Author Topic: Best Out of State or Internet Banks for a Judgement Debtor in New York?  (Read 4791 times)

0 Members and 1 Guest are viewing this topic.

Bobby12

  • Valued Member
  • Posts: 251
I don't see why you wouldn't just cut out the middle man charging you 2.5% and just go straight to the bank the check is drawn on to straight cash it?

The middle man is charging you $300 to call the bank the check is drawn on to confirm availability of funds, then will hand you the cash minus is $300.  Where you could just go to said bank, they will immediately confirm funds on the account held with them and give you the full $12k cash.

+1
There's no reason at all to go to a checking place and pay loan shark rates. Every year that I get my bonus check from work, I go to the bank it's drawn on and cash it. I think the fee is like $10 because I don't have an account with them. It's sure a lot better than $300. I do this because I don't want to wait for the 5 -7 business day hold at my own bank.

coltfan1972

  • Valued Member
  • Posts: 6532
  • My Shoes Cost More Than Your House
Is there a chance of your account getting in some database your creditors might (legally or not gain access to)?

I guess, even though I've never heard of such database nor have ever read about it being an issue.  I pretty much go with the odds on stuff like this, and until I hear of any one person in the country having the "what if" issue you raise, I'm don't worry about the "what ifs". 

A foreign-based internet bank seems even safer, but then there are those pesky FATCA requrement coupled with the lack of the FDIC protections.

A foreign-based internet bank with no FDIC protections -vs- AMEX/Wal-Mart, with the possibility of some "database" out there that maybe if such database is out there, some creditors might be able to access said database that might be out there?  I'm going with the AMEX/Wal-Mart option and it's not just because I live in Wal-Mart's home state.
LexisNexis® Legal Newsroom- 05-17-2013 | 10:11 AM --

JONESBORO, Ark. - A federal judge in Arkansas on May 15 ruled that dismissal of a consumer's lawsuit against a debt collector is not proper because although the consumer posted messages on a website "in an odious manner," valid First Amendment concerns exist (Brandon Scroggin v. Credit Bureau of Jonesboro Inc., No. 12-0128, E.D. Ark.; 2013 U.S. Dist. Lexis 69070).

NYCBroke

  • Valued Member
  • Posts: 45
I don't see why you wouldn't just cut out the middle man charging you 2.5% and just go straight to the bank the check is drawn on to straight cash it?

The middle man is charging you $300 to call the bank the check is drawn on to confirm availability of funds, then will hand you the cash minus is $300.  Where you could just go to said bank, they will immediately confirm funds on the account held with them and give you the full $12k cash.

In theory what you are saying makes perfect sense, but I still seriously doubt that it will be possible to cash a large check at the bank it was drawn upon without an account there. Here is an example: Last year when I was trying to cash my paycheck (ADP Payroll Check) at Chase (the bank it is drawn on) they refused to do it for me. I argued its payroll, from ADP and written from Chase. The manager said our policy is that we only cash checks for customers who have accounts here. So if they gave me such a hard time cashing a payroll check from ADP, I can only imagine an attorneys check will be worse.

Since then I just deposit my paycheck in my wife account. But I'm not comfortable doing this. I don't want anything to come up down the road where a creditor could attempt to go after my wife's account by claiming its really my money

Flyingifr

  • -DEAN EMERITUS-
  • Valued Member
  • Posts: 8481
  • Welcome to my Temper Tantrum
One thing you may encounter with these banks is that they routinely deny people who have low credit scores or a lot of collections on their report, because they know what you're doing and don't want to participate in helping you hide money from creditors.

FlyingIFR listed a couple that may be helpful. I don't recall the names. If the check is in your name, why not just take it to the bank that issued it and cash it or have it converted to a series of teller checks made out to you that you can cash one at a time.

Bank of Internet (www.bankofinternet.com) based in San Diego opened an account for a client of mine in Tucson AZ a couple of weeks before they filed BK - no issues, no problems - as long as you are not in Chexsystems.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)

Moonshine Maker

  • Valued Member
  • Posts: 47
The biggest problem with on line banks is hold time for checks deposited and with even holds for ach deposits at others.
The fees vary greatly.  I found some that that will allow unlimited or almost unlimited free use of any other bank's atm. 
Just be careful when you sign up and read every thing in both the bank's website and the online reviews. My banks has 2 similar
accounts  the difference is whether they mail you a statement.  On both you can only get copies of the cleared checks on line.
The online  account is free but the mail account  cost over $15/month. 

