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 Posted: Sat Dec 01, 2007 12:30 pm
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I have opened successfully another bank
account with another bank.I have not closed my current account,that is being
currently raided by pdls.I will do that
asap with the advice all of you have
so graciously given to me.My employer
told me it could take up to two pay cycles to stop direct deposit.what happens if I close my account how do
I get my pay and keep the pdls out.
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stevekathy4867
Joined: 24 Sep 2007
Posts: 35
Debtcc Points: 1525
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Posted: Sat Dec 01, 2007 12:31 pm
Latest Blog Post : Yardwork...Season 2 |
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Normally the bank will just reject your direct deposit and then your company will have to issue you a check.
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Jessi
Moderator
Joined: 01 Dec 2005
Posts: 3466
Debtcc Points: 20200
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Posted: Sat Dec 01, 2007 12:32 pm
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Here is some info to read before closing your account.
Can you arrange with you employer for a paper check? That way you will get paid on time.
Some banks have a policy regarding ach transactions that allows them to force open closed accounts if any ach transactions go through within a certain time frame after the account is closed. This can leave you owing a legal bank $1,000's and reported to chexsystems, instead of owing barely legal (or not at all legal) payday loan companies. Not a good thing. Ask your bank what their policy is on ach transactions on closed accounts before you close the account. It's best to go in person and talk to a branch manager.
If your bank does have this policy, tell them your situation. Don't be embarrassed. Take letters with you showing that you have revoked authorization for each of your payday loan companies to debit your account. Tell the bank to put your account on deposit only, an ach block, or a hard hold before they close the account. Your bank can do one of those, don't take no for an answer. This will prevent any payday loan ach's from reopening the bank account.
It'a always best to close your bank account. Leaving it open gives ways for the payday loan companies to continue to take money out. These companies have many different dba's, so blocking them won't work. They will also produce paper checks and run them through your account. Closing the account is the best way to prevent these companies from taking money out of your account.
Some state laws do allow for prosecution if you close your bank account, but that is usually in cases of fraud. But it's always best to check with your state's attorney general or department of financial institution before you close your account. You want to make sure you are not causing more heacaches!
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volleyballmom
Debt Samaritan
Joined: 27 Aug 2007
Posts: 4178
Debtcc Points: 24889
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Posted: Sat Dec 01, 2007 12:35 pm
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Also, talk to the bank about setting the account on deposit only until you can finally close the account once the direct deposit is re-routed. Sure it will be inconvinient having to go into the branch in person to take out money, but it can help keep the PDL's out.
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volleyballmom
Debt Samaritan
Joined: 27 Aug 2007
Posts: 4178
Debtcc Points: 24889
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