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Old Sep 18, 19, 11:35 am
Join Date: Mar 2009
Posts: 1,614
Originally Posted by iahphx View Post
So I have not been shut down, but a national bank called me the other day to tell me that they've detected "manufactured spending" in my account because they've noticed I've been depositing money orders into that account. They told me I can't do that because the regulators don't like it, and that I should stop. I obviously will stop. I didn't actually deposit "that many" MOs into that account, probably about $1000/month for a few years, although in the weeks before the phone call, I had deposited around $2000, all online. This makes me worry that ALL banks are now devoting more effort to monitor money order deposits, and that this will be the ultimate "problem" with doing credit card MS. I mean, if depositing $2000/month in proceeds is "a problem," how the heck are the heavy hitters playing this game without problems? Do you have to find a "stupid bank" that you don't care about and just hope they don't notice your MO deposits? And if a bank does notice, do they share this information in any way with other banks, or with regulators? It just feels to me that the risks of doing this totally legal activity how now increased, even for folks who just buy a few MOs a month to meet minimum spends.
$2k does seem rather low to be a problem. Large banks have the manpower (and IT) to detect these things and meet regulatory requirements, small banks are generally exempted from a lot of regulations; it's really medium-sized banks that can't keep up with government regulations in these areas.

Did they really use the term "manufactured spending"?
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