NYCBroke

  • Valued Member
  • Posts: 45
Bank of Internet (www.bankofinternet.com) based in San Diego opened an account for a client of mine in Tucson AZ a couple of weeks before they filed BK - no issues, no problems - as long as you are not in Chexsystems.

Thank you sir!

Bruno the JDB Killer

  • BANNED
  • Posts: 14304
Do they pull your credit report? If so, the creditors will see the pull. Might as well send them a copy of the bank statement.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

CleaningUp

  • Valued Member
  • Posts: 10401

I don't see why you wouldn't just cut out the middle man charging you 2.5% and just go straight to the bank the check is drawn on to straight cash it?

The middle man is charging you $300 to call the bank the check is drawn on to confirm availability of funds, then will hand you the cash minus is $300.  Where you could just go to said bank, they will immediately confirm funds on the account held with them and give you the full $12k cash.


I have NEVER had any bank refuse promptly to convert substantial 3rd-party checks to cashier's checks, and I have a) presented any number of four- and five-figure checks or b) charge me even close to 2-1/2% for the transaction.

You'll need to go to an officer of the bank to get it done.  They'll call to verify the funds and can/will put a hold on the funds in the bank on which the check is drawn.  They'll likely also contact the maker of the check to see if they actually wrote it,  (This is where a delay, if any, was encountered, and that only for about an hour or two while the contact was made.)

Of course, you are going to have to carry with you a fair amount of personal documentation, but, if you are a law-abiding, semi-conscious individual, that should not be much of a problem.

If the check is that large, surely you can spend a bit of time in making the conversion...


NYCBroke

  • Valued Member
  • Posts: 45
I have NEVER had any bank refuse promptly to convert substantial 3rd-party checks to cashier's checks, and I have a) presented any number of four- and five-figure checks or b) charge me even close to 2-1/2% for the transaction.

You'll need to go to an officer of the bank to get it done.  They'll call to verify the funds and can/will put a hold on the funds in the bank on which the check is drawn.  They'll likely also contact the maker of the check to see if they actually wrote it,  (This is where a delay, if any, was encountered, and that only for about an hour or two while the contact was made.)

Of course, you are going to have to carry with you a fair amount of personal documentation, but, if you are a law-abiding, semi-conscious individual, that should not be much of a problem.

If the check is that large, surely you can spend a bit of time in making the conversion...

Interesting. When doing such, are you required to designate a payee to the cashiers checks? How are you cashing the cashier checks?

CleaningUp

  • Valued Member
  • Posts: 10401
Yes.  I designate myself as the payee.

...It makes it easier to cash in the future.

But then again, I am not trying to hide from my student loan obligations.

NYCBroke

  • Valued Member
  • Posts: 45
Yes.  I designate myself as the payee.

...It makes it easier to cash in the future.

But then again, I am not trying to hide from my student loan obligations.

Thanks for the sarcastic answer regarding student loans. If you took the time to actually read through my post in the BK forum, you would have seen that my SL's are in forbearance and not in default or collections.

CleaningUp

  • Valued Member
  • Posts: 10401

Thanks for the sarcastic answer regarding student loans. If you took the time to actually read through my post in the BK forum, you would have seen that my SL's are in forbearance and not in default or collections.


The point is not where you are...the point is where you want to head.

The remarks stand as written.  Dreaming for the silver bullet is not the way to make things work correctly over the long term.  BK reform is not going to happen in the short- or even medium terms.  THAT's the reality.

And a hint for you...whining tends to be a turn-off when you want people to read your posts.


Bruno the JDB Killer

  • BANNED
  • Posts: 14304
Interesting. When doing such, are you required to designate a payee to the cashiers checks? How are you cashing the cashier checks?

You have them make the cashier's checks payable to you. 12K? Take six checks for 2K each, cash one a week at the bank that issued them. You'll have no problems.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

CleaningUp

  • Valued Member
  • Posts: 10401
+1

That also keeps one from running afoul of the Feds who have a serious interest in large, generally anonymous, cash-like transactions.


The Litigator

  • Valued Member
  • Posts: 1245
  • So, sue me.
Coltfan's idea of Bluebird is great. $0 service fee. Let's hope you haven't had any run ins with American Express like some members on this board. They are notorious for blacklisting people from all their products.

If you aren't in Chex or EWS there are plenty of out-of-state banks that will take your money. Look around.

If you are in Chex or EWS, look to the a prepaid debit card.

 

credit