Anecdotally Chase has taken up to 30 days to give people access to their funds.For those cases of banks who closed the accounts of customers--for how long did the customers lose access to their funds? Presumably the customers were able to receive their funds promptly and would have been able to open an account elsewhere. Yes funds were inaccessible for some time--but I am not certain it is comparable.
For a more documented number, Wells Fargo reportedly froze assets for an average of 2 weeks when they were fined $3.7bn at the end of 2022: https://www.consumerfinance.gov/about-u ... -accounts/
Sure the banks may have to contend with Reg CC, but they can hide behind KYC and AML requirements to openly deny your access to funds if you are unfortunate enough to be a false positive on one of the detection algorithms. (at least until regulators step in)The bank froze more than 1 million consumer accounts based on a faulty automated filter’s determination that there may have been a fraudulent deposit, even when it could have taken other actions that would have not harmed customers. Customers affected by these account freezes were unable to access any of their money in accounts at the bank for an average of at least two weeks.
Just because banks have regulations that say they can't create implement the same 16 business day holds that Fidelity has been deploying here doesn't mean you are in the clear from all issues that could prevent you from accessing your money. The banks can create problems in different but equally catastrophic ways in response to the same stimulus of wide-scale fraud.
Statistics: Posted by SpaethCo — Fri Oct 11, 2024 12:01 am — Replies 665 — Views 39117