Chime has been suddenly closing accounts, not returning customers’ money

Post by ipython » Wed, Jul 07, 2021, 7:19 AM UTC

sbierwagen wrote: post #101

ipython wrote: post #71

Earlier quoted context omitted.

Back in the banking crisis days, I applied for a mortgage modification. I’m on top of paperwork and fax like a boss, so I made sure all of our documentation was in order and submitted ahead of schedule. Regardless, the bank tried to use every trick in the book to delay. I ended up war dialing all the extensions around my contact to find someone who worked there with access to my files to push it along. Ended up succe…

>I don’t agree with the need for physical violence. Historically, we have had decent regulatory protections for customers. “When you vote, you are exercising political authority, you're using force. And force, my friends, is violence. The supreme authority from which all other authorities are derived.” Regulatory protections certainly didn't arise from the void. If you trace them back the New Deal agencies, then you…

Post by nomoreplease » Wed, Jul 07, 2021, 12:36 PM UTC

hnarn wrote: post #132

In the EU at least there's directive 94/19/EC[1] which I believe stipulates that deposit-guarantee schemes have to be in place in all EU countries that protect customers from losing their money in the event that a bank goes bankrupt or withholds their money. Is there something similar in the US? [1]: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CEL...

Post by gruez » Wed, Jul 07, 2021, 1:37 PM UTC

mindslight wrote: post #129

gruez wrote: post #104

Earlier quoted context omitted.

>Whereas if you write a check on your account, pass it to someone else, who passes it to their bank, who presents it to your bank, your bank wantonly dishonoring the check would result in a much larger fallout. I doubt that the law would be on your side if the bank called and told you that your account was closed, and you continued writing checks. At best that would prevent situations mentioned in the article where y…

Yes, obviously if you have received notice your account is closed, and you continue writing checks, you're on the hook for writing bad checks. The point is that any in flight checks would cause a problem for the banks, which discourages traditional banks from adopting "innovative" ideas like freezing accounts en masse based on machine learning snake oil.

Post by mindslight » Wed, Jul 07, 2021, 2:19 PM UTC

gruez wrote: post #135

mindslight wrote: post #129

Earlier quoted context omitted.

Yes, obviously if you have received notice your account is closed, and you continue writing checks, you're on the hook for writing bad checks. The point is that any in flight checks would cause a problem for the banks, which discourages traditional banks from adopting "innovative" ideas like freezing accounts en masse based on machine learning snake oil.

>The point is that any in flight checks would cause a problem for the banks, which discourages traditional banks from adopting "innovative" ideas like freezing accounts en masse based on machine learning snake oil. Is this what's happening here? The way I read the story it sounded like they froze the account and then the customer only noticed because her card was declined, rather than her account being frozen because…

Post by quesera » Wed, Jul 07, 2021, 2:55 PM UTC

Nextgrid wrote: post #110

quesera wrote: post #106

Earlier quoted context omitted.

It's gone because it worked so poorly for society. Most obvious consequence: the physically-strong can get more justice than the weak. Which leads inevitably to: the physically-strong make the rules. And social regulation has failed.

I wouldn't say that it's gone because it worked so poorly. It's gone for other reasons such as technological advances shifting so much business online where this behavior is no longer possible. I don't think it worked poorly. While we didn't have a constant epidemic of customers fighting with customer service people, the possibility of it served as an effective deterrent for overly scummy behavior (from both sides ac…