Chase Closing Accounts In Good Standing?

[copperrain]

Has anyone heard of Chase Bank “ending a relationship” with a customer who has significant assets at the bank and excellent credit? My boyfriend had quite a lot of money with them as well as a credit card. In all honesty, they make no money off him. They’ve tried to get him to use their ‘concierge personal banking’ services but he isn’t interested. He just keeps his cash there and makes regular cash withdrawals. He does not use the credit card. Last week he got a letter saying they were ending their relationship — those were really the words they used — and closing all his accounts including this credit card. He had been with them for over 15 years.

He went to a local branch and wired all the funds to a different bank. Everything went smoothly but what the heck? Should he be concerned? He has spoken to people at our local branch as well as Chase customer service but no one is able (or obligated) to tell him anything.

[Anonymous]

Sorry to hear about this, OP. There must have been something unusual going on to put him on Chase's radar screen, even if it was unintentional on his part. Did he do unusual transfers to/from accounts, have unusually large deposits or withdrawals, large numbers of transactions, increased account activity, or anything out of the ordinary?

Has he ever used his card for anything?

[Anonymous]

This CNN Money article is from 2014 but may provide some potential answers as well:

http://money.cnn.com/2014/05/07/pf/bank-account-closing/

[copperrain]

Thanks for the info!

Ironically, he does very little with the account which is, I guess, pretty unusual. He makes a few large (free) wire transfers in and out to a Fidelity investment account a couple times a year, periodically withdraws actual cash dollars (always under 10K) and doesn't use the credit card. 

Personally, I feel like he's well rid of them but I wonder if there will be any repercussions? Like now he's on some creepy bad banking guy watch list. Or maybe I just watch too much news.

[Anonymous]

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@copperrain wrote:

Thanks for the info!

Ironically, he does very little with the account which is, I guess, pretty unusual. He makes a few large (free) wire transfers in and out to a Fidelity investment account a couple times a year, periodically withdraws actual cash dollars (always under 10K) and doesn't use the credit card. 

Personally, I feel like he's well rid of them but I wonder if there will be any repercussions? Like now he's on some creepy bad banking guy watch list. Or maybe I just watch too much news.

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Thanks, OP. Are these business accounts that he has with Chase, or personal accounts? They can be funny about certain business (and also personal) transactions from what I understand.

How large are the wire transfers? You mentioned that his cash withdrawals are "always under 10k", but I could see a bank thinking that multiple 9k cash withdrawals might look like someone trying to stay just under the radar of the 10k ceiling.

My guess is that something spooked them in terms of money laundering or other suspicious activity. Not that he was doing so; but banks including Chase are especially sensitive to anything that looks out of the norm. 

A compliance algorithm has somehow been triggered on his account. It's very possible this happened because an alogorithm saw very little usual customer activity and almost exclusively wire transfers and large withdrawals. I'm just speculating here.

Chase's action should not affect his relationship with other banks; however, he needs to find out exactly why this happened as it is possible other banks could view whatever he is doing in the same way. He should receive a letter soon with additional information.

If the letter is vague and does not give him specifics related to account closure, he should take his inquiry to the Chase EO.

Banks unfortunately can end the relationship with any customer at any time, in the same manner that we can choose to end the relationship from our end. I'm sorry this happened to him.

[Anonymous]

Also - one additional thought for the future to minimize the appearance of something shady going on. Try having your boyfriend's employer take his Fidelity contributions directly out of his paycheck so there won't be the need for very large wire transfers through the bank.

Just a thought to minimize the appearance of something nefarious and to keep him lower on the radar screen.

[Anonymous]

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@copperrain wrote:

Has anyone heard of Chase Bank “ending a relationship” with a customer who has significant assets at the bank and excellent credit? My boyfriend had quite a lot of money with them as well as a credit card. In all honesty, they make no money off him. They’ve tried to get him to use their ‘concierge personal banking’ services but he isn’t interested. He just keeps his cash there and makes regular cash withdrawals. He does not use the credit card. Last week he got a letter saying they were ending their relationship — those were really the words they used — and closing all his accounts including this credit card. He had been with them for over 15 years.

He went to a local branch and wired all the funds to a different bank. Everything went smoothly but what the heck? Should he be concerned? He has spoken to people at our local branch as well as Chase customer service but no one is able (or obligated) to tell him anything.

Is he depositing cash as well?  That may have spooked them--cash in and cash out.  

[copperrain]

No, no cash deposits.

After reading the CNN article, I'm sure it's just that his atypical banking behavior threw up a red flag. 

Thanks for all the insight!