I used to bank with Key Bank. One day when contracting I had a bunch of transactions hit my personal account, and so I deposited funds (cash) to cover it. By a wallclock ordering, my account never was out of the black...
... until midnight that night, when Key Bank "reordered my transactions" and said that electronic transactions were considered to hit my account at midnight, regardless of when they actually hit (like using a keypad at a store)., i.e. you could have $200 in your bank at midnight, deposit $300 cash at an ATM at 9am (balance $500), and at 5pm buy $300 of groceries, leaving your balance of $200. All good, right? No, in Key Bank (and other's) policy, you had $200 at midnight, then a $300 transaction for groceries, overdrawing you by $100, assessing you a $35 overdraft fee, and then you clear the overdraft at 9am, leaving your balance of $165.
The way this worked out for me was $280 in overdraft fees for a single day where I was never actually in the black until they ran their shady game.
They waived one fee as a "courtesy". I refused to pay the fees. My account was closed.
They then reported me to ChexSystems as a high risk and delinquent customer and for the next few years I couldn't open a bank account at any bank that used ChexSystems (the very vast majority). Even when the whole transaction reordering thing was made illegal, even when there was a class action against Key Bank, etc., of course, they admitted no wrongdoing, so didn't remove the black mark against me.
This makes me incredibly grateful for having a regulator with teeth in Australia. AFCA very recently awarded me (well, my mum whom I was helping) $1,000 with very little work due to Bank of Queensland temporarily locking an account.
> Lloyds has not explained why it has taken this action… despite multiple communications from us
Because you've tripped an AML flag you unbearable dweebs, this happens a thousand times every week and the story is always the same, tipping off rules actively prevent notification. But of course the reason must be political, because that's the only story that will drive traffic to an otherwise unknown outlet
What’s new is banks coordinating to prevent someone who has been de-banked from being re-banked, as discussed in TFA. Oh, and that this was a journalistic outlet that was de-banked; possibly not an AML case based on the UK’s recent targeting of activists.
> that's the only story that will drive traffic to an otherwise unknown outlet
Naked Capitalism (the blog where this is published) has been around since before the GFC and is actually quite well-known among those who read, especially for its coverage of financial shenanigans. The economist Michael Hudson often comments there, and they sometimes republish his work. They are highly critical of the hyperfinancialization that’s taken over the economy, but despite this bias they often have a clearer view of what’s happening than the subservient and often manipulative financial press.
So now that I randomly tripped some "flag" of some obscure algorithm, my innocence doesn't matter anymore and actions taken against me (without compensation) are automatically justified?
We should be ok with that just because this is how it works?
I didn't have a bank account for 7 years after uni. Somehow survived. First world .1% issues...
Remember transaction reordering?
I used to bank with Key Bank. One day when contracting I had a bunch of transactions hit my personal account, and so I deposited funds (cash) to cover it. By a wallclock ordering, my account never was out of the black...
... until midnight that night, when Key Bank "reordered my transactions" and said that electronic transactions were considered to hit my account at midnight, regardless of when they actually hit (like using a keypad at a store)., i.e. you could have $200 in your bank at midnight, deposit $300 cash at an ATM at 9am (balance $500), and at 5pm buy $300 of groceries, leaving your balance of $200. All good, right? No, in Key Bank (and other's) policy, you had $200 at midnight, then a $300 transaction for groceries, overdrawing you by $100, assessing you a $35 overdraft fee, and then you clear the overdraft at 9am, leaving your balance of $165.
The way this worked out for me was $280 in overdraft fees for a single day where I was never actually in the black until they ran their shady game.
They waived one fee as a "courtesy". I refused to pay the fees. My account was closed.
They then reported me to ChexSystems as a high risk and delinquent customer and for the next few years I couldn't open a bank account at any bank that used ChexSystems (the very vast majority). Even when the whole transaction reordering thing was made illegal, even when there was a class action against Key Bank, etc., of course, they admitted no wrongdoing, so didn't remove the black mark against me.
This makes me incredibly grateful for having a regulator with teeth in Australia. AFCA very recently awarded me (well, my mum whom I was helping) $1,000 with very little work due to Bank of Queensland temporarily locking an account.
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> Lloyds has not explained why it has taken this action… despite multiple communications from us
Because you've tripped an AML flag you unbearable dweebs, this happens a thousand times every week and the story is always the same, tipping off rules actively prevent notification. But of course the reason must be political, because that's the only story that will drive traffic to an otherwise unknown outlet
What’s new is banks coordinating to prevent someone who has been de-banked from being re-banked, as discussed in TFA. Oh, and that this was a journalistic outlet that was de-banked; possibly not an AML case based on the UK’s recent targeting of activists.
> that's the only story that will drive traffic to an otherwise unknown outlet
Naked Capitalism (the blog where this is published) has been around since before the GFC and is actually quite well-known among those who read, especially for its coverage of financial shenanigans. The economist Michael Hudson often comments there, and they sometimes republish his work. They are highly critical of the hyperfinancialization that’s taken over the economy, but despite this bias they often have a clearer view of what’s happening than the subservient and often manipulative financial press.
Why shouldn't they get an explanation?
For the same reason you don't tell spammers you blocked them
> Because you've tripped an AML flag
So now that I randomly tripped some "flag" of some obscure algorithm, my innocence doesn't matter anymore and actions taken against me (without compensation) are automatically justified?
We should be ok with that just because this is how it works?
Technofeudalism and inverted totalitarianism.. no rights, only privileges that can be rug pulled at any time without due process.
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These cases sound closer to sanctions than AML but in either case there needs to be due process.
Unknown to you perhaps.