Can Changing Banks Stop Nursing Home From Taking My Money?

Changing banks will stop the nursing home from accessing your funds from that specific account — but it doesn’t necessarily stop your legal obligation to pay them.

Think of it like a garden hose: if you switch banks, you are essentially cutting the hose. The water stops flowing, but the person at the other end (the nursing home) is still expecting to get paid.

Here is a breakdown of how this works and what you should consider before making the move.

1. How Direct Deposits and Withdrawals Work

When you gave the nursing home permission to take money, you likely signed an ACH (Automated Clearing House) Authorization. This agreement is tied to a specific routing number and account number.

• Switching banks: Once you close the old account, any attempt the nursing home makes to withdraw funds will be rejected as “account closed.”
• Redirecting income: If your Social Security or pension is currently being direct-deposited into that old account, you must update those agencies immediately so your money lands in your new bank.

2. Closing the Account Versus Revoking Permission

While closing the account stops the “drain,” it is legally cleaner to revoke authorization in writing.

• The paper trail: Send a certified letter to the nursing home’s billing department stating that you are revoking their permission to debit your account effective immediately.
• The bank’s role: You can also notify your old bank that the authorization is revoked, though closing the account makes this moot.

3. The “Debt” Versus the “Access”

It is important to distinguish between how you pay and if you owe. Even if you block their access to your bank account, the nursing home still has a record of your 33-day stay.

Potential Consequences of Blocking Nursing Home Access

If you change banks, the nursing home cannot follow you to the new bank automatically. They do not have access to your Social Security number to find your new account. However, they will likely reach out to you or your responsible party (the person who signed your admission papers) very quickly once a payment fails.

Note: If you are moving banks because you believe the nursing home is overcharging you, it is best to consult with an elder law attorney or a long-term care ombudsman to protect your rights.