Bank closing account for no given reason

[Deleted]

Hi everyone. I post on another board here, but I hear that you guys can be helpful with financial sort of issues.

Without going into too much detail, my husband has a few business accounts for retail stores he owns with the same bank. The oldest of all of the accounts is over 7 years old. All are in good standing and have always been so. He received a letter today that the bank will be closing all of the accounts in one month with no reason given as to why. He called them and they won't go any further than is being a business decision. I used to work in banking and the only thing I could think of is that they possible thought there was suspicious activity of some sort in the accounts, but there has been nothing illegal or close to illegal with the accounts.

My question is, is there anything we can do and does anyone have any clue as to why this is happening? If there is a certain issue I don't want the same thing to happen when we open accounts with another bank.

Thank you for any guidance you can provide!

[Saint Monica]

pandce.proboards.com/thread/418988/suntrust-bank-cancelled-accounts-notice

[Saint Monica]

[cjeanette]

Banks sometimes get rid of clients that are not profitable.

[Deleted]

Their are almost daily deposits in all the accounts in cash from the stores but that has always been the same. There is a very good amount of money in the accounts also so I'm assuming they are making money as well. I feel like his bank accounts would operate like any other retail store in that sense at least. It's the same account that pays employees and inventory out of as well.

[Deleted]

He was able to open up another account with no issues. Thanks for the ideas!

[littlemisssunshine]

Mar 30, 2015 19:04:07 GMT -5 @huahualove said:

He was able to open up another account with no issues. Thanks for the ideas!

So they closed his accounts but allowed him open up a new account at the same bank? That is so strange. I was the one who posted about Suntrust closing down all my accounts. I was a business owner and they gave me the same line about it being a business decision. However I was told I would never be allowed to open up an account at Suntrust ever again. And yet now that I'm not an account holder I get at least 3 pieces of mail a week from them advertising their banking products. Thanks, ban me for life and then rub it in my face. 

[Deleted]

Mar 31, 2015 9:18:13 GMT -5 littlemisssunshine said:

Mar 30, 2015 19:04:07 GMT -5 @huahualove said:

He was able to open up another account with no issues. Thanks for the ideas!

So they closed his accounts but allowed him open up a new account at the same bank? That is so strange. I was the one who posted about Suntrust closing down all my accounts. I was a business owner and they gave me the same line about it being a business decision. However I was told I would never be allowed to open up an account at Suntrust ever again. And yet now that I'm not an account holder I get at least 3 pieces of mail a week from them advertising their banking products. Thanks, ban me for life and then rub it in my face. 

Oh, it was an account with a new bank that he opened be accounts with. The original bank told him no more accounts would be allowed with them, yet there was one that wasn't flagged to close. It all seems so weird to me and I wish we could figure out exactly why this happened so that it won't happen again.

[lys]

OK - this is a bit off the usual track - but there have been a number of businesses that have been dealing with financing issues --- because of the kind of business they own or operate. IF your business is any where related to an issue that the current Obama administration does not like or viewed as politically incorrect (selling guns etc)
you will find it hard to stay in business. There have been a number of people in your same situation -- done nothing illegal, have a good financial record and they are being forced out of their financing.
Hopefully this is not your situation.

[aurora]

Really, lys? You're going to spout anti-Obama conspiracy theories on MM now? Once upon a time I defended you on CEP, saying you gave to-the-point financial advice here.

Please provide sourced details for your vague theories.

[littlemisssunshine]

Mar 31, 2015 9:33:15 GMT -5 @huahualove said:

Mar 31, 2015 9:18:13 GMT -5 littlemisssunshine said:

So they closed his accounts but allowed him open up a new account at the same bank? That is so strange. I was the one who posted about Suntrust closing down all my accounts. I was a business owner and they gave me the same line about it being a business decision. However I was told I would never be allowed to open up an account at Suntrust ever again. And yet now that I'm not an account holder I get at least 3 pieces of mail a week from them advertising their banking products. Thanks, ban me for life and then rub it in my face. 

Oh, it was an account with a new bank that he opened be accounts with. The original bank told him no more accounts would be allowed with them, yet there was one that wasn't flagged to close. It all seems so weird to me and I wish we could figure out exactly why this happened so that it won't happen again.

I'm in the same boat. I opened new accounts with a different bank but what's stopping them from closing my accounts? I do property management and will have the exact same type of transactions that Suntrust didn't like. I have filed with every consumer agency, Federal Reserve, etc looking for answers and have gotten no where. All I get is: "it was a business decision". I don't think I'll ever know what exactly triggered it. 

