should I change bank account?

[river147]

Need some advice here. I do bill pay online(utilities, car pymts, cc payments).
My question is, should I change or close my checking account that I used to make my cc payments in the past? I don't have a bank acct. with the same cc company but they do have my bank info since I was making my pymts online.
Can cc company legally go in and withdraw funds from my checking acct. since I am no longer making my minimum payments? Or can they freeze my acct.
I've been with this bank for over 10 years and it would be a headache, though not imposssibe, to change my utilities and car pymts over to a different bank.
Please advice

[ssmdem]

I'm in the same position and been wondering the same thing. Hope someone can give you an answer.

[rcoveles]

Me three! I hadn't thought about it, and thus far, they haven't done anything like that (it's been 6 months), ALTHOUGH, the CC linked to that billpay account, I HAVE been making payments on, since it was personal and not business (don't ask me why..morality made me do it). I do have 2 business cards with that company that I have NOT paid, but as I said..no funny business yet.

[kartoons19]

I initially had a hard time trying to cancel autopay as they took out funds from my account, but since that issue has been resolved I haven't had any problems with creditors taking money out of my checking account and it has been over three months since I've stopped payment.

I am switching accounts only because I have a line of credit with my credit union that will be part of the bk, but if it wasn't for that I would probably keep the same account. I have heard that Wells Fargo freezes accounts even if you don't own them any money, but haven't heard of any other banks/credit unions that will do that unless of course you own them money.

Hope this helps.

[laylou]

im in the same boat-only with a citizens car loan that i have paid through account..What did you decide?

[epiphany]

Yes.

You should open a new account at a bank that you currently have no ties to, loans or otherwise.

Do this NOW--it can be difficult to get a checking account anywhere after you have filed for bankruptcy.

I get the headache thing. I so did not want to rid myself of my checking account in the middle of my BK but I had no choice. And it was the right move.

Try not to wax nostalgic for any accounts you once held.

[ssmdem]

If you owe your current bank no money - never have - why is it necessary to change your account?

[ryan]

As I understand it: If your present bank is not the bank your credit card/loan is with you would not have to close the acct. The only way the CC could be in a position to levy monies in that acct would be through a judgment. And they would have to file suit and go to court to get that judgment.

However, if your acct is with the same bank you owe money to, you should close the acct right away. (IE: you have a BofA credit card and a BofA bank acct.) Due to credit laws, they could OFFSET the owed money legally by taking it from your bank acct without any court action.

[sepiid]

take a look at this post for some other responses to the same type of question

http://www.bkforum.com/showthread.php?t=57501

[lesliesjoy8]

I was told by my attorney that I must immediately close out my Wachovia account because they are owned by Wells Fargo (as the early poster stated). And although I don't owe money to either entities, Wells Fargo and one other institution (can't remember which, but it's online if you search) take the money and hold it in as a trustee for anyone who files BK. Get your money out now!!! They will freeze your account and hold it for as long a three months from what I've read.

[lesliesjoy8]

Get Your money out of Wells Fargo and Wachovia regardless of whether you owe them!!!!

i initially had a hard time trying to cancel autopay as they took out funds from my account, but since that issue has been resolved i haven't had any problems with creditors taking money out of my checking account and it has been over three months since i've stopped payment.

I am switching accounts only because i have a line of credit with my credit union that will be part of the bk, but if it wasn't for that i would probably keep the same account. I have heard that wells fargo freezes accounts even if you don't own them any money, but haven't heard of any other banks/credit unions that will do that unless of course you own them money.

Hope this helps.

this is absolutely true about wells fargo and wachovia!!!!!

[Shanfish]

Hmm, to tag onto this thread... we have our mortgage with Citizens and our main checking account with them. For whatever reason they operate as two separate entities under the same company. We are not reaffirming the house and have fallen behind on payments. Should we switch checking accounts? Can they freeze our account over our late mortgage payments, or since it's a secured debt will they only be looking for the house?

[gmk]

I think the equation is really very simple. If in any way the bank you are using for checking/savings, etc. has anything even remotely associated with loans, mortgages, CCs, or anything, switch to another bank and close your accounts with the original institution. It isn't that hard to do and it is certainly prudent. You can read here on here many times when offsets are applied to your existing account. No reason to risk that at all for something so simple to do.

Just be sure you get all of your statements from the original bank via online or hard copy before you close the account(s).