Creditors and Bankruptcy/checking account

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Expert: Regan Shinski - 10/19/2010


Question
I have a sister in debt with some court judgements and some collections. Her only income is Social Security and Disability.  We can't get a checking account but she needs direct deposit and EFT for utility bills.  Any suggestions as how to achieve this?

Answer
Hi Sharon:

I would find out why you can't get a checking account.  Most likely it's from prior negative information on an account but find out which system is reporting you.  Most likely it's a company like ChexSystems.  This company makes a database of prior bad accounts and then banks check this database before opening an account.  If you are in there, you likely cannot get an account.

I guess what I'm trying to say, is find out if you are in ChexSystems or another company like them - I'm assuming you know you are.  If you don't, ask a bank that you were turned down at which system they use.  Then do an internet search or go to a bank or credit union that does not use that system.  You will really have to shop around and do searches, but they are out there.

This would be the ideal situation so you get a "normal" checking account.  An alternative is some online banks offer direct deposit in conjunction with VISA/MC debit cards.  I hesitate to mention the names because I do not know how legitimate they are or if they are even FDIC insured.  Even a google search for direct deposit and chexsystems, accountnow, etc may yield some results.

Again, ideally you find a traditional bank as described above.  I offer no recommendation on the others.  Be vigilant.

Good luck,
Regan

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Regan Shinski

Expertise

I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.

Experience

Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA - University of Minnesota

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(private)

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