The bank closed my checking account because I owed them money.?

Question

I owed the bank money, and never paid it, and they closed my account. They reported the default to some sort of company. What is the name of that company so I can check and get a free copy of that report? I actually paid them the money I owed today. Can they reopen my account or another account?

Answer 1

ChexSystems is the most common check reporting company out there. You can get a copy of your consumer report at www.ConsumerDebit.com.

Most banks that I know will let you re-open an account after you pay off a debt like that, but not all will. A few banks will not even let you open an account if you have even a paid off debt reporting on your report.

If you are looking for a new checking account, I would suggest finding one that charges low overdraft fees or will offer you overdraft protection. When I worked in banking, I noticed some banks would take full advantage of those who often overdrew their account, whereas others were a lot nicer (just so long as you did not make a habit out of overdrawing, and when you did, you brought you balance current quickly). If you overdraw a lot, you may want to find a bank that is cheaper for your needs.

You should also ask for a letter from your old bank stating that you did pay off your debt. Your consumer report will not state that if you just paid off the debt.

You may also consider not opening a checking account. With overdraft fees, you can easily be paying an extra several hundred of thousand dollars to the bank. If you keep a savings account only and pay will cash and money orders, you may find that a much cheaper alternative (you can't overdraw your own wallet).

Answer 2

If it's with the same bank, the answer is yes. It's called the right of setoff. Since the account is new, the recovery dept is not aware of it. Once they see it, they will take any amount, even if is $100. I suggest you go to a different bank and close the account

Answer 3

Call your bank and ask if they could tell you the name of the company they reported your default to. Then, ask that company if you could open another account with your bank.

Answer 4

They probably sold the debt to a collection agency. If this is the case, the bank is out of the loop and you will need to settle the dispute with the agency itself.