Need a bank account and debit card with bad credit.

[optimistic1]

Ok, so I need to stop my wife's bank account from being hijacked from a possible cross collateralization clause on a bank issued credit card.

So she needs to get a new bank account somewhere else, but she really likes a debit card.

There in lies the problem.

I know that most banks will want to run a credit check in order to issue her a debit card and checking account.

She has been past due on all of her credit cards for the past 90 days.

I know we will have a hard time doing this.


Does anyone have any advice on what particular bank might issue a debit and checking account regardless of the current credit situation?

[DUMBAGAIN]

Try US BANK. They have a program for "bad credit" folks. Even if you've been turned into to a bad check reporting system, they will set you up. I think its a "debit card" only account, meaning no checks, so you can't bounce anything. You can have monthly payments, such as insurance, rent etc withdrawn automatically just like a regular account.

If you check their website you can find information on it. Good Luck

[optimistic1]

I mean, we could live without the debit card, and keep the bank account open.

My other question is, if we stop doing direct deposit, and instead just walk in and cash her payroll check.

Would they try to give her back nothing and say we need to keep your whole check because of the whole cross-collateralization clause garbage?

[rrockinggramma]

credit unions do this, not as a rule, banks. My credit union refused to service us completely. Couldn't do anything, cash a check, deposit, anything. They just shut us right down.

I haven't heard of banks doing this to their customers, unless it is a small local bank perhaps. But the big ones, like B of A or Citi etc, they don't cross collateralize as a rule.

[optimistic1]

credit unions do this, not as a rule, banks. My credit union refused to service us completely. Couldn't do anything, cash a check, deposit, anything. They just shut us right down.

I haven't heard of banks doing this to their customers, unless it is a small local bank perhaps. But the big ones, like B of A or Citi etc, they don't cross collateralize as a rule.

Thats unsettling, so they did this to you for what reason? Not paying a bank issued credit card? Or, because you filed a Ch. 13?

[NowImDownInIt]

Cross collateralization.... Having a loan or credit card with the credit union you are banking with and then including those in your filing. Like rrockinggramma said, CU's are known for this, not banks. Is your wife with a credit union or a bank? Banks will normally open an account for someone with poor credit, but not if they are in ChexSystems or the TeleCheck database. If that is the issue, you can wait until after filing, because there is a good chance she'll be removed from TeleCheck/ChexSystems (like I, and many others, did)... or she can go to many banks that have Second Chance checking such as some local banks, Chase Bank, Woodforest National Bank (in some Wal-Marts in Southern States) and many others. Or try to find a bank that doesn't run you through TeleCheck or ChexSystems, though this gets harder everyday. I know that with BoA, you used to be able to open an account online, even if you were in those systems and weren't able to in person. I'm not sure if that's still the case. If all else fails, there are many online, direct deposit banks that offer a Visa or Mastercard debit card with no kind of credit or consumer check.

[optimistic1]

I just called our Credit Union.

My wife has a checking/savings solely in her name, no joint account.

They told me that the credit card that she was issued, is owned by a different bank called ELAN Financial Services, and the credit is extended from them. They stated, that If she is delinquent on that account, they do not have the authority to just empty out her accounts, it isnt the credit unions money, its ELAN Financials.

They also told me, that her overdraft line of credit, if included in the Chapter 13, will NOT be reported to Chex Systems. Although, they will stop all banking services if she becomes delinquent on the account prior to filing a petition.

So, we will continue to use her bank account for direct deposit, and continue to pay the minimum $25 a month towards the overdraft balance until we file.

This way, she and I can keep our bank accounts and debit cards.


I asked this information from the general operator, and then I asked to be transfered to their bankruptcy specialist. They both told me the same thing.

Regardless, when she deposits her paychecks, I will be transferring them to my seperate account, or withdrawing the money anyway, just to be on the safe side.

It might be beneficial for us to stop paying on the overdraft line of credit, but, the credit union is right down the road from us, its convenient, and I dont want to have to go through the trouble of opening a new one, and changing all the payroll at work. Im sure we can handle it.

[rrockinggramma]

that is good to know. Not all credit unions are as friendly in BK.

[optimistic1]

I feel lucky, but I am still going to be cautious of them, regardless of what they told me.

[sassiebaz]

Im going through the same thing...(makes me wonder if we are using the same CU)but like another poster stated, if you are NOT on chexSystems then you can get an account anywhere. The big banks dont run credit checks in order to give debit cards. That is automatic if you are approved for an account. My gosh, if everyone with a debit card had good credit....we'd all be in another world! I just talked to my CU and they said if we didn't pay on our VISA that they could end their agreement to uphold their end of the loan on our car. Well, right now Im like, come and get it! It's not even running. Still, my husband wants to make one more payment just in case our plan B doesnt work out for another vehicle. I say we should'nt pay.....

[relief13035]

We were turned down by Wells Fargo, but went to US Bank and they opened up a checking and savings for us with NO problem at all. I am one of their biggest fans now.