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Trouble opening bank account after discharge

I have been recently discharged after bankruptcy. I went today to open a chequing account at a credit union and was refused based on the credit rating even though I make a really good salary. She said if they bent the rules, I could possibly get an account but they would not give me an ABM card for at least 6 months but they still wouldn’t do it! Can they do this? She suggested I find a bank that doesn’t do credit checks.

Do you have any suggestions – filing a complaint against a bank in which I would like to deal with in the future I don’t think is wise.

One Response to “Trouble opening bank account after discharge”

A licensed trustee said...

Yes, you are allowed to operate a bank account while you are bankrupt. In fact, a bank is not permitted to refuse to open a bank account for you just because you are bankrupt.

According to the Access to Banking Regulations contained in the Bank Act, banks can generally only refuse service if they believe you will be using the account for fraudulent purposes.

Section 3(2) of the Bank Act states that:

(2) For greater certainty and for the purpose of paragraph (1)(a), the fact that the individual is or has been a bankrupt does not, by itself without any evidence of fraud or any other illegal activity in relation to the bankruptcy, constitute reasonable grounds for a member bank to believe that an account for the individual will be used for illegal or fraudulent purposes.
In other words, bankruptcy is not a reason for the bank to refuse to open a bank account.

Since in your question you are dealing with a credit union, I would suggest you show the credit union the rules, and if they still won’t open the account, you take your business to a bank.