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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

#801

Post by eru »

whatshisface wrote: post #418
eru wrote: post #390

Earlier quoted context omitted.

> Maybe we made the wrong call across the board, and lower-productivity, but far higher trust commerce is the way to go... but a lot of that commerce is losing in the market, right now. Plenty of people in the comments here want to enforce that approach via laws and regulation.. > So if we like it, we have to be willing to pay extra for it. .. and I wonder if they are taking this into account.

In the same way that nobody knows which milk bottles are full of chalk, nobody knows enough about the hundreds of businesses they interact with on a daily basis to TOS comparison-shop. The understanding of what Google could do to your online life by closing your Gmail account is near to nonexistent in the consumer population.

> In the same way that nobody knows which milk bottles are full of chalk, nobody knows enough about the hundreds of businesses they interact with on a daily basis to TOS comparison-shop.

That's what brands and reputation are for. And it works: brands often do command a premium.

Re: Why banks are suddenly closing down customer accounts

#802

Post by psychlops »

lxgr wrote: post #246
redox99 wrote: post #206

Earlier quoted context omitted.

> 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).

On the other hand, crypto provides copious evidence for the need of some level of regulation.

For conversations sake I'm curious about specific evidence. It's also fun to consider which country or group of countries would provide the regulations and enforcement.

Re: Why banks are suddenly closing down customer accounts

#804

Post by refurb »

WalterBright wrote: post #459
refurb wrote: post #450

Earlier quoted context omitted.

From the data I’ve seen the poverty rate has trended down since the 60’s

https://aspe.hhs.gov/sites/default/files/private/pdf/154286/...

Exactly. Page 11. Poverty rates are lower now than in 1964.

Re: Why banks are suddenly closing down customer accounts

#805

Post by whatshisface »

eru wrote: post #801
whatshisface wrote: post #418

Earlier quoted context omitted.

In the same way that nobody knows which milk bottles are full of chalk, nobody knows enough about the hundreds of businesses they interact with on a daily basis to TOS comparison-shop. The understanding of what Google could do to your online life by closing your Gmail account is near to nonexistent in the consumer population.

> In the same way that nobody knows which milk bottles are full of chalk, nobody knows enough about the hundreds of businesses they interact with on a daily basis to TOS comparison-shop. That's what brands and reputation are for. And it works: brands often do command a premium.

It didn't work for milk bottles that's why I used it as an example.

Re: Why banks are suddenly closing down customer accounts

#806

Post by zlg_codes »

eganist wrote: post #635
zlg_codes wrote: post #447

Earlier quoted context omitted.

Cool ,I'll remember that when I'm starving because my account was frozen. For 'efficiency'. I'm glad they care so much about me as a customer. Banks are about to lose more trust, and money. I'll be doing some research into my credit union as well. Can't trust these institutions, man.

If you're comfortable sharing, which one?

It's in the PNW and rhymes with Win Far. Started as a teacher's union before opening up to the general public. I did some brief research into their background when I chose them, since I was looking for a no-frills checking account that wouldn't let me overdraft. Essentially just simple, "safe", normal banking or whatever, without fees.

The only catch seems to be that I had to buy a share in the company that I assume they make interest on later. Seems fair enough, and I haven't heard of anyone's account being closed randomly, at least not yet.

Re: Why banks are suddenly closing down customer accounts

#807

Post by x-complexity »

amjnsx wrote: post #524
x-complexity wrote: post #230

Earlier quoted context omitted.

> 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.

> Just as an FYI, USDC & stablecoins (and CBDC's) are centralised and the same abuse of power is possible here too.

It's the unfortunate consequence of one gigantic unaddressable problem:

USD can only be minted efficiently by the Fed.

- Collateralized stablecoins exist, but they're inefficient in that they must be overcollateralized to cushion against falling asset values.

- USDC & their kind are efficient, but at the cost of being centralization vectors as a result of current US legislation

- An efficient synthetic stablecoin can exist, but it requires deep liquidity in the marketplace to keep the peg stable. (Probably > $100B at the ready to absorb panic sells) Synthetic stocks are the closest analogy available for this, but applied upon a currency. The chicken-and-egg means that bootstrapping something like this is not feasible at small scales: It needs to be big from the get go.

Re: Why banks are suddenly closing down customer accounts

#808

Post by quinncom »

trickstra wrote: post #553
ajhurliman wrote: post #493

Earlier quoted context omitted.

Wise was reliable and cheap up until October when they cancelled all the business debit cards and changed all business account/ routing numbers, both with a 2 day heads up. There’s no way to pay any of the bills that require debit/credit cards, so I just had to get a brick and mortar account. Wise said they’re “working hard” on getting to issuing new debit cards, but can’t give any sort of timeline. I’ve moved the ma…

Can you recommend any alternatives?

For international money transfers, I prefer Remitly.com

Re: Why banks are suddenly closing down customer accounts

#809

Post by mancerayder »

teddyh wrote: post #786
BeFlatXIII wrote: post #694

Earlier quoted context omitted.

Find a lawyer who's willing to split the judgement 50/50. They only get paid once they win.

That only covers the incentive for the lawyer for one isolated case. But since such a lawyer will probably take many such cases (and often against the same banks), we must examine the incentives of such a lawyer more closely. The incentive of such a lawyer is to keep taking such cases, which means it is actually in the lawyer’s interest to deliberately lose some amount of such cases, in order to keep it profitable fo…

That implies the lawyers act in cahoots to try to influence this much greater body of people/power, over and against their immediate interests. It also implies they're fully crooked. It seems like an extraordinary claim (well, the former).

Re: Why banks are suddenly closing down customer accounts

#810

Post by thsksbd »

Ridj48dhsnsh wrote: post #478
thsksbd wrote: post #374

Earlier quoted context omitted.

That brings up very interesting questions: To which state would one owe taxes to since you're no linger a resident? Similarly, Americans abroad vote, but ppl in DC (not a state) cant? Can I avoid state taxes by sojourning in DC before moving abroad?

The answer depends on how your specific state defines tax residency (for example California is notoriously difficult to escape). Generally the rules will be something like you remain a tax resident of your old state, regardless of how long you stay abroad, until you establish a new permanent tax residency (whether in a new state or country). What I eventually did is return to the US, sign a 1 month lease in Florida s…

Americans abroad shouldn't pay taxes (since they get basically no benefits) or vote (why should those who live abroad affect the laws they are, largely, not subject to?)

Canada's rules are like that and I like it!

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