Watch out opening alot of bank accounts

sdot10 · #1 11-18-2010

This is kind of an update on my thread

http://www.aspkin.com/forums/paypal-...l-find-me.html

So one bank sent me a check the other is "still investigating" so I was opening new accounts and was finding it much more difficult. When Id try id get alot of the "call us to open this account" type things instead of quick openings. So I called one of the banks and spoke to a woman who was really nice. I think I got more info out of her because she grew up in my area. But shes just like ok have you opened alot of bank accounts or something and I played it cool like well i opened a checking with you all and wanted a savings also and shes just like because im seeing like alot of inquiries into your name and they are ALL from banks. I was like how many and shes just like looks like over 50 in the last few months.

I know all of us go through alot of bank accounts with limitations, getting linked and all that stuff so I felt I would share because she said alot of inquiries can affect your credit score pretty badly and also makes banks very weary of you. going back to my original post i wonder if this more than anything else may have been the cause. Anyone have any info on how this works. Will probably pay the money to get a credit score report because i already got my free one earlier this year. But watch out opening all these accounts could be bad

**SaiJin** · #2 11-18-2010

OP:

mind sharing how many accounts per bank and how many banks did you open them in?
The numbers should give us better idea of what to think.

I hope it's not 50 accounts that you closed.

sdot10 · #3 11-18-2010

I would open probably 5 bank accounts a month. Originally just HSBC and BOA. I think I had some PNC or chase about a year or so ago but for the last year its been HSBC and BOA because they were the easiest to open and close. So it would be like 3 at HSBC 2 at BOA or vice versa. When an account went down you open a new one. I guess it def ads up.

**SaiJin** · #4 11-18-2010

DaMN, that means you must have closed accounts very frequently!

Def time to reset your business model. You don't want to mess around with banks.
So do yourself a favour and ask why eB and PP kept shutting you down.

THen once you find your weaknesses, figure out a new blue print that is for the long run.

HowYaLivin · #5 11-18-2010

Touché saijin, sdot10 is clearly doing something wrong to where he needs to close so many accounts. In the banks eyes opening accounts is seen as good, closing is bad. Why not just leave the accounts open?

#6 11-18-2010

Same thing happen to me. I had opened 13 accounts with HSBC over the course of 3 months. I had closed about 5 of them throughout that time frame and left the rest opened for awhile. Now I am just waiting for the checks to be sent to me. I will never do that again.

**SaiJin** · #7 11-18-2010

what? 5 accounts and they booted you out?
Do you owe eB or PP any $? A large sum of $?

transitionfighter · #8 11-18-2010

Before I found this thread and found out about linking at what not. I went through close to 10 bank accounts in a 2 month period.

**SaiJin** · #9 11-18-2010

And you got booted out from your bank?

#10 11-19-2010

Quote:

Originally Posted by SaiJin

what? 5 accounts and they booted you out?
Do you owe eB or PP any $? A large sum of $?

No, I don't owe ebay or paypal any money. I had opened the bank accounts for newly created back up accounts to age. I would wait awhile, then close them. They had called me wanting to know what I needed 13 accounts for. Just told them it was for family and accounts strictly for bills or spending money, etc. Then they told me they were going to shut down all my accounts and send me checks to me.

**SaiJin** · #11 11-19-2010

darn.... what the heck.... Oh you know what... it's because you said it's for family... which means someone else aside from you.

#12 11-19-2010

Oh, I know he mentioned "Why can't they open the accounts themselves?" I just said we share the same computer. I just hope that most of the checks will be made out to me since I still had transfers that were recently made before they closed the accounts. =(

**SaiJin** · #13 11-19-2010

They will , since you are the account holder.
those transfers most likely will be returned to the source.

aking · #14 11-19-2010

Quote:

Originally Posted by Nephilim

No, I don't owe ebay or paypal any money. I had opened the bank accounts for newly created back up accounts to age. I would wait awhile, then close them. They had called me wanting to know what I needed 13 accounts for. Just told them it was for family and accounts strictly for bills or spending money, etc. Then they told me they were going to shut down all my accounts and send me checks to me.

Accounts can age without having a bank account attached. I have a few aging now but I dont add the bank account until I'm ready to start moving money through it.

Also, why would the same bank keep looking into your credit history? For example, I always have an account open with BOA. I may close an account every few months, but there's always at least 2-3 accounts open. Why would like "check me out" when I'm already a current customer? I could see if say I had only 1 account open, then I closed it, then a few months later I come back, but it shouldn't effect an ongoing customer.

**SaiJin** · #15 11-19-2010

Yea, I'm not sure why too...

That's why I'm surprised at Neph's situation.

If it's OP's situation where he closed 50 and kept making bank accs 3/mo and just keep cycling, that's a bad activity. Never mess with banks.

jeffweico · #16 11-19-2010

The bottom line is that most people don't have 10, 20 or 30 bank accounts. Normal would be 2 or 3. So, when a bank inquires about you (most likely through chexsystems) and sees a ton of inquiries, they think you are up to no good.

Really, whatever you are doing that is causing you to burn through bank accounts so quickly should be corrected. Because even if you have just 10 accounts, and the bank notices that money is coming in under different names, they won't like it.

Just because there are banks that don't seem to have a problem with money coming in under different names does not mean that you should go off the deep end with this. Use name variations - ie John Smith, Jonathan Smith, Johnny Smith, maybe even Smith Johns. A business account can be in any name, but it has to be registered, so most people don't bother.

But think about it from the banks' point of view. John Smith has 10 accounts. Money is coming in for John Smith, Peter Strauss, Juan Mendoza, Emily Wong, etc. How would that look to you? Remember, prior to 2007 the business mantra was MORE ACCOUNTS, MORE SALES, MORE CUSTOMERS, MORE MONEY. The new buzzword is RISK AVOIDANCE.

A banker seeing this is likely to think that you are defrauding people, or evading taxes, or whatever. They are not going to perform a major investigation like Sherlock Holmes. But they KNOW they do not want any part of it. So, they close the accounts, plain and simple.

**SaiJin** · #17 11-19-2010

I think as long as we don't close the accounts, it shouldn't be any trouble, no? Even if we use totally diff names.

jeffweico · #18 11-19-2010

I would still try to stick with variations.

Jeff could also be Jeffrey, Jeffery, Geoffrey, etc.

Richard could also be Dick, Rich, Riick, Richie, etc.

To be clear, I'm saying use your real, LEGAL NAME on the bank account. But use the variations with eBay/PP/Amazon.

**SaiJin** · #19 11-19-2010

Right. Well, what's done is done for now.

So for the future, we'll all put this into thought.

oompaloompa · #20 11-20-2010

what about the fact that most of the deposits on them are from paypal? How do you think that affects your status with the bank, I often wondered if they look in to it because say you have alot of accounts with them, then look at the name submitted (different to yours) they would report it somewhere. I think you should not have more than 3 accounts per bank.