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Commercial Bank and Checking Accounts
Checking accounts are deposit accounts that allow customers to deposit or withdraw any amount of money, subject to funds’ availability. Most commercial banks offer checking accounts to both individuals and companies.
3,404 Questions
All social security benefits are exempt from attachment by a judgment creditor, generally federal and state pensions are also exempt. Whether or not private pensions are exempt from judgment execution is determined by the laws of the state where the debtor resides. FYI, Social Security and other exempted funds should not, for reasons of clarification be commingled with other income.
Read the contract you signed when you applied for the card and I'll bet you find that provision is there. Bankers may like to get all the money they can, but they are VERY carefull to follow the law and the rules and regulations from FDIC or the state bank examiners. Little infractions cost them big fines when the examiners find them doing something wrong.
If the matter concerns the joint account it is not likely any of the funds would be subject to distribution to other family members. When bank accounts of any sort are held jointly they are generally held as Joint Tenants With Rights of Survivorship (JTWRS). This means that upon the death of one account holder the funds revert directly to the surviving account holder(s) and are not subject to probate procedure. If the banking agreement/signature card does not designate how the account is held, the state's default law usually presumes the account to be of JTWRS status.
Can the Chex System close your other checking and savings account from another institution?
No, it is a reporting agency and does not have the legal power to make changes of any sort to bank accounts. Banks and other financial instituitions however, use CS to determine the risk factor of clients or potential clients.
Can a business checking account be garnished for a personal debt?
If it can be proven that the debtor has placed private funds in the account to avoid seizure by a judgment creditor.
You need to talk to the attorney that drew up your trust(s). If the special needs trust is contained with your living trust, then is it in existence now, or when you die? Check the terms. If it exists now, then there should be a name of the trust, a trustee and you should obtained a taxpayer id# from the IRS. Note that a transfer into the trust is probably a taxable gift.
This is not a DIY project. Consult your attorney.
What is the lowest credit score you can have to really be considered for a commercial bank loan?
As of October 20, 2008, they are going to merge with T.D. BankNorth. A Credit Score of 640 is needed for a "Personal Loan". As of October 20, 2008, they are going to merge with T.D. BankNorth. A Credit Score of 640 is needed for a "Personal Loan".
If you are added to someone's checking account will the bank check your credit?
no they do not check unless you are placing or requesting a loan with individual/ you can be added per primary holders request/
How long do you need to wait after depositing a check in your bank account before writing a check?
- It depends on the bank. Some require up to two weeks. Two weeks was typical in the past and many banks have refused to change policy after the electronic funds transfer took over the banking industry. Check with the bank and find out what their policy is. If they want to keep you hold on to your money, move your checking account to a place that's more reasonable. Banks need to be responsive to their customers.
- Generally 3-5 business days.For some lending institutions it will also depend on whether it is a check drawn on personal or business account, your banking history (average checking account balance, length of time you've held the account, etc.). Obviously the best and safest option is to check the account before withdrawing any funds.
- If the check is a low-risk item (SSI, disability, most payroll checks) usually 3-5 business days. If the your account is a high risk account or the check is high risk (personal checks, cashier checks or money orders received from people you don't know) I would wait 10 business days. Checks usually clear within 3-5 business days, but banks usually don't find out if they bounce until 2-3 weeks after that. I used to have to process all the NSFs and returns, and most people don't realize that even with electronic processing, to find out if the check is bad CAN take awhile.
- A check is considered a contract, and when you write a check, people assume that you are writing them a good check and they can hold you to that. You're not supposed to write a check knowing you don't have money in the account. You can actually be sued by the DAs office for writing bad checks. Each county (At least definitely in California) has a Bad Check Restitution Program, and people who receive bad checks can call the DA and he WILL take legal actions against you.
Yes. Creditors cannot seize bank accounts except by due legal process. Which entails filing a lawsuit, winning a judgment, executing the judgment against the debtor's nonexempt property. The defendant is given an opportunity to claim exempted property before the judgment is rendered. A summons should never be ignored. Not appearing to defend a suit results in automatic default for the defendant.
That is not counted as income, it is debt. You are not being paid for working or asset liquidation, etc. You have to pay back the amount plus fees and interest. So it cannot be classified as income.
Maybe. Not in the sense that anything will be placed on their CR.However, when the BK Trustee, goes over your assets, might be difficult to assess, who the funds belong to. The way the account is set up (whatever is on the signature card) will more than likely be the determining factor. The account(s) probably won't be frozen (although that is possible). You need to discuss the details with your family members and your BK attorney.
What is concentration banking in cash management?
Concentration Banking is system whereby customers make payments to a regional collection center which transfers the funds to a the principal bank.
Acceleration of cash collections from customers by having funds sent to several geographically situated regional banks and transferred to a main concentration account in another bank. The transfer of funds can be accomplished through the use of depository transfer checks and electronic transfers.
Does having a joint checking account with someone with bad credit affect your credit?
Their credit is not reported on yours unless they mess up the checking account itself. If they bounce a check or start getting a lot of NSF's that will be on both of you. But their previous credit cannot affect yours. First, I would like to explain to you the difference between having bad credit, and having a bad report on ChexSystems.
Banks and credit unions usually report people to Chexsystems regarding delinquent bank accounts.
Financial companies and lenders report people to the 3 major credit bureaus regarding delinquent accounts.
So, with that said, having a joint checking account with someone with bad credit does not affect your credit. If that person goes into delinquent status with the checking account and the bank reports him or her to Chexsystems or some other check verification company, then yes your name and social security will be reported as well. Your report will stay on Chexsystems for at least 5 years, unless you have it removed by some means.
