@Anonymous wrote:
@UncleB wrote:This is nothing new.
The case you mention that was reported on this site a while back wasn't just about cash advances... the member was taking out multiple, frequent cash advances then quickly paying them off, only to rinse and repeat (I forget the reason he did this, but there was a purpose). Capital One chose to close all his accounts rather than deal with the government paperwork that kind of activity requires by law (that activity pattern is one of the indicators of money laundering).
I've not read the reports on the other site, but if you say it was for 'legal' reasons that actually makes perfect sense. Rather than deal with the headaches (i.e. extra reporting/paperwork) caused by someone's questionable behavior, Capital One simply decides they aren't worth it.
It seems like a reasonable business decision to me, and is certainly nothing for 99.9% of their customers to be concerned about.
If you do too many cash advances that seems to trigger a red flag, but I did not realize about the extra work for the creditor to go through. Are there certain amounts?
Also I was going to post this seperately, but if I can just quickly ask about BT checks being used monthly or every other month for a few months then paying the balance off every month if that is looked at as being a red flag, that'd be great. As opposed to going to the ATM or what have you.
I've been using BT checks quite heavily recently, but paying the balance every month. Certainly am not money laundering and would not want any creditor thinking that. It's only for a few months. Seems like BT checks and cash advances are quite similar unless the computer registers the transactions differently in regards to firing off warning signals. The creditors still send the BT checks and actually more of them. Like I said it's only like a 4-5 month thing with paying the balance in full before the statement even cuts.
Sorry to hijack, if only slightly
To swing it back around maybe the overall profile we hear so much about comes into play at this point versus opening a card and quickly doing high amounts of cash advances when you only have a year or whatever of credit history. I don't know.
Just wanted to point out that even with most special promotions, you're paying 1-3% immediately for using a BT check (there are a few 0 fee transfers, but they are very rare). So, let's say you're paying a 2% fee and doing it every month for the same amount and paying it off. That's equivalent to 24% interest for the year. So, rather than worrying about your account getting flagged for excessive BT, you should probably focus on the money you're flushing down the toilet.
@happypill wrote:
@Anonymous wrote:
@UncleB wrote:This is nothing new.
The case you mention that was reported on this site a while back wasn't just about cash advances... the member was taking out multiple, frequent cash advances then quickly paying them off, only to rinse and repeat (I forget the reason he did this, but there was a purpose). Capital One chose to close all his accounts rather than deal with the government paperwork that kind of activity requires by law (that activity pattern is one of the indicators of money laundering).
I've not read the reports on the other site, but if you say it was for 'legal' reasons that actually makes perfect sense. Rather than deal with the headaches (i.e. extra reporting/paperwork) caused by someone's questionable behavior, Capital One simply decides they aren't worth it.
It seems like a reasonable business decision to me, and is certainly nothing for 99.9% of their customers to be concerned about.
If you do too many cash advances that seems to trigger a red flag, but I did not realize about the extra work for the creditor to go through. Are there certain amounts?
Also I was going to post this seperately, but if I can just quickly ask about BT checks being used monthly or every other month for a few months then paying the balance off every month if that is looked at as being a red flag, that'd be great. As opposed to going to the ATM or what have you.
I've been using BT checks quite heavily recently, but paying the balance every month. Certainly am not money laundering and would not want any creditor thinking that. It's only for a few months. Seems like BT checks and cash advances are quite similar unless the computer registers the transactions differently in regards to firing off warning signals. The creditors still send the BT checks and actually more of them. Like I said it's only like a 4-5 month thing with paying the balance in full before the statement even cuts.
Sorry to hijack, if only slightly
Just wanted to point out that even with most special promotions, you're paying 1-3% immediately for using a BT check (there are a few 0 fee transfers, but they are very rare). So, let's say you're paying a 2% fee and doing it every month for the same amount and paying it off. That's equivalent to 24% interest for the year. So, rather than worrying about your account getting flagged for excessive BT, you should probably focus on the money you're flushing down the toilet.
You're right. Makes me just about as uneasy as the possible red flag. Very short term thing.
