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Old Sep 18, 19, 1:47 pm
Join Date: Mar 2005
Programs: Continental Onepass, Hilton, Marriott, USAir and now UA
Posts: 4,479
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.
I imagine that it depends on what your relationship with the "national bank" is.
Are you using them strictly to deposit your MOs and then either withdraw the money to somewhere else or worse, pay off credit card bills? I suspect that your relationship with that bank is quite superficial and you use it for your MS activities. In that case, you know that at some point you are going to get shut down but it appears that this bank is giving you a heads up. (Psst! don't believe it for a minute. I suspect that the next communication you will get from them with be the infamous 30 day letter telling you to close the account).

In any event, to answer your question, big hitters hit their bank big and expect the axe to fall. They then just move on to another bank and start over.

The best way to avoid shut downs is to avoid appearing that you are doing nothing more that shuttling funds from MO---Bank---CC payoff. Having a substantial presence in the bank wouldn't hurt either
radonc1 is offline