How can you open a bank account if you owe money at another bank?

Question

My friend just found out today he can't open a bank account becasue he still owes money from years back that was sent to collections. He needs an account in order to work at the job he wants. How can he get around this and still pay what he owes?

Answer 1

You may have to do some shopping at different banks in your area. I work at a local bank and if you owe anything an account will not be opened. Even after the funds have been paid the fact that he did owe can prevent a checking account from being opened, but a savings account may be considered. Every bank has their own policies and it will vary

Answer 2

This Site Might Help You.

RE:
How can you open a bank account if you owe money at another bank?

Answer 3

Let your friend know that there is another alternative for banking, he can go with a prepaid Visa or MC card account. It seems that most of them say they aren't checking against ChexSystems. That includes the one that I recently got, which also has no overdraft fees and has online bill pay too. It's at www.readydebit.com. You pretty much get all the same features as a bank account (FDIC insured, direct deposit, etc...). You don't have paper checks but the online bill pay makes that a moot point. Have him check it out as an option.

Answer 4

Not all banks check your credit record for opening an account. Try a smaller bank, or credit union. Old collections might not be collectible any more, depending on statute of limitations. Try to ask credit bureau to verify the debt, if they cannot, or company cannot produce records, the collections record may be erased.

Answer 5

well, if the account is in collections then he's definately been reported to the chex systems. that'll keep him from opening an account anywhere else. but, in the meantime, some collection agencies offer payment in full (of course),settlements in full( a percentage of the delinquency), payment arrangements or if push come to shove, ask someone to open one for him (family or really really good friends) or setup a direct deposit at a check cashing place, they charge more, but if all other options are no good then he doesn't have a choice.

Answer 6

Cristanine

If he discovered this fact , his duty was to ask the banker how

to go around his , other wise pick up the phone and ask them

how to cancel the recent account coz you need to open

another one , , , , how ever there is no reason prevent you to

open any accounts you want in several banks , here in

California its Okey . . . .

Answer 7

Maybe, but I'm not 100%

Answer 8

Thanks everyone for the answers.