Worried about CC companies deducting from my checking account

[jktrading]

I am preparing to do a 7 here in a while, and I looked up all my bank info on my CC's that I use to make 1 time payment every month. The only one I see where I can't delete the bank info is Amex. They only seem to have an "update" situation. Is it prudent to call and have Amex remove my bank info? Wouldn't that give them a heads up?

Also, even if I "delete" all my bank info from the other cards, couldn't they decide to just take the payment? I'm sure it's illegal and all, but will they care?

So, should I get a new checking account and move all my funds over there? Perhaps just put in all in my savings account at the same bank where the checking is, but another account number? Maybe just keep my checking account open with $1. Any suggestions? Anyone else have CC's do an unauthorized debit?

[butterflywings]

I am preparing to do a 7 here in a while, and I looked up all my bank info on my CC's that I use to make 1 time payment every month. The only one I see where I can't delete the bank info is Amex. They only seem to have an "update" situation. Is it prudent to call and have Amex remove my bank info? Wouldn't that give them a heads up?

Also, even if I "delete" all my bank info from the other cards, couldn't they decide to just take the payment? I'm sure it's illegal and all, but will they care?

So, should I get a new checking account and move all my funds over there? Perhaps just put in all in my savings account at the same bank where the checking is, but another account number? Maybe just keep my checking account open with $1. Any suggestions? Anyone else have CC's do an unauthorized debit?

That is exactly what I would do. Today I deleted all my checking information from all my c.c's. Amex, like you, was the only one I couldn't, but thankfully my dh had opened a checking account in only his name a couple months ago, and at that same time we had closed out our joint checking. Amex has our joint checking account information so since I said who cares at this point. They won't let me delete it but the account info they have is on a closed account. Dh's new account is with the same bank because of dh's mortgage being with them.

I would close the account that you have listed with them and open a new one just to be on the safe side because while they aren't a credit union, and don't have cross collaterization, I have heard if you have ever paid online with them or paid over the phone they take that as a prior auth to debit a payment out of your account if you are passed due. I don't know how true that is but I read it has been done.

[FreshLikeADaisy]

I would close the account that you have listed with them and open a new one just to be on the safe side because while they aren't a credit union, and don't have cross collaterization, I have heard if you have ever paid online with them or paid over the phone they take that as a prior auth to debit a payment out of your account if you are passed due. I don't know how true that is but I read it has been done.

Completely agreed. It seems to be fairly common, actually. However, it's really only an issue when you have delinquent accts; if all of your accts are up to date and then you file bk before or when you would have become delinquent, any move on their part to access your bank accts is covered under the automatic stay and can be pursued by your atty. It's only when you become past due PRIOR to filing bk that it's an issue, but it does happen. Still and all, changing banks is a good move if you know now you're going to miss payments and have allowed electronic debits in the past. Good luck!!!

[jktrading]

Thanks people. Hey BF, you sure do get around like me in these forums, thanks again. I have time to set up another checking/savings locally, and get my direct deposit redirected. Does anyone think I could just change account numbers at my current bank and that would do the trick? Got to make some decisions here pretty soon. I've had my current bank (a credit union that I do not have any credit accounts with BTW) for 10 years now, and got so use to them.

[butterflywings]

Thanks people. Hey BF, you sure do get around like me in these forums, thanks again. I have time to set up another checking/savings locally, and get my direct deposit redirected. Does anyone think I could just change account numbers at my current bank and that would do the trick? Got to make some decisions here pretty soon. I've had my current bank (a credit union that I do not have any credit accounts with BTW) for 10 years now, and got so use to them.

That's what I was just going to ask Fresh like a Daisy. Because my husband, after we closed our joint account, immediately had them open a new account only in his name, so like you, the new account is with the same bank, it'll just be a new account number. I am curious if Fresh knows if doing that is enough to help.

JK, is the current account info that Amex has, is it a joint checking with your wife or only in your name?

[jktrading]

That's what I was just going to ask Fresh like a Daisy. Because my husband, after we closed our joint account, immediately had them open a new account only in his name, so like you, the new account is with the same bank, it'll just be a new account number. I am curious if Fresh knows if doing that is enough to help.

JK, is the current account info that Amex has, is it a joint checking with your wife or only in your name?

BF, we both have separate accounts, 2 for me, 1 for her.

[magyar123]

I would go to a completely different bank and NOT get a different account at the same bank. Banks conspire with creditors and possibly notify American EXpress letting them know about your new account #.
Play it safe - just go to a different bank. For your payments to them (AE) just send them money orders.

[jktrading]

I would go to a completely different bank and NOT get a different account at the same bank. Banks conspire with creditors and possibly notify American EXpress letting them know about your new account #.
Play it safe - just go to a different bank. For your payments to them (AE) just send them money orders.

Yeah, if they debit without my approval, it's really not that large a stretch to think they could find out about a different account number at the same bank. I really should get a more local bank anyway.