On a side note, I was making a 5k cash deposit into one of my clients bank accounts; some of his tenants had paid in cash at my office. It was a local bank and once they saw I wasn't on the account they wanted my driver's license and all my personal info. Apparently they have company set limit of cash deposits and if it's over that amount they want all your information for internal records. I gave them my driver's license but then they wanted my social security number. At that point I asked for the cash back and said I would be breaking it up into several smaller deposits. Random people aren't getting my social for no reason! 

[littlemisssunshine]

Mar 31, 2015 9:35:45 GMT -5 lys said:

OK - this is a bit off the usual track - but there have been a number of businesses that have been dealing with financing issues --- because of the kind of business they own or operate. IF your business is any where related to an issue that the current Obama administration does not like or viewed as politically incorrect (selling guns etc)
you will find it hard to stay in business. There have been a number of people in your same situation -- done nothing illegal, have a good financial record and they are being forced out of their financing.
Hopefully this is not your situation.

Neither the OP or I are trying to obtain financing. The banks simply closed our long standing business accounts for no reason. I do property management, hardly shady business. I sincerely doubt Obama had any thing to do with this. 

[Deleted]

Mar 31, 2015 9:35:45 GMT -5 lys said:

OK - this is a bit off the usual track - but there have been a number of businesses that have been dealing with financing issues --- because of the kind of business they own or operate. IF your business is any where related to an issue that the current Obama administration does not like or viewed as politically incorrect (selling guns etc)
you will find it hard to stay in business. There have been a number of people in your same situation -- done nothing illegal, have a good financial record and they are being forced out of their financing.
Hopefully this is not your situation.

I've actually read about the operation choke point and it could possible fit. It isn't guns or anything like that, it's supplement stores but maybe as a stretch I could see where it fits for why the accounts are being forced shut. We have no loans though, so it's just cash business accounts. It really is the best fit we can find as to why they are being closed. Hopefully this same issue won't come up at the new bank.

[LoveTrains]

Mar 31, 2015 10:09:57 GMT -5 aurora said:

Really, lys? You're going to spout anti-Obama conspiracy theories on MM now? Once upon a time I defended you on CEP, saying you gave to-the-point financial advice here.

Please provide sourced details for your vague theories.

Don't make us vote you off this island, too. and by "you" I mean lys. 

[LoveTrains]

Mar 31, 2015 10:11:46 GMT -5 littlemisssunshine said:

Mar 31, 2015 9:33:15 GMT -5 @huahualove said:

Oh, it was an account with a new bank that he opened be accounts with. The original bank told him no more accounts would be allowed with them, yet there was one that wasn't flagged to close. It all seems so weird to me and I wish we could figure out exactly why this happened so that it won't happen again.

I'm in the same boat. I opened new accounts with a different bank but what's stopping them from closing my accounts? I do property management and will have the exact same type of transactions that Suntrust didn't like. I have filed with every consumer agency, Federal Reserve, etc looking for answers and have gotten no where. All I get is: "it was a business decision". I don't think I'll ever know what exactly triggered it. 

On a side note, I was making a 5k cash deposit into one of my clients bank accounts; some of his tenants had paid in cash at my office. It was a local bank and once they saw I wasn't on the account they wanted my driver's license and all my personal info. Apparently they have company set limit of cash deposits and if it's over that amount they want all your information for internal records. I gave them my driver's license but then they wanted my social security number. At that point I asked for the cash back and said I would be breaking it up into several smaller deposits. Random people aren't getting my social for no reason! 

The bank is required to collect your SSN for certain size deposits thanks to the patriot act. 

[mrsfarmer]

Mar 31, 2015 12:01:11 GMT -5 LoveTrains said:

Mar 31, 2015 10:11:46 GMT -5 littlemisssunshine said:

I'm in the same boat. I opened new accounts with a different bank but what's stopping them from closing my accounts? I do property management and will have the exact same type of transactions that Suntrust didn't like. I have filed with every consumer agency, Federal Reserve, etc looking for answers and have gotten no where. All I get is: "it was a business decision". I don't think I'll ever know what exactly triggered it. 

