topic Re: Anyone see any risk here? in Relationships and Money

Anyone see any risk here?

Booner72 — Fri, 13 Jul 2012 00:31:51 GMT

DB (Dear Brother) is hiding from creditors so he isn't doing anything w/ his credit and can't have an inquiry. He is a cash only guy, and is currently (literally) walking around with thousands in cash, which makes me seriously worried all the time.

If I opened up a new savings account that had a debit card with it (in my name) is there any risk here? He couldn't overdraft a savings, right?

I know, I'm an enabler and our dynamic is unhealthy. But I'm just wondering if anyone sees any problems with this in terms of it harming my credit in any way, shape or form? I am pretty sure he's got overdrafts out there so he couldn't get his own checking, and maybe if they give him a savings without pulling credit? But they wouldn't do that, right?

Also, any bank referrals are welcome, too. I was thinking of Selco credit union. And I don't care if I get an inquiry to help him.

Thanks in advance!

Re: Anyone see any risk here?

DaveSignal — Fri, 13 Jul 2012 00:51:20 GMT

He just needs to find a good bank. There are not many. I have had bad experiences with: Wachovia, BoA, CapitalOne, BB&T.... possibly others that I can't remember.

I have never been charged an overdraft fee (or any kind of fee whatsoever for anything) with USAA. This is not the only reason my bank is great, but you mentioned your brother is weary of overdrafts. I know USAA is not available to everyone, but I am sure that other good banks exist. It takes some work to find a good bank.

Re: Anyone see any risk here?

drkaje — Fri, 13 Jul 2012 01:05:13 GMT

The risk? He may never grow up and you'll be doing stuff like this forever.

There's a good chance he can overdraft with a debit card and end you up with a nottion in ChexSystems, too!

Re: Anyone see any risk here?

pizzadude — Fri, 13 Jul 2012 03:52:39 GMT

drkaje wrote:
The risk? He may never grow up and you'll be doing stuff like this forever.

There's a good chance he can overdraft with a debit card and end you up with a nottion in ChexSystems, too!

Also I believe that most savings accounts have limits on the number of transactions that you can do each month. Not sure why that is, but I seem to recall seeing something about limits. So it may stop it from working or might rack up a lot of fees for excessive usage.

Has he considered using a reloadable pre~paid debit card ?

Re: Anyone see any risk here?

marty56 — Fri, 13 Jul 2012 08:37:14 GMT

pizzadude wrote:
Has he considered using a reloadable pre~paid debit card ?

+1, IMHO your only safe option.

Not to be rude but you need to cover yourself from ID theft as well.

Re: Anyone see any risk here?

FrugalRican — Fri, 13 Jul 2012 14:36:56 GMT

Okay, the fact that I can describe different several scenarios can already lend to the idea that it is a BAD one.

#1: You can overdraft a Savings account. It takes creativity but it can happen. Whether it's because there was a debit card attached to a checking/savings, or because someone deposited a check while making a withdrawal and then the check bounces, or a few other ways... it's possible. At worst, whatever the transaction is, gets reversed, but the fee doesn't. But even an account with $1 can get reported to ChexSystems/Qualifile/etc, etc, etc...

#2: Some banks don't allow Savings accounts with Debit Cards, doesn't mean it doesn't happen. Some banks will make you sign a form now that allows you to opt-out of overdrawing the account. Some don't.

#3: Some banks have a # of transactions you can do, but they'll let you do more... for a fee. I've seen it for the Savings and Money Market accounts. Say he is allowed 6 transactions a month and for every subsequent transaction he is charged $5. Guess what happens if he withdrew time #8 and leaves 2 dollars in the account.

Now, I can't speak for every bank, because some do "impose" safe-guards for savings account. But you are putting yourself at the mercy of whatever loophole a bank might have for this.

So I'll give a +100000 to what Drkaje said.

Don't enable him. I've seen it happen way too many times and then I get asked why someone was placed on Chex because of their "family member".

Just yesterday I heard a "My effing sister" story...

Re: Anyone see any risk here?

Booner72 — Sat, 14 Jul 2012 00:17:49 GMT

Selco has an account that doesn't have the Visa logo, so not sure how he could screw that up. But he needs an account in his own name, he needs to grow up, he is irritating me right now.

If someone comes after him to go to Court for a judgment, he can take his money out before that happens, right? The main issue is a repo from 2009 or 10, they took the car but never notified him of how much he owed after the auction - never heard from them again other than the continue to report interest every month and the balance rises. I know in OR there are strict REPO laws related to collection and none of them were followed.

Though I also know that CA's get judgments and take people's money without even giving them warning.

He is opted out.

Re: Anyone see any risk here?

drkaje — Sat, 14 Jul 2012 00:51:15 GMT

When a judgment is issued, it's their money. Besides, anyone given warning would immediately withdraw the money. Opting out is fine but doesn't mean they have no reason to attempt contact and collect the debt.

Your heart's in the right place but it's hard to imagine this not ending poorly. Also, in the bigger picture you may not really be helping him at all.

What if he gets sued and they freeze your account until it's proven he had no money in there too?

What if he overdrafts and they take money out of your account?

I personally wouldn't do it. Getting good credit took a lot of work and I'm unwilling to let anyone blow it. :)

Re: Anyone see any risk here?

