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Bank closed personal account
 

I sell on eBay and Amazon. Our deposits to bank account is usually around 150K deposits for a month from sales on eBay and Amazon.

My bank account is Personal checking not a business account. The bank is a small community bank not a major bank tho. Had the account since 7 yrs ago and never ever had problems.

They can clearly see the money is coming from PP and Amazon. Today, I got a letter in the mail and they decided to close my account. The account has over 300k in it.

I pay my taxes and I don't know why they would do that?
The only thing I could think is, sometimes I pay the wholeseller cash in order to get extra 10% discount so I take sometimes cash out and the bank might be worry on this but they can ask me. I don't understand why they would close for such as "good client"

What do you think guys and suggest?

Re: Very Strange and rare problem. Anyone had this?
 

Suggest you ask the bank, and why didn't you have the account as a business?

Re: Very Strange and rare problem. Anyone had this?
 

My 1st thought is that the bank found that a $150k deposit per month doesn't look as a ''Personal" actvity. The best thing to do so far is to go to your branch, and tak to them and see how can this be resolved.

Re: Very Strange and rare problem. Anyone had this?
 

You can't run $150k per month through a personal account with mismatched names. The bank probably noticed the names did not match, saw the cash withdrawals and didn't know what to make of it, but decided they wanted nothing to do with it.

To do that type of volume requires a business account, with the name of the business matching what PayPal and Amazon has on file.

It makes no difference if the bank is a local community bank, or one of the largest banks. Any account doing that type of volume is going to get looked at.

Re: Very Strange and rare problem. Anyone had this?
 

150k is an unusual amount to come in every week for personal acc. Before you go to bank, talk to an accountant and tell your accountant the whole story..Do you pay Tax as personal or business seller? You don't want bank to raise a flag, my friend. Talk to an accountant and if necessary, take your banking else where....

Good Luck

Re: Very Strange and rare problem. Anyone had this?
 

maybe the bank decided they don't want to allow anymore 3rd party deposits that might be one reason..I only say that because I had an account I was using for years and one day they closed it and said they were not going to allow anymore 3rd party deposits and closed my account.

Re: Very Strange and rare problem. Anyone had this?
 

The name on PP and Amazon is real! Its not mismatch or anything. The reason I never got a chance to change to business account was my eBay sale started very low and raised very year to this high volume sale!

The bank know me and my business on eBay and Amazon. What do you think?

Re: Very Strange and rare problem. Anyone had this?
 

Not strange and not rare. You ran 150k through a bank as personal in a mismatched account.

All banks are suppose to watch for activity like this.

Re: Very Strange and rare problem. Anyone had this?
 

Instead of asking us what we think, call or go into your bank and talk them, there's nothing we can do to help.

Re: Bank closed personal account
 

Also does not help it is a small bank. If something backfired on them, they would have major issues. They are not a "to big to fail" type of bank.

Hopefully you at least get your money.

Re: Very Strange and rare problem. Anyone had this?
 

Other users have had this happen to them. It is noted on the forum. Few banks will tolerate personal accounts being used for business.

Your business practises need an overhaul.

Your bank's Head Office may have made the choice to close the accounts.

You said you were bringing in x dollars monthly. That implied more than one month.

Yet, you did not change your banking details..... see where I am coming from?
The local bank may know you. But the details of your business tripped flags.

Go to the bank, in person. Make it an offical call. Find out what they are going to do.

This is now between you and your bank.

Sort it very quickly.

Good Luck

:mod:

Re: Very Strange and rare problem. Anyone had this?
 

I apologize, I misunderstood. This changes it a bit. Greenie responded that it may have been someone at the home office that made this decision. That sounds reasonable.

If it were me, I would make an appointment to speak with an account rep at the local branch. Explain this started as an idea and you did not know when it started what the volume was going to be. Tell them you would like to stay with them and switch over to a business account.

Whether or not they will do that, I don't know, but if you know people at the local branch, they might be able to talk to someone at the home office and get it approved.

