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Why banks are suddenly closing down customer accounts

nytimes.com

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Re: Why banks are suddenly closing down customer accounts

#521

Post by close04 »

Clubber wrote: post #353
creer wrote: post #107

Earlier quoted context omitted.

No such thing as "an algorithm run amuck" - more like "another department run amuck". Someone programmed the thing, someone is running it deliberately.

>No such thing as "an algorithm run amuck" - more like "another department run amuck". Someone programmed the thing, someone is running it deliberately. Not to defend banks, but you know how many bugs the average large software system has?

With such a critical activity that has the potential to destroy lives, "a bug" is not a good enough excuse. Hire a human to override the bug driven decision. These aren't bugs but conscious decisions taken by each bank because the fallout is on few enough customers that they don't need to worry. I've worked with/in enough banks to know someone intentionally drew a line and everyone who happens to fall under it can just suck it up.

Re: Why banks are suddenly closing down customer accounts

#522

Post by ArabicBaklava »

jgilias wrote: post #505
ArabicBaklava wrote: post #481

Bank of america did this to me, in the same weekend i was moving out. All my stuff was in the car, it was a friday at 3PM and i was in the gas station. I couldn't fill up my gas. Called and they told me to come to the bank with two forms of ID. When I arrived to the bank the fraud department was operating in NY (3hrs ahead) and they were closing, so they told me to come next tuesday (it was a long weekend). I went ho…

Sorry this happened to you! I’m glad you managed to eventually pick yourself up after that experience! Stories like yours highlight how important the freedom to transact is. It’s all fine and dandy until one day suddenly it isn’t and you’re completely fucked.

Thank you for your empathy, it was a very difficult time and i am glad i made it out. Banks have substantial power with the ability to close accounts unexpectedly, we must push for a financial system that minimizes those risks and enhances consumer protection. Situations like this is a clear reminder of how crucial financial freedom and security are.

Re: Why banks are suddenly closing down customer accounts

#523

Post by trompetenaccoun »

ArabicBaklava wrote: post #494
ArabicBaklava wrote: post #481

Bank of america did this to me, in the same weekend i was moving out. All my stuff was in the car, it was a friday at 3PM and i was in the gas station. I couldn't fill up my gas. Called and they told me to come to the bank with two forms of ID. When I arrived to the bank the fraud department was operating in NY (3hrs ahead) and they were closing, so they told me to come next tuesday (it was a long weekend). I went ho…

Well, this happened in 2017.. fast forward to this account closure effect on my life: I had to go back to my country, without a degree, was not able to land any job. Unfortunately, good places require degrees. Stayed unemployed, hit with chronic depression as anyone would. Lost 4+ years of professional progress. When covid came, i was able to complete my degree online and graduated in 2021, but because all fresh grad…

Horrible. I've heard similar stories but this one's the worst by far. This shouldn't be allowed to ever happen again, such sudden closures without warning need to be illegal.

The issue is banking is highly regulated but a lot of the regulation is about AML, terrorism screening and such. Not actually protecting customers from abuse but rather the other way around - banks are taking precautions to protect themselves from customers. Some of the regulation is also the result of decades of lobbying efforts by major players, making it extremely hard for new ones to compete. Banks are rarely held accountable because for some reason most regular people are fine with this or don't understand it.

There is a solution - not sure if everyone's ready to hear it yet: Decentralized finance. Good luck to a bank trying to shut down your self-hosted Ethereum wallet. Banks provide important services and will continue to exist, but giving them full unchecked control over our life savings and finance is mad. There are a lot of other issues with the current system, and many people don't really understand the contracts they're signing, including that they don't legally own "their money" in the bank account in most cases (they're creditors). But the question of effective control over ones own funds is the most crucial one to me.

Re: Why banks are suddenly closing down customer accounts

#524

Post by amjnsx »

x-complexity wrote: post #230
zb3 wrote: post #90

Earlier quoted context omitted.

How can I pay my bills with bitcoin while being debanked?

> How can I pay my bills with bitcoin while being debanked? Acting as an alternative to krupan's Bitcoin-centric answer: - There are other crypto rails other than Bitcoin that could be used in its place. USDC & stablecoins in general is going to be the medium-term winners in this space, as more services are set up to help people pay their bills with stablecoins. Here are 2 services that I've found within a few minute…

Just as an FYI, USDC & stablecoins (and CBDC's) are centralised and the same abuse of power is possible here too. Obviously being debanked in fiat and crypto at the same time is extremely unlikely...but possible if someone is REALLY out to get you.

Re: Why banks are suddenly closing down customer accounts

#527

Post by YinLuck- »

jopsen wrote: post #382
xbmcuser wrote: post #311

Its funny how people made a big hoopla about chinese system of black marking individuals to me this seems to be the same. And from the looks of it in China at least prosecutes you or you know why you have the black mark. In the US you get black mark then are not even told why so not even sure what you did wrong just like the US no fly list. The land of the free.

These things simply don't compare. Any such attempt smells like trolling to me. System that are shitty by accident, do not compare to intentional evil.

[dead]

Re: Why banks are suddenly closing down customer accounts

#528

Post by amjnsx »

SrslyJosh wrote: post #368
krupan wrote: post #60

Earlier quoted context omitted.

Just a tip, stick with Bitcoin, not crypto.

Bitcoin is a cryptocurrency, Chuckles.

It's important to point out that the words "cryptocurrency" and "blockchain" aren't mentioned once in the Bitcoin whitepaper.

Re: Why banks are suddenly closing down customer accounts

#529

Post by arthur_sav »

kylehotchkiss wrote: post #78

Protip to anybody who wants to spend an extended amount of time overseas - you’re looking at a strong opportunity to join the list of people who have their accounts closed. Red flags include quantity of overseas debit card transactions, setting a PO Box (this one apparently is a very big red flag to banks) or a PMB as your bank address, lots of wire transfers. Open multiple bank accounts at different banks, use servi…

> wise.com

Wise is like Paypal 2.0. If you sneeze the wrong way, they'll freeze your account.

Re: Why banks are suddenly closing down customer accounts

#530

Post by bergen »

pauldenton wrote: post #497
panarky wrote: post #149

Earlier quoted context omitted.

The fact that someone with a political opinion had their account closed is not evidence that Chase is monitoring all their customers' political activity and systematically closing accounts for political activity Chase doesn't like. The same way that Chase closing a restaurant's account is not evidence that Chase is tasting the food in every restaurant and systematically closing accounts for restaurants that cook food…

So what alternative theory do you have for all those accounts being closed?

Risk avoidance. Extremists (!) are more likely to have dubios donors. And even if they're "normal" political figures or activists, their behaviour in public might damage the bank.

This being said this approach is a pretty wild one still, since people NEED banks, and there should be long duration till the expiration (except in cases of fraud, money laundering, ..)

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