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About 10 years ago a startup I co-founded had about $3M in a Chase account. We received a notification that they were closing our account within 30 days. We wer

About 10 years ago a startup I co-founded had about $3M in a Chase account. We received a notification that they were closing our account within 30 days. We weren't able to get any information but I assume this was a KYC false positive. The only thing I can think of is that we had some investors from the Middle East. We had no problem withdrawing our funds but since then, I've opened another business account and a personal travel credit card with Chase, both of which were shut down within weeks, so apparently I'm personally flagged for life.

jxnlco 2y ago
holy shit. They never gave me an answer but the last thing the KYC team did (outside of executive branch) was just confirm a 25k invoice =_=
throwaway2037 2y ago
> I've opened another business account and a personal travel credit card with Chase, both of which were shut down within weeks This pattern repeats itself frequently here on HN. My questions / advice are always the same. Did you send written letters to Chase to ask for an explanation? In parallel, CC the same letter (yeah, by snail mail, and tell Chase you are doing it) to your local and national banking regulators. I cannot believe you will get zero response. What exactly is a "personal travel credit card"? I never heard that term before.
- choilive 2y ago
  Yep, they definitely wont give a reason. They just say that the risk/compliance team has made the determination and it is final. shrug
- developerDan 2y ago
  In regards to your question - Credit cards typically come in two flavors: cash back and travel. Cash back is self explanatory, travel cards reward points instead (cash equivalent of 1 point is $0.01 at least for the US). These points can be transferred to other accounts to take advantage of things like reward seats on airlines.
- benzible 2y ago
  > I cannot believe you will get zero response. Believe it. Our account seems to have been closed due to a KYC issue, and the bank, by law, cannot tell you any details. See this comment: https://news.ycombinator.com/item?id=41333832 https://news.ycombinator.com/item?id=41333832 And, yes: we tried every avenue to get more information, including having an attorney write a letter. As you can imagine, this was quite concerning for our company. We wanted to understand if there was some piece of information that might lead other banks to close our account. As I mentioned in another comment, none of our other accounts were closed - only this Chase account. I tried again to get more information when the Chase accounts I opened, for another business and subsequently a personal credit card, were closed, although by that point, the only logical explanation was my connection to the business bank account that had previously been closed and I didn't have much hope that I'd get an answer. Also: to be blunt I'm not sure what gave you the impression that I'm looking for advice. I was relating an old anecdote that was relevant to the OP, not asking for help. I just stay away from Chase. At this point I know that I'm blacklisted with them. I have no issue with other banks. > What exactly is a "personal travel credit card"? I never heard that term before. "Personal" as in: this was a credit card for me personally, not a business credit card. My point is that I seem to be blacklisted by Chase even for _personal_ accounts unconnected to the business whose account the closed. I assume you've heard of a "travel credit card", but if not: https://www.nerdwallet.com/best/credit-cards/travel https://www.nerdwallet.com/best/credit-cards/travel
benzible 2y ago
Just for posterity, we received this on 6/28/2013. Looks like they actually gave us 60 days. > Dear [redacted] Inc. > A review of our records indicates that we are unable to retain your above-referenced account(s) (the "Accounts") at JPMorgan Chase Bank, N.A. (the "Bank"). > The terms and conditions governing the Accounts ("Account Rules") provide that the Bank may close your Accounts at any time. Although the Account Rules do not require the Bank to provide you with advance notice of the termination of the Accounts, as a courtesy, please be advised that the Accounts will be terminated and closed after the close of business on 08/26/2013. Any items presented for payment on the Accounts and not paid prior to termination will be returned unpaid. If the Accounts were covered by Overdraft Protection, as that term is defined in the Account Rules, such Overdraft Protection will terminate with respect to the Accounts on the Termination Date. > Please do not deposit checks to the Accounts within five (5) business days of the Termination Date or any earlier date that you close the Accounts. Please arrange to cause any Automated Clearing House or ACH deposits or transfers to the Accounts to be terminated prior to closure. Provided that no checks have been deposited to your Accounts within the five (5) business day period before the Accounts are closed and no deposits of any kind have been made to your Accounts within a two (2) business day period before such closure, upon closure the Bank will, at your risk, mail to you at the address set forth above a check for the balance of your Accounts, less any service charges assessed to the Accounts. If deposits are made to the Accounts prior to closure inconsistent with the foregoing, the Bank will mail your check as soon as reasonably possible following closure of the Accounts. If you wish to make other arrangements for receipt of any funds remaining in the Accounts or if you have questions, please contact 1-877-691-8086 OPTION-NUMBER-1. > Notwithstanding the Bank's intent to allow the Accounts to remain open until as set forth above, the Bank reserves the right to close the Accounts earlier, at any time, for any reason, without notice. > Sincerely, > Chase Operating Loss Prevention
- Bluestein 2y ago
  > Loss Prevention For "prevention," seems like a great way to lose customers ...
- wcarss 2y ago
  did you retype this? Assuming not, I just noticed they made the "if" -> "fi" typo twice and in two different ways -- interesting that what amounts to boilerplate can have that stuff get through.
mijoharas 2y ago
> I've opened another business account and a personal travel credit card with Chase Out of interest, why would you do that after your previous experience with them?
- benzible 2y ago
  The Chase Sapphire card was rated as the best travel card. I had no idea that I had been flagged personally at the time I applied. I can't remember why I chose them for a business account. At the time I was working under the assumption that this was a "lightning strike" type of event which could have happened with any bank. I'm more inclined to believe it's Chase-specific now, or at least more likely with Chase, esp. based on other anecdotes in this thread! I was also inclined to believe that most large banks are terrible. For example, I have experienced extremely poor customer service with B of A, and Wells Fargo is a very sleazy company. However, my experience with Chase is by far the worst I've personally experienced. I'm a very happy customer of Mercury Bank for my current business, FWIW.
  - throwaway2037 2y ago
    For all of the complaining about banking majors in the US here on HN, why don't more people bank _intentionally_ with credit unions, or at least local banks? When you open your account, make sure that the branch manager knows who you are and what your pattern of business will be. Open your account wearing good clothes (suit, if possible), and share a business card with your account rep and branch manager. Think old school, like it is the 1950s, and it will be much harder for them to terminate your accounts.
    - developerDan 2y ago
      > why don't more people bank _intentionally_ with credit unions, or at least local banks Simply put, national access to those banks. Traveling business owners who deal with cash will have access to physical banking locations all over the country. You cannot deposit cash in San Francisco for a bank that is local to only NYC.
choilive 2y ago
Had a similar experience at a startup I co-founded. Chase's risk or compliance team suddenly decided to close our accounts. Possibly because we were in the crypto space.
- hkgjjgjfjfjfjf 2y ago
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jxnlco 2y ago

