Re:Why Banks Are Suddenly Closing Down Customer Accounts
by fencepost on Sunday November 05, 2023 @06:34PM
(#38156914)
I'm very far from dealing with 500k personal banking transactions, but my immediate thought is that if you're doing so you're probably making mistakes. If it's revenue from sale of a company or similar, move it through escrow with your attorney. If it's a legal settlement, do the same. If you don't have an attorney but are dealing with hundreds of thousands of dollars, get an attorney. If it's income from trading or investing it should likely be a transaction from a recognized brokerage which shouldn't raise red flags - and if it's a private investment, see above about an attorney.
And of course if it's business transactions, do it with a business account.
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by raincom on Sunday November 05, 2023 @07:12PM
(#38157212)
I just gave an example based on what I read on reddit, as I never deposited $500K in my life. I have no problems with banks' closing accounts, as I have accounts with a couple of local credit unions, who are nice to me.
What caused the closure? A legitimate transaction that they find suspicious. Conjunction of two issues--not sending the funds back and closing the account without releasing funds to the customer--is real 'thievery' in my opinion. Since big banks are NOT interested in resolving disputes about funds by lying to customers, better file a complaint with CFPB right away with many details and documents.
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by pc86 on Monday November 06, 2023 @09:27AM
(#38163004)
Perhaps we should stop spreading second-hand anecdotes from Reddit as authoritative examples of what can/has/should happen.
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by mindslight on Sunday November 05, 2023 @10:37PM
(#38158556)
[delayed]
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by zlg_codes on Monday November 06, 2023 @12:11AM
(#38159102)
Wait hold up, lawyers can help you avoid the law as well?
I suspect the bar would not allow that.
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by mindslight on Monday November 06, 2023 @10:37AM
(#38163976)
You obviously can't cold call an attorney and ask for help laundering money. But if you find a money laundering operation through the proper channels, then it will likely involve a law firm somewhere that's facilitating making it properly legible to the system - setting up less-than-truthful companies, generating copious fraudulent documentation, etc. If anything attorneys' trust accounts should be receiving more scrutiny rather than less.
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by raincom on Monday November 06, 2023 @01:51AM
(#38159593)
Lawyers are not of much help when it comes to reopening already-closed accounts. Most of the time, banks will send a cashier check for whatever money left, if they close accounts abruptly. Sometimes, they give a month to move funds elsewhere. When a bank closes an account for that last check which they find suspicious--subsequently cleared by the payee bank, that's when banks give a run around. File a complaint with CFPB without any lawyer, unless of course that amount is substantial.
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by mindslight on Monday November 06, 2023 @10:27AM
(#38163851)
I agree - you don't need an attorney to file a complaint with the CFPB, and that is what you should do ASAP when a bank starts pulling this crap. But the comment I was responding to was suggesting you should have an attorney to handle any large possibly-judged-as-suspicious transaction.
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by fencepost on Monday November 06, 2023 @12:07PM
(#38165286)
I wouldn't expect them to help with reopening, but if a bank is investigating an unexpected large deposit and determines that "Oh, it's coming from a law firm's escrow account" it gives at least one obvious possible explanation - and may also indicate to investigators that the account holder is someone with legal representation so don't be sloppy.
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by fastaguy88 on Monday November 06, 2023 @10:07AM
(#38163588)
If you are buying a house with cash, you are likely to be transferring $500K+. I do not think an attorney is necessary for the transfer.
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by BobaFloutist on Tuesday November 07, 2023 @12:52PM
(#38180242)
When you buy a house an attorney is likely involved, but, in any case, you're going to be transferring the 500k through escrow, not making a direct deposit or wire transfer.
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by fastaguy88 on Wednesday November 08, 2023 @03:54PM
(#38196825)
I made a wire transfer to the escrow agent.
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by programmertote on Sunday November 05, 2023 @07:16PM
(#38157226)
Glad to hear they gave your money back in full. I'm now really concerned. It sucks that there seems to be no accountability in the system. I get that they want to catch the folks who abuse the banking system, but if they do, they (the government and the banks) should at least set up a proper channel to give reasons and allow folks like us (regular Joe's) to file complaints. The current system seems really ripe for abuse.
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by svnt on Sunday November 05, 2023 @08:42PM
(#38157817)
If you are moving this much money regularly using these means you will be using a private bank which is a completely different experience. Maybe some people get caught in the transition to wealth before private banking but having moved significant amounts of money a few times, the banks generally do not want to hang onto it against your will.
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by pjc50 on Monday November 06, 2023 @05:24AM
(#38160785)
I don't like saying this, but the Farage fiasco involved a "high touch" personal private bank, Coutts (now a subsidiary of NatWest)
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by svnt on Wednesday November 08, 2023 @11:04AM
(#38192339)
He apparently made the fatal error of being both a terrible person and not wealthy enough at the same time.
Re:Why Banks Are Suddenly Closing Down Customer Accounts
by teeray on Sunday November 05, 2023 @09:43PM
(#38158179)
Kind of amazing that doing “aaand it’s gone” with $500k that is provably legitimate is “an issue requiring a complaint to a specialized bureau” and not “a grand larceny charge from the DA.”
The case one should worry about these banks is this: you deposit a $500K check, or you got a wire for $500K; check was cleared on the sender's side. Now Chase/Big Bank holds your funds, saying that this check is fraudulent, and that bank closes your account after finding you risky (risky because of this $500k and by looking back at your account history). Now $500K is in Chase's hands, your account is closed by Chase, and Chase doesn't want to give $500K, nor does Chase want to return $500K to the original bank/sender. This is where you should file a complaint with CFPB right away. Without CFPB complaints, the fraud department at Chase, its Bank employees just give you run around for months. File CFPB complaint right away, if any bank holds your funds after 10 business days; don't listen to these employees at all.
CFPB can't force banks to reopen your accounts. Just to get your funds, file a complaint with CFPB right away, and don't trust any bank employee on getting your funds.