A frightening story about how your bank can drop you at any time

[VRBeauty]

There’s a frightening story in today’s NYT about how - and why - banks can shutting down customer accounts at any time and without warning. It’s a frightening read.

Fortunately I haven’t experienced this. But my husband and I have both made many large transactions in the past few years, including loans to siblings while our parent’s estates were being settled and moving money from personal accounts to our joint account for several large purchases. We purchased our trailer from Canada using a money exchange firm. I know that seems like small potatoes but this article makes me wonder whether any of those actions might be flagged…

This link should get you past the NYT paywall, and it should be good for a week.

Why Banks Are Suddenly Closing Down Customer Accounts

Surprised individuals and small-business owners can’t pay rent or make payroll, and no one ever explains what they did wrong.

www.nytimes.com

 

[vintageinjune]

Yikes. That's unsettling.

 

[Austina]

There’s been a high profile case in the UK about a former politician who had his bank account closed. Reports in the papers contained various rumours about the reason, which were unproven. Several other banks then declined to open an account with him.

NatWest: Former boss set for £2.4m pay package after Farage scandal

Chief executive Dame Alison Rose quit the bank over the closure of Nigel Farage's account.

www.bbc.com

 

[Lookinagain]

I understand the issue with the salary coming from a marijuana company since banks weren't facilitating cannabis-related transactions due to marijuana's federal illegality. I don't really understand the issue with the other transactions since it seems there were explanations for the transactions, but everything was done by the banks using a red flag, check list mentality and not any kind of investigation. I don't know what their responsibilities are however. It is kind of scary that you can be going about your normal business and all of a sudden, lose your bank, credit cards, etc. I'm guessing the mortgages that these people held with their banks weren't forgiven though and payments were still accepted!!

 

[RMOO]

It is hard to form an opinion since the first article doesn't really explain what reasons/transactions are used to bounce customers. The UK article seems to indicate that it was an individual's personal/political decision that was used as a basis to close the customers account not anything actually illegal.

 

[RunningwithScissors]

I read that article yesterday morning (we get the old fashioned newspaper delivered at our house). It's really frightening to me but I'm not at all surprised. I HATE that computers/algorithms/AI are deciding our own personal fates more and more, be that scanning our resumes for job openings, or flagging/closing our bank accounts, etc.

Our individual lives, our backgrounds, and our stories are so complex but the software/algorithms/AI is incapable of judging us with any kind of nuance, so most of us will almost always fall outside the basic 4 or 5 main/standard categories its wants to place us in. And so who suffers...we do. We are closed out, shut down, and unable to have our concerns addressed.

I think most of us have had the experience where we call customer service and if our problem doesn't fall into one of 4 basic options then we are screwed because we aren't allowed anymore to speak to a human ("press 1 if you want X, press 2 if you want Y.." .etc).

I HATE this new reality and I think it's going to get even worse/more prevalent.

 

[Lookinagain]

I think most of us have had the experience where we call customer service and if our problem doesn't fall into one of 4 basic options then we are screwed because we aren't allowed anymore to speak to a human ("press 1 if you want X, press 2 if you want Y.." .etc).

I HATE this new reality and I think it's going to get even worse/more prevalent.

I so agree. I just went through this with customer service tonight. If your issue isn't on their menu so that the automated answer doesn't help, getting to a human can be close to impossible, and generally very time consuming. I HATE this new reality too. And it frightens me.

 

[Austina]

It is hard to form an opinion since the first article doesn't really explain what reasons/transactions are used to bounce customers. The UK article seems to indicate that it was an individual's personal/political decision that was used as a basis to close the customers account not anything actually illegal.

Actually what the head of the bank did was illegal, she discussed private account details of person involved with a BBC reporter. This was a serious breach of the Data Protection Act.

 

[RMOO]

Actually what the head of the bank did was illegal, she discussed private account details of person involved with a BBC reporter. This was a serious breach of the Data Protection Act.

So that is the reason she was fired/resigned, and not that she allowed her personal political views to influence her decision regarding the customer’s account? Was the customer ever found to have engaged in anything illegal (banking wise?) That is what I was questioning above: whether the bank exec used a personal view to target the customer rather than suspected illegal behavior by the customer.

 

[Austina]

Honestly, I think it was a combination of both. Nigel Farage was a staunch Brexiteer, which she obviously didn’t like, and there’ve been numerous stories about him (all unproven) printed in the press. Either way, she shouldn’t have discussed his financial details with a 3rd party, especially someone from the press, or let her personal feelings about him, influence such an important decision.

 

[RMOO]

Honestly, I think it was a combination of both. Nigel Farage was a staunch Brexiteer, which she obviously didn’t like, and there’ve been numerous stories about him (all unproven) printed in the press. Either way, she shouldn’t have discussed his financial details with a 3rd party, especially someone from the press, or let her personal feelings about him, influence such an important decision.

Agreed

 

[jordyonbass]

Cash is king as the old saying goes!