me a letter in 7-10 days. But I’m curious as to why. My credit is around 530-540 because I’m only 19 and have no credit history (a reason why I wanted to build relationship with a CU) I have no fraudulent record on file or anything like that. Only negative is that someone else that I know opened a checking account at my local credit union using my name, and I agreed. And they owed $2500 on it and never paid back so that was a huge negative record on my file. BUT, I just looked up my credit report yesterday and it actually says that this negative inquiry has expired because it’s been a couple of years and that any third party would not be able to see I even had this record at all, and right now there shows 0 negative credit history on my credit report. So how am I still getting rejected? I don’t understand. This makes me mad because I wasn’t even the one that owed the money and now I can’t even open a checking account with a CU because of a negative inquiry that has already DISAPPEARED? Or so as they SAID on the credit report. I’m not about to pay that money off anytime soon. It’s so strange. What the heck is going on?
Only reason I can think of is that I have no idea when the negative inquiry expires, it might be very recent so maybe my credit report hasn’t been updated to third parties?

[Anonymous]

You're probably denied for Chexsystems which records negative deposit account history.

[Anonymous]

So they hold onto negative credit history permanently...? Guess I will have to pay it off one way or another then lol.

[Anonymous]

Negatives will stay on Chex for 5 years. There is also EWS (Early Warning System), some banks uses one or the other and some uses both.

[Cred4All]

Adding on to what Oldman87 already provided Op, you also have the right under the Fair Credit Reporting Act to request a copy of your  report from ChexSystems or any verification system used (once every 12 months.)

[Anonymous]

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@Anonymous wrote:
Only negative is that someone else that I know opened a checking account at my local credit union using my name, and I agreed. And they owed $2500 on it and never paid back so that was a huge negative record on my file.

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Hate to say this, but if the account was in your name then you owed $2500.  Lessons like this are hard but important to learn from.

[Anonymous]

Obviously lol. I just trusted that person more than I should have. Also I thought that since when the account was opened and I was a minor at that time any record wouldn’t be on file, but apparently CUs work differently. I had a negative inquiry at a bank and it never went on file because I wasn’t 18 yet.

[Anonymous]

Has the CU sent the account to collections?  They could take you to court and get a judgement against you. SL is typically 7 years.  It may be worth it to think about taking your friend to small claims court.  Is there anything in writing between you?

[Anonymous]

Don’t worry about it. Everything’s fine. I’m here to ask for advice not warnings lol. I’m just gonna pay off the debt.

[FinStar]

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@Anonymous wrote:
Obviously lol. I just trusted that person more than I should have. Also I thought that since when the account was opened and I was a minor at that time any record wouldn’t be on file, but apparently CUs work differently. I had a negative inquiry at a bank and it never went on file because I wasn’t 18 yet.

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A lesson learned for sure, but deposit products follow different rules as governed by specific federal regulations regardless of your age.  Just keep in mind that whether you apply for any other checking/savings products in the future and whether it's a CU or traditional bank, this type of negative record will follow you for sometime until satisfied.