[FreshLikeADaisy]

Magyar's right, too many times accts at the same bank are "linked" even though they are closed, owned by another member of the household, etc. It's not so common anymore because of identity fraud and the resulting privacy measures, but just a few years ago I had a friend in the middle of a divorce who went through all kinds of hell because of "linked" accounts at her bank, even though her current acct was in her name only. I had another friend with an exceptionally controlling mother that finally broke free enough to get her own acct at the family bank... only to find that dear Mama was still able to see every transaction as if her own name was on it. It was only when my friend and I went down to the bank and raised some serious hell that they removed that household/family member "link".

Also, as far as credit cards go, when you close that acct and get a new one with the same issuer (like lost, stolen, never recd, etc) it's DIRECTLY linked to the old acct, so that any charges that continue to slip in on the old acct have a place to go, and valid charges are moved fwd to the new acct while fraud charges are kept back on the old acct that the cardholder never sees again.

Moral of all these stories? Never assume when it comes to "closed" or "renamed" or "moved" financial accts. Good luck!!!!

[Keebler]

Here's what I did. It has worked perfectly for more than six months...

(How to eliminate account information for cards that don't give you a choice...)

Link to a previous thread.

[FreshLikeADaisy]

Oh, Keeb, that rocks!!! I don't know if that would be a guarantee that they wouldn't go back and look up old records, but overwriting trumps deleting any day in the systems world, and it's sure good for a delay. What a good idea!!!

[jktrading]

Yes, I'm going to have to change banks. Just for fun I went online at my current bank, and there was an "open a new account" link. Then it said that my current Visa check/ATM card would be "linked" to my current account when I opened a new account. See ya, "linked" is not the word I was looking for.

[jp2861]

jk: As soon as start using the debit card or writing checks out of the new account it can be found. If you ever fill out an application for something that requires your checking account number and social security number you should be aware that it may show up on your credit report. Creditors can and do pull your report and can easily obtain your info off the report. You don't hear much about the big players raiding accounts anyway. It's usually dirtbag collectors that try that stunt. And, that usually happens because debtors didn't take the appropriate actions to prevent it.

If you're really that paranoid about AMEX getting into your account then leave it open with the minimum required. All of your creditors can try to pull funds but you can't get blood from a rock. If you close it that could just prompt them to start looking for you new account. But, I highly doubt they will.

As far as your savings account is concerned I would use a 2nd new bank. If the new banks links your accounts then your savings will be found at the same the checking is found.

Again, I wouldn't worry too much about the big players. I highly doubt one bank conspires with another to steal your money. But, if it makes you sleep better at night spread it out in a few different banks.

[jktrading]

jk: As soon as start using the debit card or writing checks out of the new account it can be found. If you ever fill out an application for something that requires your checking account number and social security number you should be aware that it may show up on your credit report. Creditors can and do pull your report and can easily obtain your info off the report. You don't hear much about the big players raiding accounts anyway. It's usually dirtbag collectors that try that stunt. And, that usually happens because debtors didn't take the appropriate actions to prevent it.

If you're really that paranoid about AMEX getting into your account then leave it open with the minimum required. All of your creditors can try to pull funds but you can't get blood from a rock. If you close it that could just prompt them to start looking for you new account. But, I highly doubt they will.

As far as your savings account is concerned I would use a 2nd new bank. If the new banks links your accounts then your savings will be found at the same the checking is found.

Again, I wouldn't worry too much about the big players. I highly doubt one bank conspires with another to steal your money. But, if it makes you sleep better at night spread it out in a few different banks.

I'm sure any new account I open "can be found." That wasn't really my worry. I would be giving all that info up in the BK anyway, since I'm going to be 100% honest when I file. My worry comes from the fact that I have "authorized use" of my only checking account to creditors that will want their money.

There's a lot of different people who work at these companies that may or may not do anything with my "authorized checking account." I don't want to be left feeling like I allowed this to happen. With a new account, I have not authorized any debit whatsoever, so there's nothing more I can do on that. I'm not going to keep money under my mattress or anything. I don't think "paranoid" is the correct work. I think "prudent" is the word I would use, but of course I may just be paranoid saying that.

Paranoid:
characterized by suspiciousness, persecutory trends, or megalomania

Prudent:
shrewd in the management of practical affairs

Ok, maybe I'm half paranoid, and half prudent...

[dkNY]

Interesting thread. BE CAREFUL when it comes to assuming an account is closed or cant be debited again. The debit card can be reported stolen and reset all auto debits but once the account number is leaked its hard to stop ACH debits.
Magyar had a good point earlier. It seems that once a bank smells you are having trouble with a creditor, they love to kick you when you are down and assist the creditor in getting that payment. Especially if they can find any excuse to draw an account negative and sock you NSF or "legal" fees. Banks seem to hate closing an account and love nothing more than an account just rotting on the books and soaking up greedy fees. The bank must consider the negative accounts to be an asset even though the negative balance is created out of thin air. Whenever I get a chance to vent about banks I will. I hate them even more than credit card companies. HA!