US Bank adverse action

Old Jul 6, 14, 2:12 am
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US Bank adverse action

I got a letter from US Bank telling me that my checking and savings account will be closed in 10 days, although there was no mention of closure of my credit card accounts. I've done a few thousand MO/cash deposits every month plus a few thousand more from AP. Has anyone had a similar experience? Does that usually mean that my CC accounts will be closed as well?
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Old Jul 6, 14, 2:31 am
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What did the letter say precisely? (Did it give a specific reason?) How many months had you been running the cash through these accounts?
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Old Jul 6, 14, 3:19 am
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Originally Posted by flyertalkingallday View Post
I got a letter from US Bank telling me that my checking and savings account will be closed in 10 days, although there was no mention of closure of my credit card accounts. I've done a few thousand MO/cash deposits every month plus a few thousand more from AP. Has anyone had a similar experience? Does that usually mean that my CC accounts will be closed as well?
I actually just had this happen. They did not close my credit line, but it does not work for ordering AGC. See the post here. I went ahead and closed my account voluntarily so as to avoid it being terminated on CHEX.
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Old Jul 6, 14, 4:14 am
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Originally Posted by airstairfear View Post
What did the letter say precisely? (Did it give a specific reason?) How many months had you been running the cash through these accounts?
The reason was given as "in accordance with your Deposit Account Terms and Conditions." I was depositing $2-3k/month in cash/MOs for the last 4 months. I am pretty sure that it was due to my $4k/month in AP transfers.

Originally Posted by frequentflyingpenguin View Post
I actually just had this happen. They did not close my credit line, but it does not work for ordering AGC. See the post here. I went ahead and closed my account voluntarily so as to avoid it being terminated on CHEX.
Great idea, I think I'll go ahead and close my accounts preliminarily. My Club Carlson has blocked AGC purchases ever since I got the card.
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Old Jul 6, 14, 4:36 am
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Originally Posted by flyertalkingallday View Post
The reason was given as "in accordance with your Deposit Account Terms and Conditions." I was depositing $2-3k/month in cash/MOs for the last 4 months. I am pretty sure that it was due to my $4k/month in AP transfers.
Honestly I think that's insane for them to close the account based on the dollar amounts (and manner of deposit) alone.

Call the cash&m.o. $2500/mo average. If you were doing some hobby woodworking or something in your basement in your free time you could easily bring in that kind of money.. that's $30k, barely enough to live on. No actually that's gross; for all they know you were netting $2k/_year_ on whatever cash biz you had. Hell this could have been lawn mowing money it's so small. Yes, if you were doing this you'd have to declare the cash income but that doesn't seem to be their concern. And I'm guessing they didn't ask to see your estimated tax payment receipts for this last quarter.

$4k/mo in AP, I don't see the issue there either. So you have transfers coming in from a legit internet payment processor. So what? What if you had clients paying you this way? I used to pull $15k/mo out of paypal (legit stuff) right to a bank account and I don't see why a service like AP would be any more suspicious. Same deal. Wells Fargo never cared.

This is bogus. I'm shocked they'd do such a thing without at least asking questions first. Any sole proprietor / hobbyist could be showing these exact transactions in their personal account so God help them if they bank at US Bank.

Last edited by airstairfear; Jul 6, 14 at 4:42 am
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Old Jul 6, 14, 4:56 am
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Originally Posted by flyertalkingallday View Post
I am pretty sure that it was due to my $4k/month in AP transfers.
I wouldn't be so quick to jump to conclusions.

Start with their letter and their stated reasons.

How many transactions (deposits + withdrawals + ach + anything else) were you doing to your SAVINGS account each month?

If I had to guess, I'd guess you ran afoul of Regulation D. http://en.wikipedia.org/wiki/Regulation_D_%28FRB%29

Last edited by seat17D; Jul 6, 14 at 5:05 am Reason: added link
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Old Jul 6, 14, 6:59 am
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Likely not. You don't want to be running a lot of cash and MOs through bank accounts in what is a very conservative bank. Tread lightly with US Bank, an institution outed as an MS hater when the US Mint was spewing coins like an old time slot machine.

Originally Posted by flyertalkingallday View Post
I got a letter from US Bank telling me that my checking and savings account will be closed in 10 days, although there was no mention of closure of my credit card accounts. I've done a few thousand MO/cash deposits every month plus a few thousand more from AP. Has anyone had a similar experience? Does that usually mean that my CC accounts will be closed as well?
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Old Jul 6, 14, 7:51 am
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Originally Posted by AlohaDaveKennedy View Post
Likely not. You don't want to be running a lot of cash and MOs through bank accounts in what is a very conservative bank. Tread lightly with US Bank, an institution outed as an MS hater when the US Mint was spewing coins like an old time slot machine.
Still can't believe I missed the Mint deal. Anyway, I wouldn't assume anything. It could be it was a random action, part of a cycle of closing a limited number of account with MO or Internet transactions.
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Old Jul 6, 14, 7:52 am
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US Bank shut me down in June 2014 for MO deposits right in your range. No AP. So far CC still alive.
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Old Jul 6, 14, 11:17 am
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Datapoint: Until the WM plug, I was doing 25-30K in MO monthly

Still going strong with my accounts

Last edited by RFDMinnesota; Jul 6, 14 at 11:20 am Reason: Forgot second sentence
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Old Jul 6, 14, 3:40 pm
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-edit

Last edited by Alcibiades; Jul 14, 14 at 7:35 am
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Old Jul 6, 14, 3:59 pm
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With that kind of "safe" volume, this makes no sense.

No issues here. I've been depositing around 4K cash/MOs each month starting 4 months ago. No AP. Acct was opened in 2005, no idea if that helps or that I seem to have been mistakenly classified as a military customer.

When were the accts opened?
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Old Jul 6, 14, 8:46 pm
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What makes you think they have you labeled as a military customer?
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Old Jul 6, 14, 10:46 pm
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Originally Posted by RFDMinnesota View Post
Datapoint: Until the WM plug, I was doing 25-30K in MO monthly

Still going strong with my accounts
Just US bank alone? How old is your account.
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Old Jul 6, 14, 10:51 pm
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I've had the accounts open for a year and a half. All transactions were through my checking account; none were through my savings. I've deposited as much as $5k in a month in the past with no problems.

I brought up AP because there have been previous datapoints about Chase checking customers being questioned about their AP and PayPal deposits.
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