Repo-ed — Sat, 14 Jul 2012 00:55:52 GMT

The good news is you recognize you are an enabler, and that the relationship is not healthy.

The even better news is, when this REALLY goes south, you won't be surprised by any of it.

Best of luck!

Re: Anyone see any risk here?

pizzadude — Sat, 14 Jul 2012 01:01:21 GMT

If he really won't get an account then i really think that a prepaid debit card is the only option that won't put you at risk. Also assuming that your names aren't similar.....he wouldn't be able to use the card in your name at places that actually look at the name or ask for ID ( there are still some places that check ).

Unless he already has a judgement against him, he would have plenty of time to clear out his account before anything could be garnished.

Re: Anyone see any risk here?

Booner72 — Sat, 14 Jul 2012 05:51:01 GMT

Thanks for the replies and I knew you guys would set my mind to reason. My credit means a lot to me as ya'll know, as it is to all of us.

So the prepaid Visas........You can just keep putting money on it and spending it? Is there a limit to how much can go on there? What if it gets lost? That doesn't sound like such a grand plan to me. He works concrete and when he works prevailing wage he can make some money.

Re: Anyone see any risk here?

pizzadude — Sat, 14 Jul 2012 09:21:33 GMT

I think that some of the pre~paid cards may actually offer loss protection, but not all ~ also as I'm sure you're aware there might be some limits and there are plenty of fees to go around. I'm sure that others will have some good suggestions for specific cards.

It's not ideal but it is a much better choice than him either carrying around $4,000 in his pockets or stuffed in a mattress or creating a scenario where your credit could be placed in jeopardy.

Re: Anyone see any risk here?

Booner72 — Sat, 14 Jul 2012 14:54:47 GMT

Thanks, Pizza! I agree - I think he's just going to have to bite the bullet and get a credit check. He said yesterday he liked Bank of the Cascades as they always cash his payroll checks and are super nice......We'll see if he got an account there.

I changed my brother's last name last week, and our county sent me a letter a couple days after court just letting me know that a judgment was entered. So at least we will get a letter from the court, if a judgment gets entered, if we don't hear from the CA first.

Re: Anyone see any risk here?

pizzadude — Sat, 14 Jul 2012 15:03:26 GMT

Booner72 wrote:
Thanks, Pizza! I agree - I think he's just going to have to bite the bullet and get a credit check. He said yesterday he liked Bank of the Cascades as they always cash his payroll checks and are super nice......We'll see if he got an account there.

I changed my brother's last name last week, and our county sent me a letter a couple days after court just letting me know that a judgment was entered. So at least we will get a letter from the court, if a judgment gets entered, if we don't hear from the CA first.

I hope that it works out well for him ~ keep us posted ! And the one good thing I see out of this situation is that at least he seems to be wanting your help, so hopefully this will lead to independence and good financial decision making....or at least a few baby steps in that direction...

Re: Anyone see any risk here?

Booner72 — Mon, 16 Jul 2012 00:13:27 GMT

Hopefully so.

Re: Anyone see any risk here?

1sweetheart — Sun, 15 Jul 2012 03:31:44 GMT

Have you thought of mentiining to him to get a reloadable visa/mastercard? Some allow up to 10k on the card. No credit check nor overdraft fees. It simply wouldnt allow a transaction go thru.

Re: Anyone see any risk here?

webhopper — Sun, 15 Jul 2012 07:08:01 GMT

Another thing that hasn't been mentioned here so I will mention it... Irs gets notices from banks if a client deposits more than 10k in cash. The Irs could come after you for.failing to claim this cash as income. Also the bank has procedures for making sure they aren't depositing illegal money. Nothing says illegal more than you walking in and depositing thousands in cash.... something to think about

Re: Anyone see any risk here?

rckstrscott — Sun, 15 Jul 2012 07:31:55 GMT

As a previously crappy, sometimes shady dude, and 10 years removed from it, I can tell you this:

PREPAID VISA CARDS - DO IT!

It was the first thing that I used in order to get myself out of the cash only rut, and into the idea that I could manage my money better. Yeah, you have to pay a little to load them, but you get online interfaces that almost, just almost make you feel like a normal human being. You are able to see your accounts online, you are able to track.

It isn't a solution for everyone, but I think in your brothers case, this is the best solution; for now.

-scott

Re: Anyone see any risk here?

aussiesareforever — Mon, 16 Jul 2012 22:43:25 GMT

I have to put a plug in for the AMEX Prepaid card- which I've been using to pay my cable bill for seven months now and no, I haven't gotten an invite to app for the zync. And no, they haven't even SP me yet. But that is just by the way.

The card is FREE. There are no fees. You can load it by buying a card at Walmart (or a bank account) and you can buy the card for your brother and load the funds for him.

Re: Anyone see any risk here?

FrugalRican — Tue, 17 Jul 2012 14:33:38 GMT

webhopper wrote:
Also the bank has procedures for making sure they aren't depositing illegal money. Nothing says illegal more than you walking in and depositing thousands in cash.... something to think about

They do, but it's not the act of depositing $11,000 in cash that makes it suspicious.

It's when you tell a person the "why" and then they decide they want to deposit $9,000 instead.

But I've seen plenty of people who sell a car, or property, or other things that make that one-time deposit and have a valid reason for doing so.

But I've also seen people who will deposit $9,990 each time and that's definite grounds for a Suspicious Activity Report, which is just as bad.