BK friendly checking accounts

[katztoo]

Why would you have to move your account? We kept ours with Suntrust Bank and they have not said anything. Also, someone I know filed chapter 13 while having an account with Wachovia (now wells fargo) and they had a credit card with them in the 13 and they kept their account through the whole 13.

[df04527]

Most all banks and credit unions use your credit score these days and/or chexs. I have a in law who is a VP of a small to mid size bank in the Northeast. They always use your scores (their own they pull) and chexs. They started doing that a couple of years ago after relaxing those requirements prior. Wonder why..... (lol)

[Logan]

Most all banks and credit unions use your credit score these days and/or chexs. I have a in law who is a VP of a small to mid size bank in the Northeast. They always use your scores (their own they pull) and chexs. They started doing that a couple of years ago after relaxing those requirements prior. Wonder why..... (lol)

I've opened about 5 Che king accounts over the last 4 years and none of them checked my credit. I opened an account at Perkstreet in April and they don't but I know for a fact that they wouldn't approve someone who just tried to open other accounts.

[LadyInTheRed]

Why would you have to move your account? We kept ours with Suntrust Bank and they have not said anything. Also, someone I know filed chapter 13 while having an account with Wachovia (now wells fargo) and they had a credit card with them in the 13 and they kept their account through the whole 13.

Wells Fargo is known for freezing debtors' accounts when they file BK. They have been sued, in the 9th Circuit I believe, and the court ruled they didn't have a right to automatically freeze accounts. But, somebody recently reported Wells Fargo freezing another account, so they are apparently still doing it. It doesn't happen to everybody with a Wells Fargo Account, but it's better safe than sorry. Again, it's okay to leave a WF account open. But, the debtor should be prepared to do without whatever money is in the account, possibly until they are discharged.

[JessMN]

WF didn't freeze mine, but I think I had $3.07 in it when I filed. To be on the safe side I had opened an account at US bank and started having my direct deposits put there. I still have both accounts open - I use them for different things now - but the point is I was really worried since I owed WF a lot of $ in credit cards and I heard they tended to freeze accounts. Now my sis and her hubby are thinking about filing and they both bank at WF. I told them to be sure to ask their lawyer about their accounts, though I don't think they owe WF anything except their mortgage and they are planning on paying that....


ETA: LadyinRed was correct that WF had been sued: http://caveatemptorblog.com/wells-fa...uptcy-illegal/

[JessMN]

thanks gonzo. I went ahead and ordered the prepaid AMEX after making sure all of my utilities would accept that form of payment.

I'm a lot less leery of a prepaid AMEX than I would be of some company called GreenDot or upside card, etc.

Actually my ex-BF used Greendot Visa and had no problems. He couldn't get a checking account either... Point is, though, that YOU need to be comfortable with what you choose.

[catleg]

Bank of America does a soft pull, presumably to validate your identity.
I know this because I had placed a credit freeze on my records and could not open an account until I lifted the freeze.
They checked Experian.

[Gonzo]

Bank of America does a soft pull, presumably to validate your identity.
I know this because I had placed a credit freeze on my records and could not open an account until I lifted the freeze.
They checked Experian.

Makes sense. I already had another account there so I guess that's why they didn't check.

[luckstyl]

I got my rejection letter in the mail today from Ally. It said that it obtained information from TU and from Chex Systems, and listed the specific reasons as : 1- serious delinquency and collections, 2- level of delinquency, 3- number of accounts with delinquency, and 4- time since collection is too short.

Based on those reasons, it sounds like I'm being rejected solely based on my credit, and not from anything on Chex systems, correct? I ask because I have not yet received my Chex Systems report in the mail and I have no idea what would be on there that's causing me problems other than applying for multiple checking accounts in a short timeframe.

[DesdemonaB]

Hi All
As a user of the UpSide Card I can tell you it has one of the lowest fees on the pre-paid market – I got it in November 2010 and when I signed up the monthly fee was 1.99 after 6 months I was upgrade to premium service so no monthly fee. It has really kicked up in services in the last year, the on-line banking website was redesigned and they started a “saving” account attached to the checking called “rainy day reserve”. I even used it in London this week to withdraw cash out of an ATM for only 1.95. They have old school points for cash back – 2000pts = 20.00 nothing to brag about, but after a year I have almost enough bucks for 50.00 there that I plan to use next Christmas (only because I forgot about it this year )

I don’t see on the AMEX pre-paid site where you can have your paycheck direct deposited – or am I missing that? I only see moving money from an existing banking account or MoneyPak – which is what GreenDot really is. UpSide offers direct deposit for payroll etc. They offer a routing number and you can even write checks against the account. (this has a fee – 1 free a month, then 2.00 per check – I had to pay my water bill via check so it worked for me) The only perk I see from AMEX is that if you use the card regularly you MIGHT be invited to apply for an AMEX card. Credit approval pending of course.

I wanted to open a Perkstreet checking account after my BK discharged in March 2011, but I was declined due to open accounts on Chexsystems. Seems I did not include them on my mailing matrix so they did not receive any notification regarding the BK so my two overdrawn accounts were listed as open with a (-) balances. I had to snail mail my discharge showing the bank accounts were IIB and they removed the entries completely. I reapplied and Perkstreet accepted and I was able to open the account and my FICO scores were in the toilet barely hit 600 at the time.

One thing on Chexsystems, with no on-line disputing everything had to go thru snail mail and they don’t have to follow the 30 day requirement for response, so it could take over 45 days to resolve, per their website. I was cut and dry, accounts IIB and discharged so they delete both entries completely so the only thing on my report is inquires which last 5 years. Ouch.

As another poster said – it’s what you are comfortable with that truly matters. Good luck with everything, just don’t judge a card by its name. From what I see I have the better deal with UpSide then what AMEX is offering and my card doesn’t say pre-paid on the front of the card.

[luckstyl]

Good news - no derogatory information on my chex systems report, which I received today.

Do I have anything to worry about by using the prepaid Amex if I am discharging debt owed to them? They can't freeze those funds, can they?

[ValleYum]

Good news about your Chex report!!!

Lots of places don't accept AmEx from my experience. Hubby's employer sends out a couple of AmEx prepaids as gifts every year and I have a heck of a time using them.

[JessMN]

Good news - no derogatory information on my chex systems report, which I received today.

Do I have anything to worry about by using the prepaid Amex if I am discharging debt owed to them? They can't freeze those funds, can they?

I'd double check with your lawyer, but my initial thought is they can't freeze the funds because it isn't a bank account. Of course to be on the safe side, I probably wouldn't have gone with a card from someone I owed

[luckstyl]

I also have a greendot available, just in case. I think, though, that I'm going to put a small amount of money in my WF account and see if they end up freezing it.

[keepsmiling]

Just FYI since we are on the topic... I bought a TD Visa gift card to use for purchasing online since I don't like to keep giving out my debit card. Guess what? Groupon won't take it. After a bunch of "invalid gateway" messages I called them, and for whatever reason they just won't take prepaid cards. I wonder how many other sites won't take them.