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Tell HN: Chase shadow banned and closed my bank accounts

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Re: Tell HN: Chase shadow banned and closed my bank accounts

#61

Post by jolmg »

corobo wrote: post #60
jolmg wrote: post #59

Earlier quoted context omitted.

> @op the obvious question - what were you doing with the account? Geez... Let's let the guy have some privacy. Whatever happened to presuming innocence? If OP is in the wrong, no advice we give is going to get them out of it, but if they're in the right, we might be able to help them. Trying to find fault in OP seems pointless.

Mate he's welcome to not respond. No privacy has been violated unless OP decides to respond. Presuming innocence is for the court and legal systems. I am neither. I am not forcing him to answer and I will of course respect the decision if he doesn't want to.

I'm saying it's an inappropriate question. Their privacy wouldn't be violated even if they did respond, but it's just an uncourteous thing to ask.

Re: Tell HN: Chase shadow banned and closed my bank accounts

#62

Post by corobo »

jolmg wrote: post #61
corobo wrote: post #60

Earlier quoted context omitted.

Mate he's welcome to not respond. No privacy has been violated unless OP decides to respond. Presuming innocence is for the court and legal systems. I am neither. I am not forcing him to answer and I will of course respect the decision if he doesn't want to.

I'm saying it's an inappropriate question. Their privacy wouldn't be violated even if they did respond, but it's just an uncourteous thing to ask.

I disagree. Let's leave it there I guess.

Re: Tell HN: Chase shadow banned and closed my bank accounts

#63

Post by giantg2 »

jolmg wrote: post #3

> Anyone have any ideas of what I should do next? Contact the Consumer Financial Protection Bureau? https://en.wikipedia.org/wiki/Consumer_Financial_Protection_... Their homepage has a link on the top-right to submit a complaint. It's possible your state government also has an institution for consumer protection in the finance sector. For example, there's the California Department of Financial Protection and Innovati…

If your state doesn't have a specific consumer/financial agency, then these sort of things generally fall to the state attorney General office. You could file a complaint with them.

I wouldn't be surprised if they can't do anything in this case though. It sounds like you got flagged related to some law enforcement activities and there's likely some legal action that will come your way. Their financial powers are basically unbridled and even places like the CFPB have basically no recourse.

Re: Tell HN: Chase shadow banned and closed my bank accounts

#64

Post by nindalf »

paganel wrote: post #49
nindalf wrote: post #37

Earlier quoted context omitted.

This bizarre claim that FDIC insurance is funded by taxpayers is becoming more prevalent. So a bank offers financial services to a citizen and in exchange makes money. The bank uses these profits to pay insurance on the deposits. And by some mental gymnastics, this makes the bank taxpayer funded? If we taxpayers buy phones from Apple, is Apple now taxpayer funded? Is an antitrust fine on Apple meaningless because it’…

> This bizarre claim that FDIC insurance is funded by taxpayers is becoming more prevalent. Because it is correct. In today's world you're pretty much forced to have a bank account open if you want to have a "normal" life, i.e. a life where you own a house (most probably via a mortgage), where you pay your bills (most probably online) and where you receive your salary (most probably via a bank account). As such, the…

In today's world you're pretty much forced to own a smartphone if you want to have a “normal” life.

And half of all US taxpayers pay Apple for this privilege. That still doesn’t mean Apple is taxpayer funded.

Hear me out, this may sound crazy, but maybe we should call something taxpayer funded if … it’s actually funded by taxes. Not if it is simply used by a person who may or may not pay taxes.

Re: Tell HN: Chase shadow banned and closed my bank accounts

#65

Post by StopHammoTime »

BoiledCabbage wrote: post #55
phpisthebest wrote: post #46

Earlier quoted context omitted.

FDIC is a Federal organization that can not go under. Banks pay to insurance on deposit up to 250k. We now know that the insurance is unlimited but the fees are only based on 250k liability So if the amount of money left in FDIC is less than the amount of money needed to make depositors whole the FDIC gets its money from either the taxpayer or the Fed prints the money If Apple were to offer some kind of protection pl…

> FDIC gets its money from either the taxpayer or the Fed prints the money The piece that your missing is that if they do (like what just happened here) it done essentially a loan. And any funds provided will be recovered via a special assessment on banks. Essentially they will increase their insurance rates that banks pay. It is legally required that the banks themselves cover all costs, and FDIC cannot just take mo…

Banks are known for sacrificing their margins and not passing on fees directly to consumer. /s

Re: Tell HN: Chase shadow banned and closed my bank accounts

#66

Post by giantg2 »

phpisthebest wrote: post #39
scrollaway wrote: post #28

Earlier quoted context omitted.