There are many banks that offer promotions for checking accounts for people with negative markings on their chexsystems report. A free consumer organization called "InfoAviator" has a pretty large list of them at infoaviator.org/finance/checking-accounts/2014/05/28/how-to-open-a-second-chance-checking/
How can a direct payment from a saving account to the lender become derogatory?
It might be that there was not enough money in the account to honor the auto draft. Or in quite often the request date falls on a holiday or "non banking day". Thereby making the draft when it is implemented, appear as a late payment. In short a bookkeeping error, that can and should be corrected asap.
How can a person find out why they were turned down at a bank to get a checking account?
The most direct and perhaps only way is to ask the person in charge of accounts at the bank involved. The consumer has the right to know why they are being excluded from having an account, getting a loan, and so forth.
Yes and no. One of the factors affecting your scenario would be assets and "seasoning", meaning how long have you had the money you have. Being able to document a lot of assets and lots of seasoning can many times compensate for a little bit lower credit score. And assets doesn't necessarily mean money in the bank - it can also mean retirement funds, stocks, mutual funds, cash value life insurance, etc.. Most lenders are looking for somewhere between 3 and 6 months of cash reserves (meaning 3-6 months of mortgage principal, interest, taxes and insurance) in the bank for at least a couple of months, after the downpayment and closing costs on the loan. The most important factor in qualifying for a mortgage is typically credit score, as this demonstrates how likely a borrower is to repay a debt as agreed, but having a lot of money in the bank can sometimes overcome a little lower qualifying credit score.
Why would you not be allowed to open a new checking account?
There are many reasons that a bank will deny a customer the opening of an account. 1.If you have been reported to chexsystems or telecheck, they may deny you for that reason. 2.if you still owe outstanding debt to an old bank, they may deny you. 3.If your credit is not sufficient.
If a writ of judgment has been granted it is a fairly simple process to execute it against nonexempt property belonging to the defendant. Generally when a bank account is levied the parties involved receive one business day notice. This however is not required in many states, so indeed the account can be seized w/o notification. Not all states allow joint accounts to be attached, therefore the persons involved should consult the state laws governing this issue. The best option to avoid any problems would be to remove the person from the account asap, which is perfectly legal.
The chex system reportage is for five years. There are banks who will allow a person to open an account under specific guidelines, such as a minimum security deposit. Another option is to have a relative open an account and add the person as an authorized account user. It is also possible to obtain a Visa or MC Stored Value Card. The fees can be rather high, but the card can be used similar to a debit card, to pay bills online, and so forth. Generally within 6 months after the BK discharge it becomes easier to find a bank willing to let the person open standard accounts.
First make sure that the major credit reporting agencies are notified that these checks were stolen. Secondly, you will need a copy of the police report and all documentation from the CRAs stating that this was fraudulent activity. Third, contact the reporting bank and present them with all of this information. They (if they are a larger institution) will forward your information to the loss prevention team to have them verify with the police report and the reports with the CRAs are indeed true documents, and they will then write a letter on your behalf to have you removed. It's a lengthy process, but it can be done. Answer Handling identity theft with a bank account is a little different than just dealing with identity theft. The FTC outlines how to deal with these situations. In general, if an identity thief steals your checks or counterfeits checks from your existing bank account, stop payment, close the account, and ask your bank to notify Chexsystems or the check verification service with which it does business.
Dispute any bad checks passed in your name with merchants so they don't start any collections actions against you. That way, retailers can be notified not to accept these checks.
The Fair Credit Reporting Act(FCRA) gives you specific rights when you are, or believe that you are the victim of identity theft.
You have the right to ask that nationwide consumer reporting agencies place "fraud alerts" in your file to let potential creditors and others know that you may be a victim of identity theft. A fraud alert can make it more difficult for someone to get credit in your name because it tells creditors to follow certain procedures to protect you. It also may delay your ability to obtain credit. You may place a fraud alert in your file by calling just one of the three nationwide consumer reporting agencies. As soon as that agency processes your fraud alert, it will notify the other two, which then also must place fraud alerts in your file.
Equifax: 1-800-525-6285
Experian: 1-888-397-3742
TransUnion: 1-800-680-7289
In addition to the fraud alert with the 3 CRAs above you can put a fraud alert on your chexsystems report or any CRA. For Chexsystems and Scan, they have a special affidavit form you can fill out online.
https://www.consumerdebit.com/consumerinfo/us/en/consumerreports/index.htm
You have a right to place a "security alert" in your Chexsystems or Scan report, which will warn anyone who receives information from your report that your identity may have been used without your consent.
Recipients of your consumer report are advised, but not required, to verify your identity prior to entering a business relationship.
They will require that you provide a notarized affidavit in order for your alert to remain on file for five years. If they do not receive the notarized affidavit, your alert will remain on file for ninety days. You can print the notarized form online as well and then have it signed by a notary. -you can also file disputes with chexsystems and the reporting bank To dispute write to:
Mail: Chex Systems, Inc.
7805 Hudson Road, Suite 100
Woodbury, MN 55125 Phone: By phone at 800-428-9623 or fax at 602-659-2197 If the reinvestigation does not resolve your dispute, you are entitled to request a brief statement be added to your consumer file outlining the nature of your dispute.
That happened to me and I included it in my chapter 7 but it made it difficult to open a new account. Open your new account now before you are reported to chexsystems.
