Wife works for creditor (bank)

[artgood]

My question:

Wife works for one of our creditors (a bank). Her paycheck is direct deposited in to the checking account we have at that bank. We are not sure if she will be able to have it direct deposited anywhere else per her employment. Can the bank take her paycheck/money in our accounts?

[ccsjoe]

artgood,

I do not know whether the bank can use right of offset against her paycheck since they are the employer as well as the creditor, I see major labor law issues here.

What I can tell you with certainty is that no financial institution can force its employees to exclusively use their own accounts. I have worked for various financial institutions, including national banks, and never once was I forced to receive my direct deposits anywhere else than at my bank of choice. I was strongly encouraged, but not "forbidden" or forced. There is case law established in this matter already. She should be able to open an account anywhere she pleases and direct her employer to deposit funds there. Worst case scenario, she can start taking paper checks instead of dd.

Good luck

[artgood]

That's good to know. We just opened another checking account at another bank so we'll see how it goes.

[ccsjoe]

Should go just fine, remember, legally they can not force, only strongly encourage...lol. So if they don't want to do or delay doing direct deposit to new bank, just have her take paper checks for now.

[tobee43]

they can't garnish her wages unless they get a judgement and then put the lien on the account to garnish....

actually, i know someone that owed a bank a ton of money...it worked out she went to work with the bank and became a manager...and pd them back..

if you wife is worried about her job, i would advise her to be up front and honest with her boss...tell them straight up what's going on and maybe she can work out something with them....she doesn't want to feel uncomfortable at work...so it's best to be in right out on the table....unless it's like 24 million you guys own them...then i'd just run for the hills!!!

[Flamingo]

It also may be part of her employment agreement that if she files bankruptcy, she may need to inform her employer. Depending on who one works for or the position, that clause is in many employment contracts.

[ccsjoe]

Or if she has securities licenses...

[artgood]

She is a bank teller supervisor. I'm not sure what kind of contract she filed with her employer - she probably doesn't remember either since she's been with them for 9 years.

[ccsjoe]

Probably no BK clause to worry about then.

[Flamingo]

She is a bank teller supervisor. I'm not sure what kind of contract she filed with her employer - she probably doesn't remember either since she's been with them for 9 years.

She didn't file a contract with her employer...she either received a letter from the employer indicating her salary and that she is an "at will" employee to abide by the company's policies and given a link to or a hard copy of their employees' handbook or she signed an employment contract which could have numerous pages of clauses as to employment. Ignorance is not an excuse...have her find what she signed (she should have retained a copy or can get a copy from her HR Dept.) and review it to be on the safe side since her employer is in the financial arena...

[ABC]

She is a bank teller supervisor. I'm not sure what kind of contract she filed with her employer - she probably doesn't remember either since she's been with them for 9 years.

IF they are a creditor , then they will know right away , as in same day or next day.

I don't know why you'd have to call them to repeat what they already know. Also, I don't believe they can fire her. If so then this bank shouldn't be soliciting deposits and credit from their own employees
( my God, they know how much she makes , why extend credit if it will be an issue. You'd think they'd be MORE judicious with their own employees)

Do I speak from experience ? Yes, filed recently , work for a Bank, bank with same bank, and had one card. Oh, also I sometimes issue new credit. Not a word. If anyone says anything to me , it'll be just more $$$ for my attorney.

[artgood]

ABC - that's good to hear. The fear of my wife losing her job has been the biggest hurdle for us to overcome with all of this.