Credit unions check credit prior to opening a checking account???

[lalap123]

Is this done at regular banks as well or only credit unions? I already have a savings account with this credit union, but I wanted to open a checking account as well, and the form they told me to fill out has the whole credit check statement at the bottom.

Since I already have a savings account there wouldn't that mean they probably wouldn't run my credit again?

[Meatstick]

Unfortunately under the disguise known as the Patriot Act they will claim they are obligated by law.

[lalap123]

Gotcha. Is this specific only to credit unions or do you know?

[jingle47]

And they will turn you down......

[SMinGA]

I don't think its specific to credit unions.

For what its worth, it doesn't automatically mean DENIAL. We opened a new checking/savings account at Lockheed Federal in December. After filing, and I see from my credit report that they did an inquiry. (Needed a new account as I owed a credit card to our prior CU.)

[blessed]

Along the same lines, there's no reason a bank could/would close an account that is in good standing if they find out about the bk, right?

We did the same as SMinGa, opened a new checking & savings b/c we owed on a CC issued by our previous bank. My new bank can't do anything about the bk (that won't be filed for another week) correct?

[ApresMoi]

Related to this, does anyone know what a 'factact' inquiry is? I recently ordered up my credit reports, and saw all the usual inquiries, but one odd one, which did not list the name of a company, but, rather, 'FACTACT FREE DISCLOSURE'. Any ideas?

[SMinGA]

As I understand it - that is correct blessed. If you don't owe them anything, they can't 'setoff' funds to protect themselves.

[norcal]

I opened a checking account to tag onto my existing savings at my local credit union and had no problem.

[jingle47]

And they will turn you down......

Well then I hope I am wrong in your case....
Just speaking from personal experience.
I was frankly surprised they did not want my business. I was willing to guarantee Direct Deposit for my work paycheck, but apparently they felt the risk was not worth it to hold on to my money on a going forward basis.

BTW, this really freaked me out and I began to think all banks were going to turn me down to open an account. So then what would I do with my paychecks?

Anyway, I found that Bank of America is pretty BK friendly.
Search on this board and you will find other threads discussing the pros and cons of various institutions with regard to BK.

Good Luck! Things will work out!

[blncd1]

Just found out the hard way. we tried to open a new credit union account, preparing for 7, changing banks and got rejected BEFORE filing due to our mortgage battle with wf over the last 2 years and their credit dings.
guess we will look into b of a?

[MarieT]

I have been interviewing attorneys and have now been told by two of them that Wells Fargo will freeze your accounts if you file BK even if you do not owe them money. Of course that is where my account is so I will need to find another bank.

[music12]

different banks have different bk policies. you can call their customer service before trying to open an account and ask. i was turned down at one bank because of my bk (which i seriously find so stupid, i'm trying to give them money, not take money!). so i asked them whether they would have told me ahead of time had i asked, and they said yes. then i called another bank and asked, and this other bank said they don't mind bk, only chexsystems. it's worth it to call ahead and ask because the feeling you get when you are denied due to bk is just no fun, so best to avoid it by calling ahead.

b of a is not the only bank that will open an account for someone who filed for bk. given their recent actions in wrongly foreclosing on people who were paying their mortgage as agreed, i'd go to another bank.

apresmoi, i think "factact free disclosure" is probably your own inquiry asking to see your own report.

[Mensa1]

Not sure, but what I think most banks are looking for when they run the credit is to see if you have judgments or suits pending. This could result in Garnishee of your cking acct. If I were them, and they spot activity that would result in receiving legal paperwork for garnishee actions, then I would avoid opening an acct for the customer too.

On the other hand, if you are relatively straight forward and present few of the above risks then they should open an acct for you regardless of a pending or discharged Ch 7. The other issue that one can run into is you have have a history of checks bounced or owe another bank for fees, you can essentially be black-balled from opening an acct almost anywhere. Most banks and cu's use ChexSystem to see if you have been a problem previously. If so, your ticket will NOT be punched; NO accts.

It would behove anyone who is interested in opening an acct to brush up on how ChexSystems works. Here is their website.

[tylalee]

I did not read all the responses, but no(atleast the one i joined). they did not check my credit report, HOWEVER, they did check the CHEX system and thats where you would be denied an account if you are on it. But have no fear. All i had to do was prove that i was discharde in chap 7 bk and i was good to go.