Bank Account

[Carmella]

Is it ok to open a new bank account while in Chapter 13? Will the bank ask or find out you are in Chapter 13 and not want to give you an account?

I don't think I would close the old account, just leave it as it with a few dollars in it.

I am having serious issues with the bank because they keep locking my debit card for suspicious activity. I had it locked 3 times in the last several days for purchases I made even after I called and they unblocked it and said they would allow a charge, it's a renewal for Amazon prime (automatic renewal).

My daughter has an account at the same bank and she is frequently blocked due to ordering online. It doesn't matter the cost of the item just the fact that it is online ordering. She's been threatening to change accounts. It's such a hassle especially with direct deposit of the paycheck.

We have another account with the bank our mortgage is financed through, but they are very conservative with using the ATM card, only 4x a month. Although you can get cash out when you use the card at the grocery store, but only $50 so if you want $100 you have to do two transactions. I have considered just moving all or most of our money into that account. '

My paycheck goes in the account where our mortgage is and my husband's check goes to the other bank.

[justbroke]

Is it ok to open a new bank account while in Chapter 13? Will the bank ask or find out you are in Chapter 13 and not want to give you an account?

There is no general issue with opening a new savings or checking account while in an active Chapter 13. The only issue would be if there is anything in your ChexSystems credit bureau report related to any bad accounts with other banks. Not all banks use ChexSystems, but the majority of them do use it to determine if you owe any other bank money or have improperly handled checking accounts (too many NSFs, or still owe the bank money from overdraft fees).

I am having serious issues with the bank because they keep locking my debit card for suspicious activity. I had it locked 3 times in the last several days for purchases I made even after I called and they unblocked it and said they would allow a charge, it's a renewal for Amazon prime (automatic renewal).

Some creditors are just too quick to shutdown a card. Most of the more sophisticated bank have sophisticated software which learns your spending patterns and isn't so reactive.

[sophieanne]

Carmella Hi - banks believe they’re keeping us safe but sometimes they are just making dealing with them painful. I opened a new account while in BK and there was no issue. As JB said they may or may not use ChexSystems, but even if so, may not be an issue. I hope you’re doing well these days.

[Carmella]

Tonight the Amazon Prime Renewal went through. I was just under $3 short on the amount, but it was processed. That's one feature of this bank I like. If it's $5 or under they do not charge you any fee. And even if it was over it wouldn't charge me an overdraft until tomorrow. In the account at the bank where my mortgage is there is no forgiveness at all they will deny the charge and give you a fee!

Maybe the way around the Amazon issue would be to use my checking account for payment instead of the debit card??? Or just be prepared for the renewal in Sept and make sure my other debit card is primary and has enough funds in it.

My daughter has had several problems with her debit card (same bank) getting locked out when she makes online purchases which seem strange to me since so many people, especially younger people order everything online. She applied for credit with Wayfair since her debit card wouldn't work and she couldn't get a live person at the bank (on hold for an hour and then disconnected).

[flashoflight]

After the chapter 13 is filed, get a report from Chex and dispute everything pre-petition with reason of bankruptcy. They will take everything out.

Fidelity has no overdraft fees at all, fast ATM fee reimbursement, and early direct deposit. The Fidelity debit card has a very rare benefit which is car rental collision insurance which is very useful if you are not allowed to open new credit cards during the 13. Cons: ATM limits start low at $520. Check deposit and ACH deposit holds take the maximum allowed time per federal regulations and new accounts have a one week hold for any amount.

[justbroke]

I have the Fidelity Gold debit card. Is that the one you are talking about? I have 401(k) and cash management account there but haven't really used it for regular banking transactions.