Freezing Bank Accounts?

[tcreegan]

Hi again Panacea,

Wells Fargo Bank has a habit of freezing accts.....get your checking acct out of there and move it to a new bank.

Capital One buys Chase, Cap One now has your cc (they left the Chase name on it, but Cap One owns it now) and your checking acct.....get your checking acct out of there and move it to a new bank

Your BK is a 'fresh start'.....start with some fresh checking accounts...

Tom in Colo

[Panacea]

Thanks.

My checking account isnt will Wells Fargo, never was. Its with Capital One, who used to be Chevy Chase Bank (A Washington DC bank), not associated with with just Chase
As far as I know, Capital One didn't buy Chase.....they bought Chevy Chase Bank....different companies.

I have nothing with Capital One, except my checking account.....no cc's, no mortgage, or heloc.

I'm sorry if I'm confusing everyone with my confusion!

[rjmwx81]

I just e-mailed my CU and asked if they freeze accounts in BK, and they told me they don't unless they have a cross-collateralized debt. They said they will freeze savings accounts in a BK if the checking account has a negative balance, since that's technically a debt too. Neither applies to me. So I suppose the best advice I can give is just ask your bank or CU for their policy, since apparently different institutions handle this differently.

[Panacea]

Thanks ya'll, for the help and advice. I'm just gonna keep trudging along with my checking since none of my loans or cc's are with my checking account bank and hope for the best. I can't wait till this is over............

[tcreegan]

Hi Panacea,

Capitol One bought Chevy Chase Bank last Feb. Neither seems to have a stellar rep.

Chevy Chase Bank was the subject of two national class action lawsuits for violations of the Truth in Lending Act of 1968 involving as many as 7,000 mortgage borrowers[13]. A federal district court ruled against the bank in January 2007, but the ruling was stayed pending appeal to the U.S. 7th Circuit Court of Appeals. The Seventh Circuit Court of Appeals overturned the federal district ruling in September, 2008. The bank also agreed to pay $16 million to settle a class action alleging it charged late fees and high interest rates to credit card holders, although it denied wrongdoing[3].

...but your mileage may vary, if you are happy with them, that is what counts at the end of the day....

Tom in Colo

[Fallonedward]

Tobee, I took your advice a few months back (opened a new account and a local bank) and when BoA froze hubby's account yesterday they got $4.67. I hope they enjoy it.

it's cross collateral......

many people have loans where they bank... here's an example of why it happens:

when preparing or filing a bk...one usually stops paying their loans i.e. car loan...or the issuing bank also gave you a credit card, they freeze the checking account. awful...of course usually your checking account has your bill and food money is in there.... most times the Cu or banks freeze the account, not legally, but it's a hassle as you have now seen.

there is a moral to this story that i repeat over and over.......NEVER EVER eat where you poo......end of story.

your going to file bk.....then open an account with a small local bank...one that knows you when you come in and needs your business.

i'm certain more people have much to say on this topic and will share their reasoning as well.

[Fallonedward]

I have an account at a local CU Dearborn Federal Credit Union but no loans or credit cards with them, just a debit card attached to my checking. I wonder if I should move those monies to my new local bank? Anyone have any experience with DFCU?

tobee is correct, but there is one exception. Some banks, specifically Wells Fargo, and some CU's will freeze accounts just because the holder filed BK, even if the holder has no credit relationship with the institution. They claim to do this to protect the interests of the bankruptcy estate and demand to receive a release from the trustee or the judge in order to release the account.

As far as opening with a small bank, sure. Not necessarily a must, but it works. I chose to open with a large national bank and have not had a glitch. And I keep the convenience of widely available ATMs