Question about money in my checking account

[southernbelle]

My paycheck goes into my checking acct. via direct deposit every 2 weeks. Right now my acct. has about $1600 in it from my paycheck. Prior to my paycheck deposit, my account was in the negative. I am living in fear each day that someone will put a lien on my acct. or money will be deducted from a creditor I stopped paying, but once paid with my debit card or check from that account. Since I need to have money to pay my atty when I file, is it possible to withdraw any money not used for bill paying so that it doesn't mysteriously disappear? I am extremely afraid that this will happen because my local taxing authority placed a lien on my business checking account and I didn't know they could do that. Good thing I didn't use the account anymore.

The worst thing about the account issue is the fact that I have a credit card or loan with each bank I use. Would it look suspicious to open an account with a completely different bank just for purposes of direct deposit so that my money isn't taken and how much am I allowed to withdraw from the ATM so that it doesn't look like fraud?

Thanks again.

[CindyLou]

At this point I would stop direct deposit and get a paper check and live on a cash only basis. If you think anyone may put a lien on your checking account you can be SURE they will know when to do it! They will do it the day you are due to get your direct deposit. Changing banks may or may not solve this problem. Bill collectors have very savy ways of knowing where debtors hold accounts. There is nothing wrong or illegal about cashing your entire check or withdrawling all of your money. What I did was get a paper check from my employer, chashed it at the bank it was drawn on (my employers bank), changed it into either money orders or travelers checks, and moved on with life. AND KEPT RECEIPTS FOR EVERYTHING...because now I didn't have the luxury of the debit card statement. I just got a shoe box and dumped in all the recepits. Easy enough and never even had to show them in the end. Good luck.

[southernbelle]

I asked a week ago about getting a paper check from my employer, but because I work for the State, they require us to all have direct deposit. Because of this rule, I didn't know how suspicious it would seem to withdraw it all the day after it hits my account. I could get money orders to pay bills, but a few come out of my account automatically. Thanks for the advice because I know for sure that if my account is wiped out, I would be devistated and in a lot worse shape than right now. I guess I'll just get into the habit of rushing to the bank the day of the deposit and hope I beat the bill collectors.

[CindyLou]

It is your money. You are entitled to withdraw it immediately if you choose...that cannot be fraud. Again it is your money. No one can tell you by which means you have to spend your money...cash check credit debit, etc.....you choose that...... Another option that they cannot garnish is a prepaid visa. Western Union has one that you can use with direct deposit from an employer. Check into it. This would be another safe way. You can withdrawl fund from any ATM with low fees.

[southernbelle]

Thank you soooo much. This is a lifesaver. The Western Union thing sounds perfect because my employer will let me transfer my money anywhere, but they just don't want to deal with printing paper checks. I haven't had many restful nights contemplating what "new tricks" the creditors will come up with this week. I just need my money to life off of, and can't afford to have someone wipe out or freeze my accounts. What would I do without you guys. This site is the best. Thanks again.

[SinkingFast]

I'd also suggest stopping the auto debit payments. Arrange to pay those bills otherwise.

After you get paid, withdraw your pay. That way there's nothing there for your Creditors to get. Maybe even change banks as well. Close that acct and move elsewhere. You have a legit explanation for why you need to change banks.

Save all receipts, Money Order stubs from paying bills, and such.

For most of us, the Trustee simply refers to Bank Acct Statements to see where we spend our money. In your case, you may need to actually supply receipts. So, Document, Document, Document where the money goes for when you do file.

[CindyLou]

http://www.westernunion.com/info/osPrepaidMC.asp

here's the link to the western union Prepaid mastercard. They do not ask for your social. They send you a card with your name on it and you go into the store pay the $30.00 and activate it. Then the fees are very minimal once you use the direct deposit, which I think is free. They provide you with a routing and account number to give your employer that is just like a checking account to put on the direct deposit form to give your HR department. This should solve your worry problems for now and give you some much needed rest, girl!!!! P.S. You can order it today....and you don't have to give them any money to get the card. They send that for free. You don't have to pay the activation until you go in and activate it. It really seems gimmick free. I did a LOT of research for my brother and this seemed like the best option. If you go with it, let us know how it worked for you.

[CindyLou]

www.westernunion.com. There is a minimum funding amount of $30 and a maximum funding amount of $950 per transaction or $950 in the aggregate within a 24 hour period (inclusive of the load fee). You may perform up to 10 Western Union Prepaid Services transactions to load value onto the Card within a one month period. If you attempt to perform a Western Union Prepaid Services transaction that would exceed these limits, your transaction will be denied.