On a side note, I was making a 5k cash deposit into one of my clients bank accounts; some of his tenants had paid in cash at my office. It was a local bank and once they saw I wasn't on the account they wanted my driver's license and all my personal info. Apparently they have company set limit of cash deposits and if it's over that amount they want all your information for internal records. I gave them my driver's license but then they wanted my social security number. At that point I asked for the cash back and said I would be breaking it up into several smaller deposits. Random people aren't getting my social for no reason! 

The bank is required to collect your SSN for certain size deposits thanks to the patriot act. 

And that is not because of Obama.

[craftyone]

Are the account in personal names or business names? Under EIN's or SSN's? I could see a bunch of SSN's with cash deposits as being flagged.

[craftyone]

Mar 31, 2015 12:05:05 GMT -5 mrsfarmer said:

Mar 31, 2015 12:01:11 GMT -5 LoveTrains said:

The bank is required to collect your SSN for certain size deposits thanks to the patriot act. 

And that is not because of Obama.

I was a bank teller back in the mid-90's and we had to report any deposit or withdrawal of 10k in cash to the IRS

[Deleted]

Mar 31, 2015 12:07:46 GMT -5 craftyone said:

Are the account in personal names or business names? Under EIN's or SSN's? I could see a bunch of SSN's with cash deposits as being flagged.

It's under the business with my h and one other signer on each account.

[craftyone]

Mar 31, 2015 12:22:19 GMT -5 @huahualove said:

Mar 31, 2015 12:07:46 GMT -5 craftyone said:

Are the account in personal names or business names? Under EIN's or SSN's? I could see a bunch of SSN's with cash deposits as being flagged.

It's under the business with my h and one other signer on each account.

Are they under SSN's or EIN's?

[madringal]

I am a branch manager for one of the BIG banks. We can close an account for any reason or no reason at all. We do not have to give a reason, or explanation. Our response is a standard "XYZ Bank can close your account for any reason or no reason."

That being said, the most common reason is suspected violations of AML laws or suspcious/fradulent activity. Also, if you business is involved in what we consider a "unbankable" activity - porn industry, arms manufacturing, money servies, etc.

[Deleted]

Mar 31, 2015 12:25:35 GMT -5 craftyone said:

Mar 31, 2015 12:22:19 GMT -5 @huahualove said:

It's under the business with my h and one other signer on each account.

Are they under SSN's or EIN's?

The business accounts are under the tax ID for the businesses. Assuming that is the same as EIN's.

[Deleted]

Mar 31, 2015 13:17:43 GMT -5 madringal said:

I am a branch manager for one of the BIG banks. We can close an account for any reason or no reason at all. We do not have to give a reason, or explanation. Our response is a standard "XYZ Bank can close your account for any reason or no reason."

That being said, the most common reason is suspected violations of AML laws or suspcious/fradulent activity. Also, if you business is involved in what we consider a "unbankable" activity - porn industry, arms manufacturing, money servies, etc.

When I worked for a bank we also could close any account for whatever reason as well, it's just we didn't do it just because sort of thing. I know there has to be some reason they decided to close it. Thank you all for all the insight!

[madringal]

Mar 31, 2015 13:42:52 GMT -5 @huahualove said:

Mar 31, 2015 13:17:43 GMT -5 madringal said:

I am a branch manager for one of the BIG banks. We can close an account for any reason or no reason at all. We do not have to give a reason, or explanation. Our response is a standard "XYZ Bank can close your account for any reason or no reason."

That being said, the most common reason is suspected violations of AML laws or suspcious/fradulent activity. Also, if you business is involved in what we consider a "unbankable" activity - porn industry, arms manufacturing, money servies, etc.

When I worked for a bank we also could close any account for whatever reason as well, it's just we didn't do it just because sort of thing. I know there has to be some reason they decided to close it. Thank you all for all the insight!

What I meant is that they just don't have to tell you the reason.  There is very likely a legitimate (to the bank) reason, they are just choosing not to tell you  And they don't have to.

[waffletime]

Mar 31, 2015 13:17:43 GMT -5 madringal said:

I am a branch manager for one of the BIG banks. We can close an account for any reason or no reason at all. We do not have to give a reason, or explanation. Our response is a standard "XYZ Bank can close your account for any reason or no reason."

That being said, the most common reason is suspected violations of AML laws or suspcious/fradulent activity. Also, if you business is involved in what we consider a "unbankable" activity - porn industry, arms manufacturing, money servies, etc.

Yup. I worked at a bank for three years and the only time I saw an account closed for any reason other than negative balances/abuse of overdraft were for these things. Especially if you only have cash deposits.