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Account Closures

All articles tagged with #account closures

finance2 years ago

The Mystery Behind Banks' Sudden Account Closures

Banks are increasingly closing customer accounts without providing clear explanations, leaving individuals, families, and small-business owners in a state of confusion and financial distress. The closures, known as "exiting" or "de-risking," are part of a broader effort by banks to crack down on fraud, terrorism, money laundering, and other crimes. Red flags, such as unusual transactions, trigger algorithmically generated alerts that are reviewed by human employees. While banks file suspicious activity reports (SARs) to comply with regulations, they rarely disclose how often they close accounts or how often they get it wrong. Customers are left with damaged credit scores, difficulty paying bills, and uncertainty about future banking relationships.

via Yahoo! Voices|
#account-closures#banks#customer-relations
politics2 years ago

"Nigel Farage Urges Banks to Reconsider Account Closures"

UK Culture Secretary Lucy Frazer has expressed concern over banks potentially closing customer accounts for political reasons, following claims made by Nigel Farage that his bank was closing his accounts as an act of "serious political persecution" by an anti-Brexit banking industry. The government is currently investigating payment providers over account closures, and last year, Paypal closed accounts belonging to Toby Young, which were later reinstated. The government has initiated a review into payment services regulations, including the practice of banks closing accounts of individuals or businesses with differing views. Farage's bank, believed to be Coutts, cited a "commercial decision" for closing his accounts, and he has been turned down by seven other banks when attempting to open new accounts.

via BBC|
#account-closures#banks#nigel-farage
finance2 years ago

The Alarming Trend of US Banks Abruptly Closing Customer Accounts.

US banks are abruptly closing innocent customers' accounts without warning due to supposed suspicious activity, leading to customers discovering something is wrong when they try to spend their money. These closures appear to be connected to efforts to catch illicit activity, but only a small percentage of Suspicious Activity Reports (SARs) submitted by banks to law enforcement result in a follow-up. Chase, which has a history of financial violations, recently cut a customer's account with no explanation, but later launched an investigation and could not confirm any wrongdoing.

via The Daily Hodl|
#account-closures#chase#finance
finance2 years ago

The Sudden Closure of Bank Accounts: What's Behind It?

Banks are closing customer accounts with little explanation due to increasing attention to suspicious-seeming transactions. Financial institutions are obligated to alert regulators and law enforcement through a Suspicious Activity Report if there’s irregular behavior that they cannot easily explain. Banks can close a customer’s account for any reason, at any time, and it’s usually because they’re trying to protect the institution (or the customer) from a potential fraud. Sudden account closures are intensely disruptive, and people subject to them seem to be saying so more often.

via The New York Times|
#account-closures#banks#customer-service
finance2 years ago

Banks Close Accounts Without Clear Reasoning.

Banks are closing customer accounts without warning due to suspicious activity, which is often unclear to the customer. Financial institutions are obligated to alert regulators and law enforcement through a Suspicious Activity Report if there’s irregular behavior that they cannot easily explain. However, most of the time, the customers are probably innocent. Sudden account closures are intensely disruptive, and people subject to them seem to be saying so more often.

via Yahoo News|
#account-closures#banks#customer-service