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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

#621

Post by EVa5I7bHFq9mnYK »

genewitch wrote: post #182
trotsky666 wrote: post #100

Earlier quoted context omitted.

We as in "Socialist Party of America"? I did not have a chance to contribute to this "discussion". What happens when this unbanking is practiced en-masse or when the US defaults on its foreign debt, with USD failing as the global reserve currency? The second one is imminent, and not only in my opinion.

That second one had better happen before 2030, because after that the US and one south american country being the only nations with net positive birth rates - and therefore populations that aren't aging out of productive work - coupled with the fact that it will take the rest of the world a couple of centuries to catch up to our military, means that the U.S. just needs to not be stupid for another 6 years or so. So r…

>> I was told the US was the greatest country in the history of countries and i should be proud i was accidentally born here...

If you think you were lied to, you obviously have not lived in other countries. As shitty as America is, most of the the world is far worse ...

Re: Why banks are suddenly closing down customer accounts

#622

Post by batushka3 »

dboreham wrote: post #490

I didn't get de-banked, but I had a similar wacky experience last year with Wells Fargo. I was buying a car from a guy in Salt Lake City. Not a terribly expensive car. I live in Montana but at the time I was physically in Northern California on a trip. I'd driven to SLC and looked at the car, met the seller, and done various things to ensure I knew his identity (e.g. he used his work email and he had a medium profile…

wire transfer is one of those unique American things, other worlds feel hard to grasp how come it's still there

Re: Why banks are suddenly closing down customer accounts

#623

Post by Tao3300 »

TheCapeGreek wrote: post #495
Tao3300 wrote: post #317

Earlier quoted context omitted.

As a rule of thumb, people calling crypto a "space" are trying to hustle you.

huh? I'm no crypto fanatic, but I call plenty of things a "space". It's basically a synonym for niche?

Glad to hear that. Notice I said

> rule of thumb

Not to be confused with a universal law.

See also that the other comments pointed out that the USDC recommendation didn't even make a whole lot of sense. Hmm...

Re: Why banks are suddenly closing down customer accounts

#624

Post by jacquesm »

expertentipp wrote: post #620
jacquesm wrote: post #566

Earlier quoted context omitted.

Ironically those KYC requirements are there on account of the United States, not necessarily the Germans.

When once I was deregistered from an address ( Abmeldung ), the German bank instantly went apeshit hysterical with "Are you American?" letters. At least half dozen of them ignoring all of my previous responses or feedback. Of course I have nothing to do with US and none of my personal details indicate that I do, I'm fully EU person.

Indeed. US citizens moving to the EU regularly run into the fact that their citizenship makes it much harder to get a bankaccount (and sometimes even impossible). It's probably the biggest driver in people giving up their US citizenship (that and the ridiculous taxation rules).

Re: Why banks are suddenly closing down customer accounts

#625

Post by dwighttk »

mattdesl wrote: post #581
mcny wrote: post #544

Earlier quoted context omitted.

> There is a solution - not sure if everyone's ready to hear it yet: Decentralized finance. I want the pendulum to swing the other way. Everybody gets and gets to keep forever an account at the Reserve Bank. > self-hosted Ethereum wallet I'm sorry. The technology might be fine But I simply do not trust the people involved with cryptocurrency. Not just the scammers such as SBF, I don't trust the "victims" to make wise…

> I want the pendulum to swing the other way. Everybody gets and gets to keep forever an account at the Reserve Bank. Overhauling the financial system to ensure that citizens cannot have their accounts revoked on a whim sounds like a nice pipe dream. I am cynical we will ever see that in our lifetime, as countries prefer to have full control over their citizen's wallets (e.g. see Canada enacting Emergencies Act to cu…

Also doesn’t help noncitizens like ggg(however many,top of the thread)p

Re: Why banks are suddenly closing down customer accounts

#626

Post by csomar »

jacquesm wrote: post #566
nicbou wrote: post #511

Earlier quoted context omitted.

My job is to help immigrants settle in Germany. This is a serious issue for a lot of immigrants. The documents they need to open a bank account (plastic residence permit, address registration certificate) are not available to them, sometimes for up to a year. The ways around it are poorly documented and change often as German banks tighten their KYC requirements.

Ironically those KYC requirements are there on account of the United States, not necessarily the Germans.

Everyone here is not seeing the elephant in the room. No country will implement KYC on foreign money. It's free money. Yet, we live in world where pretty much every country requires a residence (and a dozen other documents) to open a bank account except, uhm, the USA.

I find the money transfer system created in Malaysia to be interesting. It started as a transfer system between banks, then an e-wallet that you can use to pay in stores, then they added a Visa card, then they integrated with Singapore, Indonesia and Thailand where you can pay locally with your MYR wallet. Now they added a remittance service that basically acts as a SWIFT transfer (though it looks expensive). It seems like they have found a way around the KYC rules. I wonder how long they can keep at it before they get hammered and if they can increase their Fx integrations to more countries.

Re: Why banks are suddenly closing down customer accounts

#627

Post by matwood »

EVa5I7bHFq9mnYK wrote: post #540
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…

I have been residing overseas for the last 6 years, living in and visiting 27 countries in total. I also have 5 bank accounts and 9 cards, all registered to a virtual mail address and a VoiP phone number. No problems so far. Protip: chill.

Expanding on your point, when people say 'overseas' they should be more specific. To take an extreme example, spending a bunch of time in France is different than say Somalia.

Re: Why banks are suddenly closing down customer accounts

#628

Post by dwighttk »

teddyh wrote: post #585
pjc50 wrote: post #552

Earlier quoted context omitted.

I'm surprised we haven't heard more lawsuits about this in notoriously litigious America. I find it hard to believe that "we can ruin you at any time" is a sustainably fair contract term.

In order to sue anyone, you need money. To have money, you need a bank account. Therefore, if the bank takes your account, you can’t sue the bank.

Yeah, but they’ve never done it to someone who knows someone with money?

Re: Why banks are suddenly closing down customer accounts

#629

Post by fullarr »

redox99 wrote: post #206
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…

> Glad we have so much energy focusing on legit bankers instead of the crypto that is actually funding multiple US adversaries at this very moment Funny you criticize crypto, when it actually solves all the bullshit you're mentioning. It's so nice knowing for a fact that when I send or receive crypto, it will 100% arrive within moments, unlike the absolute shitfest that is international transfers (like SWIFT).

To OPs point, everything you said is why criminals use it too

He's not wrong

Re: Why banks are suddenly closing down customer accounts

#630

Post by dwighttk »

ricardobayes wrote: post #618
Obscurity4340 wrote: post #605

Earlier quoted context omitted.

Jesus, this story :( . Your university couldn't wait a few days, their Finance department could't help? What a crazy outcome

I find it really difficult to believe it was a "one chance" thing. Universities have late enroll, plus appeals processes in place. It's in their interest to get paid in the end.

Yeah this sounds like this was the last chance to get current after many unmentioned-in-the-story deadlines
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