another bank question

[DYLAN150]

I owe several major banks for credit card debt. Have not paid them in over two years. Question, will this stop me from opening a checking account with a new bank?

[frogger]

It depends. Depends on if the bank runs a credit report before allowing you to open an account or not. Some do, some don't.

[LadyInTheRed]

Many banks use ChexSystems to determine elgibility for a checking account. You might want to pull your Chex report to find out what is on it. https://www.consumerdebit.com/consum...port/index.htm

[GoingDown]

I owe several major banks for credit card debt. Have not paid them in over two years. Question, will this stop me from opening a checking account with a new bank?

Will it stop you from opening a checking account at a different bank? No. They may not offer you a credit card or overdraft protection tied to a credit card from them, if they don't like what they see on your credit report, but you can still open an ordinary checking account at a new bank.

Defaulted credit card debt is not what usually stops a person from opening a new checking account.

What usually causes a problem is when you have a checking account that gets overdrawn because you wrote a bad check, with insufficient funds, and then you just abandon the checking account leaving it in the red, with a negative balance. That gets reported to ChexSystems, and then they often will not open a new account for you until that old account gets cleared up and paid off.

[tobee43]

i sometimes do not understand why people as soon as they know they are going to file do not open new accounts..before the chance any problems could arise from the outcome of the filing.

as soon as we decided to file we actually took out all money from our bank we had for over 25 years. we were not connected with any credit cards or loans or such, but was concerned since we had auto deposit into that account. so we immediately, upon making the final decision opened another account at another (out of state) bank. actually years later that account still has approx $100 in it, i never closed it, but it was never bothered.

i think the time to be the most concerned is if you have a checking, savings example, with your credit union and you have a credit card and your car loan there, that could be a real problem. it's best just to get a brand new account somewhere else where you have no credit attached to the bank you use for regular checking accounts.

once you get in the ChexSystems, it's doubtful you will get a checking account for YEARS from any bank, since they are a bank to bank system. you don't ever want that if you can help it as GoingDown has explained.

[jwmc1]

It can affect your ability to open an account and get a debit card. Especially if you want to get it from a credit union. I think you will be ok...if not there are other alternatives. Why don't you just file for bk and get rid of the problem? Otherwise you will worry about this for years. Time to put an end to it.

[DYLAN150]

If I filed for bankruptcy, it would result in a chapter 13. I had no problem in opening a new account btw.

[catleg]

There is another company besides chexsystem which is captive of a few major TBTF banks, created their own to save fees no doubt. I was able to open new accounts with rock bottom credit scores while in CH13. Got Chase, BofA and Wells Fargo. PNC required a human override. It helps to have extras, like during superstorm sandy when it looked like things were pretty close to going medieval.

[avengers]

i sometimes do not understand why people as soon as they know they are going to file do not open new accounts..before the chance any problems could arise from the outcome of the filing.

You have to be careful with this also. I am in the pre-filing stage of chapter 7. Since I have a Line of Credit with Wells Fargo and a checking account with Wells Fargo, we decided to open a new account and stop using the Wells Fargo account. (I've heard that Wells Fargo is particularly bad wrt bankruptcy--often freezing accounts, meaning that, if you have direct deposit, you can't get your pay checks and they will just set it off against any debt you have.)

So we found a new bank, started direct deposit there and stopped every auto pay from Wells Fargo . . . or at least we thought we did. Turns out there were several auto-pays that remained on Wells Fargo. So Wells Fargo has the nerve to actually pay the auto-pay, then charge $35 for an overdraft fee! The first time it happened, I actually deposited money into the account to keep the balance positive. Then it happened a couple more times, each time with Wells Fargo charging me an overdraft fee. I'm now at a negative $172 balance. We've checked and double checked now and all auto-pays are gone. But, with my limited money, I really don't want to pay the $172 that I don't have to.

Actually glad that the credit union I picked actually gives you a choice--if you try to auto-pay or use a debit card in an amount more than you have in the account, they simply won't allow it to go through. So much better than paying it, then charging me $35 for the privilege.

[LadyInTheRed]

Turns out there were several auto-pays that remained on Wells Fargo. So Wells Fargo has the nerve to actually pay the auto-pay, then charge $35 for an overdraft fee! The first time it happened, I actually deposited money into the account to keep the balance positive. Then it happened a couple more times, each time with Wells Fargo charging me an overdraft fee. I'm now at a negative $172 balance. We've checked and double checked now and all auto-pays are gone. But, with my limited money, I really don't want to pay the $172 that I don't have to.

You should have called and/or written Wells Fargo the first time and told them that you closed the account and would not pay for any automatic charges they let go through. Don't pay another penny to Wells Fargo. List the so-called overdraft as a debt on your BK petition.

[avengers]

You should have called and/or written Wells Fargo the first time and told them that you closed the account and would not pay for any automatic charges they let go through. Don't pay another penny to Wells Fargo. List the so-called overdraft as a debt on your BK petition.

Thing is, I didn't close the account, I just stopped using it (or so I thought).

[LadyInTheRed]

Thing is, I didn't close the account, I just stopped using it (or so I thought).

In that case, forget my first point, but not my second. I suggest you close the account so you don't risk automatic payments and fees after you file BK.

[bcohen]

I second the above advice. If you are definitely planning to file for bankruptcy, then why "throw good money after bad" to Wells Fargo? Simply ignore their letters, let them close the account and write off the alleged debt. When you file, simply include the alleged debt, and it will be discharged. Also, do not worry about Wells Fargo threatening to report you to ChexSystems, which will supposedly prevent you from opening another account. Once you discharge the debt, ChexSystems will remove the account from your report. I had this done after I filed.