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I'm very far from dealing with 500k personal banking transactions, but my immediate thought is that if you're doing so you're probably making mistakes. If it's

I'm very far from dealing with 500k personal banking transactions, but my immediate thought is that if you're doing so you're probably making mistakes. If it's revenue from sale of a company or similar, move it through escrow with your attorney. If it's a legal settlement, do the same. If you don't have an attorney but are dealing with hundreds of thousands of dollars, get an attorney. If it's income from trading or investing it should likely be a transaction from a recognized brokerage which shouldn't raise red flags - and if it's a private investment, see above about an attorney. And of course if it's business transactions, do it with a business account.

raincom 3y ago
I just gave an example based on what I read on reddit, as I never deposited $500K in my life. I have no problems with banks' closing accounts, as I have accounts with a couple of local credit unions, who are nice to me. What caused the closure? A legitimate transaction that they find suspicious. Conjunction of two issues--not sending the funds back and closing the account without releasing funds to the customer--is real 'thievery' in my opinion. Since big banks are NOT interested in resolving disputes about funds by lying to customers, better file a complaint with CFPB right away with many details and documents.
- pc86 3y ago
  Perhaps we should stop spreading second-hand anecdotes from Reddit as authoritative examples of what can/has/should happen.
mindslight 3y ago
One should get an attorney if they desire legal representation, period. Otherwise it's quite perverse to be contributing to one of the main guilds facilitating this cesspool of overregulation, just in the hopes that their social status is going to make a bank think twice. And also attorneys aren't immune from this. In fact, one reason to actually get an attorney is that you want to launder some money. Also, business accounts aren't immune from this dynamic, as per the article. It seems like you're just grasping at bureaucratic straws here in search of the just world theory. But no, the whole thing is really an accountable terrible dynamic that will continue to get worse and worse until it affects enough people that the laws change.
- zlg_codes 3y ago
  Wait hold up, lawyers can help you avoid the law as well? I suspect the bar would not allow that.
  - mindslight 3y ago
    You obviously can't cold call an attorney and ask for help laundering money. But if you find a money laundering operation through the proper channels, then it will likely involve a law firm somewhere that's facilitating making it properly legible to the system - setting up less-than-truthful companies, generating copious fraudulent documentation, etc. If anything attorneys' trust accounts should be receiving more scrutiny rather than less - using your account to handle money held in trust for someone else is generally something that sets off compliance department alarm bells, and for good reason (well, as good of a reason as there can be in the context of this topic).
- raincom 3y ago
  Lawyers are not of much help when it comes to reopening already-closed accounts. Most of the time, banks will send a cashier check for whatever money left, if they close accounts abruptly. Sometimes, they give a month to move funds elsewhere. When a bank closes an account for that last check which they find suspicious--subsequently cleared by the payee bank, that's when banks give a run around. File a complaint with CFPB without any lawyer, unless of course that amount is substantial.
  - mindslight 3y ago
    I agree - you don't need an attorney to file a complaint with the CFPB, and you should file a complaint with the CFPB ASAP when a bank starts pulling this crap. But the comment I was responding to was saying you should have an attorney to handle any large transaction, which I disagree with.
  - fencepost 3y ago
    I wouldn't expect them to help with reopening, but if a bank is investigating an unexpected large deposit and determines that "Oh, it's coming from a law firm's escrow account" it gives at least one obvious possible explanation - and may also indicate to investigators that the account holder is someone with legal representation so don't be sloppy.
fastaguy88 3y ago
If you are buying a house with cash, you are likely to be transferring $500K+. I do not think an attorney is necessary for the transfer.
- BobaFloutist 3y ago
  When you buy a house an attorney is likely involved, but, in any case, you're going to be transferring the 500k through escrow, not making a direct deposit or wire transfer.
  - fastaguy88 3y ago
    I made a wire transfer to the escrow agent.

raincom 3y ago

I just gave an example based on what I read on reddit, as I never deposited $500K in my life. I have no problems with banks' closing accounts, as I have accounts with a couple of local credit unions, who are nice to me. What caused the closure? A legitimate transaction that they find suspicious. Conjunction of two issues--not sending the funds back and closing the account without releasing funds to the customer--is real 'thievery' in my opinion. Since big banks are NOT interested in resolving disputes about funds by lying to customers, better file a complaint with CFPB right away with many details and documents.

pc86 3y ago
Perhaps we should stop spreading second-hand anecdotes from Reddit as authoritative examples of what can/has/should happen.

mindslight 3y ago

One should get an attorney if they desire legal representation, period. Otherwise it's quite perverse to be contributing to one of the main guilds facilitating this cesspool of overregulation, just in the hopes that their social status is going to make a bank think twice. And also attorneys aren't immune from this. In fact, one reason to actually get an attorney is that you want to launder some money. Also, business accounts aren't immune from this dynamic, as per the article. It seems like you're just grasping at bureaucratic straws here in search of the just world theory. But no, the whole thing is really an accountable terrible dynamic that will continue to get worse and worse until it affects enough people that the laws change.

zlg_codes 3y ago
Wait hold up, lawyers can help you avoid the law as well? I suspect the bar would not allow that.
- mindslight 3y ago
  You obviously can't cold call an attorney and ask for help laundering money. But if you find a money laundering operation through the proper channels, then it will likely involve a law firm somewhere that's facilitating making it properly legible to the system - setting up less-than-truthful companies, generating copious fraudulent documentation, etc. If anything attorneys' trust accounts should be receiving more scrutiny rather than less - using your account to handle money held in trust for someone else is generally something that sets off compliance department alarm bells, and for good reason (well, as good of a reason as there can be in the context of this topic).
raincom 3y ago
Lawyers are not of much help when it comes to reopening already-closed accounts. Most of the time, banks will send a cashier check for whatever money left, if they close accounts abruptly. Sometimes, they give a month to move funds elsewhere. When a bank closes an account for that last check which they find suspicious--subsequently cleared by the payee bank, that's when banks give a run around. File a complaint with CFPB without any lawyer, unless of course that amount is substantial.
- mindslight 3y ago
  I agree - you don't need an attorney to file a complaint with the CFPB, and you should file a complaint with the CFPB ASAP when a bank starts pulling this crap. But the comment I was responding to was saying you should have an attorney to handle any large transaction, which I disagree with.
- fencepost 3y ago
  I wouldn't expect them to help with reopening, but if a bank is investigating an unexpected large deposit and determines that "Oh, it's coming from a law firm's escrow account" it gives at least one obvious possible explanation - and may also indicate to investigators that the account holder is someone with legal representation so don't be sloppy.

fastaguy88 3y ago

If you are buying a house with cash, you are likely to be transferring $500K+. I do not think an attorney is necessary for the transfer.

BobaFloutist 3y ago
When you buy a house an attorney is likely involved, but, in any case, you're going to be transferring the 500k through escrow, not making a direct deposit or wire transfer.
- fastaguy88 3y ago
  I made a wire transfer to the escrow agent.