Funds can also be loaded onto the Card by direct deposit of payroll funds if your employer offers direct deposit as a pay option. You may only designate one employer to send direct deposit to the Card. Visit www.westernunionprepaidservices.comwww.westernunionprepaidservices.com for the current month and the two immediately preceding months. Additionally, you can check your Card’s balance and hear the last five transactions by calling 1-866-737-4949. However, unless you confirm to us (either during the enrollment process or on the web site) that you have access to a personal computer and printer outfitted with Internet Explorer, Netscape Navigator, or some similar Internet browser, and that you agree to receive your statements electronically at www.westernunionprepaidservices.com, we will also mail your statement to you at the address shown in our files. You will be charged a Monthly Statement Fee of $2.00 for each statement mailed to you. You will not be charged a Monthly Statement Fee for electronic statements.

Your statement will contain certain information about the transactions conducted with your Card, value loaded on your Card, fees assessed against your Card during the period, as well as your Card number, the balance on your Card and other important information. You may request a paper copy of a particular statement for a $2.00 fee. To request a paper copy of a particular statement or change the manner in which you receive periodic statements, please call 1-866-737-4949.


Fees and Charges

A one-time non-refundable Activation Fee of $9.95 will be deducted from your Card Account at the time of your initial value load.

The first PIN selection can be done at no cost. Subsequent PIN selections will be charged $1.00 per PIN selection.

There is a Monthly Account Maintenance Fee of $4.95 per month while the Card is in use and has a positive balance. If the balance of the Card is less than $4.95, the balance of the Card will be applied to the fee.

Each ATM cash withdrawal will be charged a Cash Withdrawal Fee of $2.00. If you use an ATM not owned by us, you may be charged a fee by the ATM operator including a balance inquiry even if you do not complete a withdrawal. There are no limits regarding the number of times you may withdraw cash per day, however you may not withdraw more than $500 per day from an ATM or teller.

A Cash Advance Fee of $4.00 will be charged when using the Card to receive cash from a teller or non-ATM transaction.

A Lost or Stolen Card replacement fee of $10.00 will be assessed when we replace a lost or stolen Card.

You may elect to receive your Card sooner by agreeing to pay $19.95 for a Card Rush Delivery Option.

A $10.00 Account Liquidation Fee will be assessed if a check is issued for funds in your Card Account.

An Overdraft Fee of $25.00 will be assessed for each transaction which exceeds your available funds.

A $2.00 fee will be assessed for each mailed statement or for requests for a particular statement.

A $2.00 fee will be assessed per call for live customer service assistance.

A $3.95 Western Union fee will be assessed each time you load funds with a Western Union Prepaid Services transaction.




Confidentiality and Privacy
We may disclose information to third parties about your Card or the transactions you make:

Where it is necessary for completing transactions;

In order to verify the existence and condition of your Card for a third party, such as merchant;

In order to comply with government agency, court order, or other legal reporting requirements;

If you give us your written permission, or

To our employees, auditors, affiliates, service providers, or

To our employees, auditors, affiliates, service providers, or attorneys as needed.


We may also share information about you, your Card or the transactions you make with the Card sponsor, Western Union Financial Services, Inc. and its affiliates (companies that control, or are controlled by, Western Union, or are under common control with Western Union), including information about your participation in the program and the transactions you make, personal information, and any other information we may have about you. You agree that Western Union may use and disclose such information in accordance with its Privacy Policy which was included in this Card carrier package.

If you do not want Western Union or us to share any such information we may have about you, you should notify us by calling 1-866-737-4949, by visiting us at www.westernunionprepaidservices.com, or by writing to us at the address provided in this Agreement. In your correspondence, please include the following information: your Card number, name, address, city, state, and zip code.


Our Liability for Failure to Complete Transactions
If we do not properly complete a transaction from your Card on time or in the correct amount according to our Agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance:
If, through no fault of ours, you do not have enough value available on your Card Account to complete the transaction;

If a merchant refuses to accept your Card;

If an ATM where you are making a cash withdrawal does not have enough cash;

If an electronic terminal where you are making a transaction does not operate properly, and you knew about the problem when you initiated the transaction;

If access to your Card has been blocked after you reported your Card lost or stolen;

If there is a hold or your funds are subject to legal process or other encumbrance restricting their use;

If we have reason to believe the requested transaction is unauthorized;

If circumstances beyond our control (such as fire, flood or computer or communication failure) prevent the completion of the transaction, despite reasonable precautions that we have taken;

Any other exception stated in our Agreement with you.