It doesn’t say it in the post but it’s what happened. “Your account was closed and we can’t tell you why, also you’re banned now” is always suspected fraud or worse. Source: I work in fintech. Everyone who works in fintech knows this.

The "worse" has been proven to be political.. like when they closed gun dealers accounts a couple of years ago

While that sucks, my understanding is that was done differently. Those accounts were not locked and they told them a vague reason about risk. I believe they even gave them a month or so to withdraw before the accounts were to be closed.

If your account gets "flagged" and "locked" with no explaination at all, it's almost always suspected fraud, money laundering, or ties to blacklisted organizations.

Re: Tell HN: Chase shadow banned and closed my bank accounts

#67

Post by giantg2 »

tyoma wrote: post #12

You triggered a fraud/compliance issue. It is serious enough that they are closing all your accounts. If other banks also start closing your accounts, it may be time to find a lawyer.

It sounds like they "locked" the account. It should be time to see a lawyer now, depending on the balance.

Edit: why disagree?

Re: Tell HN: Chase shadow banned and closed my bank accounts

#68

Post by jolmg »

giantg2 wrote: post #63
jolmg wrote: post #3

> Anyone have any ideas of what I should do next? Contact the Consumer Financial Protection Bureau? https://en.wikipedia.org/wiki/Consumer_Financial_Protection_... Their homepage has a link on the top-right to submit a complaint. It's possible your state government also has an institution for consumer protection in the finance sector. For example, there's the California Department of Financial Protection and Innovati…

If your state doesn't have a specific consumer/financial agency, then these sort of things generally fall to the state attorney General office. You could file a complaint with them. I wouldn't be surprised if they can't do anything in this case though. It sounds like you got flagged related to some law enforcement activities and there's likely some legal action that will come your way. Their financial powers are basi…

If there's legal action, it makes sense that that would need to be resolved first before CFPB and the like would be able to do anything. Until some type of notice/explanation has arrived though, if the OP can't think of any legal reason for this, it shouldn't hurt to seek assistance from them and have them investigate what's going on.

Re: Tell HN: Chase shadow banned and closed my bank accounts

#69

Post by paganel »

nindalf wrote: post #64
paganel wrote: post #49

Earlier quoted context omitted.

> This bizarre claim that FDIC insurance is funded by taxpayers is becoming more prevalent. Because it is correct. In today's world you're pretty much forced to have a bank account open if you want to have a "normal" life, i.e. a life where you own a house (most probably via a mortgage), where you pay your bills (most probably online) and where you receive your salary (most probably via a bank account). As such, the…

In today's world you're pretty much forced to own a smartphone if you want to have a “normal” life. And half of all US taxpayers pay Apple for this privilege. That still doesn’t mean Apple is taxpayer funded. Hear me out, this may sound crazy, but maybe we should call something taxpayer funded if … it’s actually funded by taxes. Not if it is simply used by a person who may or may not pay taxes.

> And half of all US taxpayers pay Apple for this privilege. That still doesn’t mean Apple is taxpayer funded.

That's what's coming next, hopefully. For all its many faults the EU is going down that path in regards to the mobile phone industry and the related ecosystem. It's telling that the one article bashing Apple the company that is now on the HN home page has first been published by a French magazine.

Also, let's leave the "hear me out" thing to reddit.

Re: Tell HN: Chase shadow banned and closed my bank accounts

#70

Post by alxmng »

My account was randomly locked once too, with no warning or explanation. I went out to eat, tried to pay, and my card was declined. Chase said that there was some system whereby the treasury can just flag/lock accounts, and that they didn’t know the reason. I still don’t understand what they mean, but that’s what they said and that’s all they would say.

I was never involved in any shady business, the only money went in from payroll at a reputable company, and I only ever made normal purchases.

I also learned that you have no right to any money in your bank account, the bank doesn’t owe you an explanation for denying access, nothing. They also don’t owe you any damages from denying access. I had a rent check bounce because this. It’s pretty crazy. After this experience, I learned it’s increasingly common.

Do not ever keep money in a single account, you may be denied access without reason at any time.

Luckily for me, after two weeks, they “unlocked” it. Again, with no notification or explanation.

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