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Opening bank account with Creditor after burning them?

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Opening bank account with Creditor after burning them?

It's been about 9 months post BK. Citibank is having this $400 promotion where if you deposit $15k and hold for 60 days, the money is yours. My problem is that I burned Citibank in my bankruptcy, so I am a bit worried that they might possibly freeze my account or seize the assets. I burned them for about $1k. Yay or nay?

 

Any experience in this?

Message 1 of 10
9 REPLIES 9
Frequent Contributor

Re: Opening bank account with Creditor after burning them?

If your BK was properly discharged they cannot seize the assets- that is against the law. More likely they might refuse to open an account for you, but they will not freeze & seize...



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Message 2 of 10
Frequent Contributor

Re: Opening bank account with Creditor after burning them?


@ScooterMcDoodlebutt wrote:

If your BK was properly discharged they cannot seize the assets- that is against the law. More likely they might refuse to open an account for you, but they will not freeze & seize...


I second this motion!!!!


BK 7 Discharged: 05/30/2018
Fico Scores after Discharge: Experian-552 TransUnion- 490 Equifax- 571
Message 3 of 10
Established Member

Re: Opening bank account with Creditor after burning them?

If you are using their service such as a checking most banks include in their deposit agreement the right to offset. So they could possibly offset the debt still as you sign and agree when opening a account.

Message 4 of 10
Contributor

Re: Opening bank account with Creditor after burning them?

lol agreed, a bank cant withhold your money due to a past debt just because it was discharged bk. That would negate the purpose's of the bankruptcy




Started from the bottom now I'm here. Smiley Happy
Message 5 of 10
Senior Contributor

Re: Opening bank account with Creditor after burning them?

Agree they can't try to seize any assets to cover debts discharged in BK. And you'll probably be OK, just be sure to decline any overdraft protection as that's a credit product giving them permission to pull your credit report. I burned Chase in my 2010 BK and have opened accounts twice with them for new account bonuses.


Fico 08: 720/721/719 TU/EX/EQ
Message 6 of 10
Valued Contributor

Re: Opening bank account with Creditor after burning them?


@DaveInAZ wrote:

 just be sure to decline any overdraft protection as that's a credit product giving them permission to pull your credit report.


Learn something new everyday....(would that be a hp or sp?)  Glad to know, get these offers in the mail from my banks constantly.  

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Message 7 of 10
Senior Contributor

Re: Opening bank account with Creditor after burning them?


@LauraC wrote:

@DaveInAZ wrote:

 just be sure to decline any overdraft protection as that's a credit product giving them permission to pull your credit report.


Learn something new everyday....(would that be a hp or sp?)  Glad to know, get these offers in the mail from my banks constantly.  


I'm not sure if it would be a HP or SP, I always decline, but my guess is a HP. And some banks offer overdraft protection that's not credit by just automatically transferring money from a savings account to cover a checking OD, but I decline any OD service just to be safe. I've never overdrawn an account and never use debit which is the easiest way to OD by forgetting to record a transaction, or using debit for a hotel or car rental where they put a large hold on your card.


Fico 08: 720/721/719 TU/EX/EQ
Message 8 of 10
Regular Contributor

Re: Opening bank account with Creditor after burning them?

They can deny you an account, but they can’t freeze the account and sieze the money post discharge. As other posters have said, that would defeat the purpose of the bankruptcy, that would be a form of collecting a debt.
And besides, $1,000 to a huge bank like Citi is pocket change. I’m sure they’ll give you an account and not screw with you.

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Chapter 7 Discharge: March 13, 2019

Message 9 of 10
Frequent Contributor

Re: Opening bank account with Creditor after burning them?

I've been in banking for 15 years. I can tell you that you are almost guaranteed to have your credit checked if you open a new checking account. As a general rule, you don't have the option of opting-out of the credit check (at Navy Federal it is part of the membership application). It should be a soft inquiry, but some banks do hard pulls for new checking accounts. 

 

Banks use a variety of method to verify identity. Matching what you say your address, DOB, etc. is to what your credit report says your address or DOB is, is one of the ways of verifying this information. Of course, some banks will then use the credit bureau reports to market you additional products/services.

Message 10 of 10
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