Your Liability for Unauthorized Transfers
Tell us AT ONCE if you believe your Card has been lost or stolen. Telephoning is the best way of keeping your possible losses down. If you believe that your Card has been stolen, call us immediately at the number listed below. If you notify us within two (2) business days, you can lose no more than $0 if someone used your Card without your permission. If you do not notify us within two (2) business days after you learn of the loss or theft of your Card, and we can prove that we could have stopped someone from using your Card without your permission if you had promptly notified us, you could lose as much as $50. If you do not tell us within 60 days you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If your Card has been lost or stolen, we will close your Card Account to keep losses down.


Other Terms
Your Card will expire in two (2) years from the date of issue. Your Card and your obligations under this Agreement may not be assigned. We may transfer our rights under this Agreement. Use of your Card is subject to all applicable rules and customs of any clearinghouse or other association involved in transactions. We do not waive our rights by delaying or failing to exercise them at anytime. If any provision of this Agreement shall be determined to be invalid or unenforceable under any rule, law, or regulation of any governmental agency, local, state, or federal, the validity or enforceability of any other provision of this Agreement shall not be affected. This Agreement will be governed by the law of the State of South Dakota except to the extent governed by federal law.


Amendment and Cancellation
We may amend or change the terms of this Agreement at any time. You will be notified of any change in the manner provided by applicable law prior to the effective date of the change. However, if the change is made for security purposes, we can implement such change without prior notice. We may restrict, cancel or suspend your Card or this Agreement at any time. You may cancel this Agreement by returning the Card to us. Your termination of this Agreement will not affect any of our rights or your obligations arising under this Agreement prior to termination.


Information About Your Right to Dispute Errors
Records detailing your use of your Card may be communicated to you by accessing your Card Account at www.westernunionprepaidservices.com

[southernbelle]

I tried signing up for the card and it doesn't ask for your social sec. no. until you check the box that asks if you are a US Citizen. Once you check the box, another box appears that asks for your SS#. If I apply for it, does it leave a trail for creditors when I put in my social? Can they still access or freeze this account too? Thanks

[southernbelle]

This is the reason why they ask for it (according to their site):

Social Security Number
Obtaining A Card: The USA PATRIOT Act is a federal law that requires all financial institutions to obtain, verify and record information that identifies each person who opens a Card Account. What this means for you: When a consumer opens a Card Account, BankFirst will ask for the consumer's name, address, date of birth and other information that will identify the consumer. The consumer will need to provide his/her Social Security number if a U.S. citizen or personal Tax ID or passport number if a non-U.S. citizen. BankFirst may also ask to see your driver's license or other identifying documents. Western Union may provide the information given to the Western Union Agent clerk to BankFirst.

[CindyLou]

hmmmm...this is a prepaid matstercard card, not a bank account. I woudn't think it would fall under the same laws as banking, but of course I can't be sure. why don't you call them up and ask them. Ask them if this account if ever subject to liens or garnishments by creditors like a checking account. They should be able to tell you. It says VERY clearly that no autodebits can occur, meaning that it is different than a regular bank account. At the least I think it would be harder. Sorry, I dont' remember them asking for a social. I wonder if that's new.

[southernbelle]

I did a little searching and found an independent article that states:

"Unlike setting up a bank account, anyone can obtain a stored value debit card by simply filing out a short application and proving identity. This card is truly the answer for the unbankable plus those who have a problem controlling their spending habits.

A few consumers, who are experiencing financial difficulties, prefer using a stored value debit card over their bankcard because of security and access to emergency cash. A creditor can lien a regular bank account; however, he cannot lien a aggregate account. "

I'm calling to ask questions first, but at the very least, it sounds safer than what I have now. Thanks again Cindylynnsmith for sharing your research and for being patient.

[CindyLou]

Great find on the article. Looks like you answered your question! That's valuble information for this forum regarding whether a creditor can garnish a prepaid account. We have learned something new today!! Thanks southernbelle!! My gut was telling me they couldn't but I had nothing concrete to prove it. Thanks for finding that. I would certainly go that route and protect your paycheck. It looks easy and their fees look low if you use the direct deposit. Let us know how you like it.

[southernbelle]

Here is the whole article. Hope it helps someone else like it has for me. Thanks again.
file:///Users/Angie/Desktop/Liens%20and%20Prepaid%20Debit%20Cards.webarchive

[southernbelle]

Sorry this is the link.

http://www.stord.com/newsarticle.php?id=17