If You Written A Hardship Letter To 2 Companys And They Continue To Take Money

AllysonM, I am sorry to hear about your parent's situation.  It should be noted that it is not their fault the situation is like this and that they can take steps to make the banks more aware of their side of the problem.  I am NO EXPERT, however I have enough experience to answer your questions.  1. If your parents closed their accounts, the banks will start sending paper letters to their home requesting payment.  If they do not notify the charging bank that the account is being closed there is a high risk your parents will be charged late fees resulting in the turnaround time for the paper letters to reach your parents.  2. If your parents open new bank accounts, the Banks that were charging to your parents old accounts will not have access to the new bank accounts; however as stated before, your parents will probably be charged late fees and sent paper statements.  If they choose not to pay these statements they will be in default and then eventually the properties will be reposessed.  3. I do not believe the banks can refuse the payments but some banks will agree to block any incoming requests if you talk to them.  The best situation is to simply open a new account and not tell the bank why until they absolutely have to know. 4.  Your parents best bet is to have all their loans refinanced into one bigger package with the lowest rate they can find.  They might have to spend a full year looking for the right deal, but if they find the correct one they can save anywhere from 200 to five hundred dollars a month.