Re: Bank closed personal account
 

Running that kind of Money through a Personal account, is BEGGING for trouble, unless your the CEO of JP Morgan,,,What the hell is wrong with you?,,,God only knows what the bank is thinking,, A Business account, that's what you need,,,then you can run Twice that amount (And MORE) with NO Issues

Re: Bank closed personal account
 

There are federal laws that the bank has to abide by one being not allowing a personal account being used for business

Re: Bank closed personal account
 

Would advise opening multiple accounts at different larger banking institutions. Less hassle with these kind of things. While I like supporting community banks when dealing with things like this it can be a hassle.

I will agree though. If you are running that kind of cash through accounts you should have multiple business accounts not personal accounts.

Re: Bank closed personal account
 

1. Contact your bank and speak to them for solution.

2. Get business accounts going.

3. You must not repeat this activity in personal account

Re: Bank closed personal account
 

Mostly what mm78 said, exactly! Nobody has a clue what has happened. Only the bank knows and that's where to go with questions 1st. Good luck.

Re: Bank closed personal account
 

I wouldn't say nobody knows what happened. It is quite clear a very large amount of money more than most people in the US make in a year was being run through multiple personal accounts.

Not saying don't have personal bank accounts for stealth. But you have to know WTF you are doing. If you are legit as you claim. No reason not to have Business accounts and spread them out over multiple banks.

Even with just personal accounts. Failure to spread things out is pure carelessness.

Re: Very Strange and rare problem. Anyone had this?
 

exactly one word = RISK

Re: Bank closed personal account
 

Banks are knowed to close personal accounts that run alot of money through them. The reasons are they are losing out on the fees from a business account and also they are risking alot in terms of liability.

Re: Very Strange and rare problem. Anyone had this?
 

I understand. It is by law that if anyone makes withdrawels for more then nine thousad in one month the bank has to report the activity (for cautious reasons) maybe b.c. the volume was so high in a personal account they got nervous and justdecided to shut it down on you.

Re: Very Strange and rare problem. Anyone had this?
 

No,,,That is slightly incorrect,,,,,,,,,For Personal accounts banks are REQUIRED by LAW, to file what is known as a SAR report (Suspicious Activity Report) for EVERY transaction (Deposit OR Withdrawal) $10,000 and above. This is more than likely the reason that the OP's Account was shut down,,(Large Daily Paypal Deposits)

Re: Bank closed personal account
 

Actually, slapped, it is a little sneakier than that.

The report could be filed at $5000.

OCC: BSA and Related Regulations

Transactions of $10,000 may have to comply with the Bank Secrecy Act
Bank Secrecy Act

There is also a chance of action under the Currency Transaction Report.

Currency transaction report - Wikipedia, the free encyclopedia

Given the figures quoted by the OP, his banking has resulted in the bank covering itself under US Law.

Hope that helps

:juggle:

Re: Bank closed personal account
 

Wow a lot of people on this forum don,t even go near running that much money in sales on monthly basis but it is Sad to hear that they took action agains you , I hope all goes well with the talking at your branch but as other ,s say the best choice with that much money is to go the Business account route. Good luck

Re: Bank closed personal account
 

This also happened to me, much lower volume 5K a week, I just switched over to a business account and all was well. (so far at least, its been 6 months)

Re: Bank closed personal account
 

Do not quote me on this but checks/or ACH deposits are not required to be reported. Paypal/Amazon are ACH deposits and are traceable and are not required to be reported.
Its only when you have 10k cash that its to be reported.

Re: Bank closed personal account
 

Preferable to avoid such comments.

Any bank may report a transaction.

Always keep that in mind.

:peace:

Re: Bank closed personal account
 

ABSOLUTLY incorrect,,,,it is for ANY Transaction, click on the Link that Greenie was kind enough to provide Above,,where I was correctly informed that the Law was for Transactions of $5000 and Above as opposed to the $10,000, that I originally thought the threshold was

Re: Very Strange and rare problem. Anyone had this?
 

You are right about SAR reports. But it does not even have to be for Going over 10k. If a bank detects anything that seems suspicious they have to file this. Depositing $5k every day instead of 10k on one day. Could be considered Structuring which is US law and you can be prosecuted for. I am sure having too many personal accounts falls under the same thing.

Re: Bank closed personal account
 

Wise move - of course, you must report taxes for the business to be nicely setup.