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Amex, Capital One, Schwab, & Others Closed Account Without Notice

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longtimelurker
Epic Contributor

Re: Amex, Capital One, Schwab, & Others Closed Account Without Notice


@Credit12Fico wrote:

@longtimelurker wrote:

This may not provide any useful info, but have you considered going to a new bank (that perhaps you aren't all that interested in!) and explain the federal conviction and ask if that would cause any issues in having an account with them.  (My assumption is that this "general" inquiry is not covered by the severe secrecy rules impacting actual accounts, SARs etc).


The problem here is there is usually a big disconnect between the front line reps and bankers, and the back office folk who audit accounts. The left hand doesn't know what the right hand is doing. Account that is opened can be closed later (which is what happened to OP already).


Right, which is why I said it may not help.   But it's just possible that a rep may have some knowledge that the bank doesn't want to do business with [whatever the conviction was for]..   But not too many options.  I like @NRB525 suggestion about US House and Senators, but that may also depend on their views ("Actions have consequences....") although you would hope that the age at the time of the offence should help mitigate. 

Message 11 of 16
Mr_Mojo_Risin
Senior Contributor

Re: Amex, Capital One, Schwab, & Others Closed Account Without Notice


@NRB525 wrote:

@IntegerIntrovert wrote:

I appreciate you bringing this issue up. Can you share what you were convicted of? I think that would help determine what may have caused the blacklisting.  

 


I don't think this would be appropriate additional info. It is likely too easy to triangulate to identify the OP, and all of us here avoid that for ourselves.  

I also appreciate the OP bringing up the issue. I would hope there is a contact provided above who can give more specifics to the OP, and that there is an appeal process through Treasury to get this cleared up. 

OP I would suggest contacting your US House Representative and US Senators from your state, as their offices have significantly more pull with Federal agencies.  


This sounds like really good advice here. It might be a slow grind but could yield positive results.

NFCU More Rewards 28K CL
NFCU Cash Rewards 16K CL
Citi Custom Cash 7.5K CL
AODFCU Visa Sig 5K CL
Discover IT 2.5K CL
Capital One QS 3600 CL
Message 12 of 16
dogmeat
Regular Contributor

Re: Amex, Capital One, Schwab, & Others Closed Account Without Notice

Do you dabble in cryptocurrency, and have you recently (or ever) withdrawn largish ( > ~100k USD) amounts from exchanges into your bank account? There have been a number of occurances of cascading bank closures for such (normal) behavior within the cryptocurrency community.  Typically people are flagged as "money laundering risk", resulting in bank closures and the inability to open new bank accounts.  There is at least one specific not-well-known (on MF) "CRA" type company that publishes this risk data, and that apparently banks look at.  If you think this may be the cause I can provide you a link.

Message 13 of 16
designated_knitter
Established Contributor

Re: Amex, Capital One, Schwab, & Others Closed Account Without Notice


@IntegerIntrovert wrote:

More thoughts here, I'm betting there is an off book government list that's being shared with banks related to criminal activity. 

In that case well you're probably out of luck. Maybe setup a Wyoming LLC and use business credit would be my best advice. 


This^^^^

When I worked at BB&T, there was a specific government list that had SSNs for everyone on AML watch list.

 

I also remember buying a car about 6 years ago and in order to get financing, they had a physical book that they had to consult to make sure my SSN wasn't in there... the finance guy checked it while I was sitting there.  


That list is likely a computerized DB by now and they probably run audit checkpoints against the database periodically to ensure account holders haven't wound up on the list.  It could have to do with preparation for a regulatory audit coming up (thus the difference in timing of th3 account closures.

 

I believe all this was as a result of the Patriot act after 911.  What the solution is?  I have no idea but it isn't likely something you can just dispute because it is likely a government agency that is maintaining the list.

 

Good luck and I'm sorry you're having to deal with this.

Started Over Again after Cap1 Death Penalty:
06/15/2019:
03/02/2021:
04/06/2021:
05/28/2021:
Lesson Learned: DON'T POKE THE BEAR!!! THE BEAR WILL WIN!!!
Message 14 of 16
adelphi_sky
Frequent Contributor

Re: Amex, Capital One, Schwab, & Others Closed Account Without Notice


@designated_knitter wrote:

@IntegerIntrovert wrote:

More thoughts here, I'm betting there is an off book government list that's being shared with banks related to criminal activity. 

In that case well you're probably out of luck. Maybe setup a Wyoming LLC and use business credit would be my best advice. 


This^^^^

When I worked at BB&T, there was a specific government list that had SSNs for everyone on AML watch list.

 

I also remember buying a car about 6 years ago and in order to get financing, they had a physical book that they had to consult to make sure my SSN wasn't in there... the finance guy checked it while I was sitting there.  


That list is likely a computerized DB by now and they probably run audit checkpoints against the database periodically to ensure account holders haven't wound up on the list.  It could have to do with preparation for a regulatory audit coming up (thus the difference in timing of th3 account closures.

 

I believe all this was as a result of the Patriot act after 911.  What the solution is?  I have no idea but it isn't likely something you can just dispute because it is likely a government agency that is maintaining the list.

 

Good luck and I'm sorry you're having to deal with this.


I don't think the OP's situation is so fatalistic as some people fear. If the OP's felony has NOTHING to do with mone laundering, then the government has a responsibility under law to state why this person's SSN is on that list. It's like conviction without due process. At the very least, charge the OP with conspiracy with terrorist ties or money laundering for terrosists. But for someone's SSN to wind up on the list for no apparent reason at all is not right. 

 

There could be a mistake or his SSN could have been stolen. After all, identity theft is real and pervasive. It could happen to any of us. I've seen people put on no-fly lists by mistake. We all know the government isn't exactly iron clad on a lot of things. It is run by average people who can make mistakes. 

 

Lastly, I find it odd that the OP wasn't notified of the restriction. Which tells me there is a mistake or identity theft. I would assume he would receive an official letter of said agency notifying the OP that he/she has been placed on the money laundering list with a number to contact the agency with any questions or concerns. I know it may be the Patriot Act and all but come on, at least let people know why their privilages have been taken. 

 

 If the OP has been on the up and up since being released and his conviction is not related to any financial crime, there's no reason their SSN should be on that list. Period. Like I said, it could happen to anyone of us without us even receving a speeding ticket. All it takes is one mistaken digit on a form.

 

If this is do to the Patriot Act, the OP can contact Homeland Security. Or their congressional representatives. 

Message 15 of 16
FinStar
Moderator Emeritus

Re: Amex, Capital One, Schwab, & Others Closed Account Without Notice

As the OP has not been back to the forums to amplify any responses, the thread is now locked and closed to new messages.

 

If the OP returns and wishes to continue the discussion, they're welcome to contact any Moderator.

Message 16 of 16
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