Bank Call about MS activity

Old Apr 14, 14, 2:48 pm
  #1  
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MS via CU Bank

Moderator's note:

The starter of the thread has deleted his posts, but this thread appears to be about the risks of depositing large volumes of money orders ($20K in 2 months) into an account at a credit union.

Last edited by cbn42; Apr 15, 14 at 12:45 am Reason: lack of positive comments
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Old Apr 14, 14, 2:51 pm
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This is why I suspect that most people don't MS through a CU. CUs tend to be smaller than banks and because the "members are owners" I believe that they don't tend to like MS because of the risk.
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Old Apr 14, 14, 2:54 pm
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false call.

Last edited by TheGreatMongo; Apr 14, 14 at 11:50 pm
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Old Apr 14, 14, 2:55 pm
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Depending on your MS level, I don't think you have much choice.

Once you reach a certain level, even the "I'm a slumlord who has his fifty tenants that pay me in MOs each month" excuse doesn't work.

While what you're doing isn't illegal, MS does create risk for the bank in the form of AML reporting and other requirements. So you may get your account closed even for what amounts to perfectly legal activity with a legitimate paper trail.

Chances are you're more likely to get kept if you have a long-standing relationship with that banking institution.
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Old Apr 14, 14, 2:55 pm
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Originally Posted by sethjvm View Post
This is why I suspect that most people don't MS through a CU. CUs tend to be smaller than banks and because the "members are owners" I believe that they don't tend to like MS because of the risk.
I think it's the opposite -- they are more likely to be OK with it than large, for-profit banks.
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Old Apr 14, 14, 2:58 pm
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I stand corrected.
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Old Apr 14, 14, 2:58 pm
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Originally Posted by TheGreatMongo View Post
I remeber people consistently mention that CU were better for MS acitivties than large banks.
There are arguments for and against.

For large banks, you may get "lost in the crowd". Banks like JPMorgan, Wells Fargo, etc. have hundreds of billions on deposit. However, once you do get caught there isn't much you can do. Risk group will cut you and there is nothing anybody, even branch managers, can do.

For small banks, there is more leeway once you get caught. Branch managers more often know their research/risk analysts and may be able to sway something in your favor. In addition, their controls tend to not be as developed and systems can be archaic - you might get away with it that way and go unnoticed.
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Old Apr 14, 14, 3:00 pm
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Originally Posted by TheGreatMongo View Post
Got a call from my CU bank (loss prevention). They wanted to know about my ms activity. deposits and ACH to pay CC.

I gave them an honest answer and said MO purchased with CC at supermarket and deposit. Then ACH to pay CC.
You purchased MOs with a CC? If so, nice find. I would have maxed that out myself.

Originally Posted by TheGreatMongo View Post

also, reiterate to her that my ms activity was not legal and my CC were ok with my purchases.
Your ms activity was legal.

Overall, I probably would have given them about the same amount of info.

My CU is very nosey. I get grilled every time I deposit an MO. How much volume were you doing?
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Old Apr 14, 14, 3:08 pm
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false call.

Last edited by TheGreatMongo; Apr 14, 14 at 11:48 pm
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Old Apr 14, 14, 3:11 pm
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Originally Posted by TheGreatMongo View Post
No I do not purchase MO with CC. just gave them the simplify process. This was a new acct open about 8wks ago. I deposit around 20k in that time.

They haven't close my acct yet but she will talk with her branch mgr and decide if he is comfortable with MS acitivity.
I only do 3k MOs at my CU. I'm sure I'd get a call if I did 10k.
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Old Apr 14, 14, 3:11 pm
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Originally Posted by TheGreatMongo View Post
No I do not purchase MO with CC. just gave them the simplify process. This was a new acct open about 8wks ago. I deposit around 20k in that time.

They haven't close my acct yet but she will talk with her branch mgr and decide if he is comfortable with MS acitivity.
Maybe you should have ramped up more slowly. I think any financial institution is likely to be more careful with new accounts.
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Old Apr 14, 14, 3:17 pm
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Originally Posted by PaulMSN View Post
Maybe you should have ramped up more slowly. I think any financial institution is likely to be more careful with new accounts.
Last time I was in, a teller put a 2 day hold on an MO and check - she cited relatively new account as one reason why.
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Old Apr 14, 14, 3:20 pm
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Most financial accounts are on at least a 1st 90 day watch. No wonder they are concerned.

Expect to have your account closed. If you agree, then get ahead of the train wreck and close it yourself so it doesn't show as a punitive closure on your credit report.

Originally Posted by TheGreatMongo View Post
No I do not purchase MO with CC. just gave them the simplify process. This was a new acct open about 8wks ago. I deposit around 20k in that time.

They haven't close my acct yet but she will talk with her branch mgr and decide if he is comfortable with MS acitivity.
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Old Apr 14, 14, 3:22 pm
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Originally Posted by TheGreatMongo View Post
This was a new acct open about 8wks ago. I deposit around 20k in that time.
You ran 20k in MOs through a brand-new account? Yeah, that'll get someone's attention.
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Old Apr 14, 14, 3:32 pm
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Why do so many people deposit the MOs? I just pay my CC provider with them. With chase or another similar bank you can just walk up to the teller and pay your bank branded CC with money orders. In the past couple of months I've paid around 20k to chase and mailed in about $15k to Barclay
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