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Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011

Anyone see any risk here?

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!

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Valued Contributor
DaveSignal
Posts: 2,058
Registered: ‎07-29-2011

Re: Anyone see any risk here?

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.

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Senior Contributor
drkaje
Posts: 3,482
Registered: ‎07-25-2008

Re: Anyone see any risk here?

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!


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pizzadude
Posts: 8,765
Registered: ‎01-28-2010

Re: Anyone see any risk here?


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 ?

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Super Contributor
marty56
Posts: 5,679
Registered: ‎10-06-2007

Re: Anyone see any risk here?


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.

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FrugalRican
Posts: 2,876
Registered: ‎02-02-2012

Re: Anyone see any risk here?

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...

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Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011

Re: Anyone see any risk here?

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.

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Senior Contributor
drkaje
Posts: 3,482
Registered: ‎07-25-2008

Re: Anyone see any risk here?

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. :smileyhappy:


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Valued Contributor
Repo-ed
Posts: 2,953
Registered: ‎02-09-2012

Re: Anyone see any risk here?

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!

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pizzadude
Posts: 8,765
Registered: ‎01-28-2010

Re: Anyone see any risk here?

[ Edited ]
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.

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