holy shit. They never gave me an answer but the last thing the KYC team did (outside of executive branch) was just confirm a 25k invoice =_=

throwaway2037 2y ago

> I've opened another business account and a personal travel credit card with Chase, both of which were shut down within weeks This pattern repeats itself frequently here on HN. My questions / advice are always the same. Did you send written letters to Chase to ask for an explanation? In parallel, CC the same letter (yeah, by snail mail, and tell Chase you are doing it) to your local and national banking regulators. I cannot believe you will get zero response. What exactly is a "personal travel credit card"? I never heard that term before.

choilive 2y ago
Yep, they definitely wont give a reason. They just say that the risk/compliance team has made the determination and it is final. shrug
developerDan 2y ago
In regards to your question - Credit cards typically come in two flavors: cash back and travel. Cash back is self explanatory, travel cards reward points instead (cash equivalent of 1 point is $0.01 at least for the US). These points can be transferred to other accounts to take advantage of things like reward seats on airlines.
benzible 2y ago
> I cannot believe you will get zero response. Believe it. Our account seems to have been closed due to a KYC issue, and the bank, by law, cannot tell you any details. See this comment: https://news.ycombinator.com/item?id=41333832 https://news.ycombinator.com/item?id=41333832 And, yes: we tried every avenue to get more information, including having an attorney write a letter. As you can imagine, this was quite concerning for our company. We wanted to understand if there was some piece of information that might lead other banks to close our account. As I mentioned in another comment, none of our other accounts were closed - only this Chase account. I tried again to get more information when the Chase accounts I opened, for another business and subsequently a personal credit card, were closed, although by that point, the only logical explanation was my connection to the business bank account that had previously been closed and I didn't have much hope that I'd get an answer. Also: to be blunt I'm not sure what gave you the impression that I'm looking for advice. I was relating an old anecdote that was relevant to the OP, not asking for help. I just stay away from Chase. At this point I know that I'm blacklisted with them. I have no issue with other banks. > What exactly is a "personal travel credit card"? I never heard that term before. "Personal" as in: this was a credit card for me personally, not a business credit card. My point is that I seem to be blacklisted by Chase even for _personal_ accounts unconnected to the business whose account the closed. I assume you've heard of a "travel credit card", but if not: https://www.nerdwallet.com/best/credit-cards/travel https://www.nerdwallet.com/best/credit-cards/travel

benzible 2y ago

Just for posterity, we received this on 6/28/2013. Looks like they actually gave us 60 days. > Dear [redacted] Inc. > A review of our records indicates that we are unable to retain your above-referenced account(s) (the "Accounts") at JPMorgan Chase Bank, N.A. (the "Bank"). > The terms and conditions governing the Accounts ("Account Rules") provide that the Bank may close your Accounts at any time. Although the Account Rules do not require the Bank to provide you with advance notice of the termination of the Accounts, as a courtesy, please be advised that the Accounts will be terminated and closed after the close of business on 08/26/2013. Any items presented for payment on the Accounts and not paid prior to termination will be returned unpaid. If the Accounts were covered by Overdraft Protection, as that term is defined in the Account Rules, such Overdraft Protection will terminate with respect to the Accounts on the Termination Date. > Please do not deposit checks to the Accounts within five (5) business days of the Termination Date or any earlier date that you close the Accounts. Please arrange to cause any Automated Clearing House or ACH deposits or transfers to the Accounts to be terminated prior to closure. Provided that no checks have been deposited to your Accounts within the five (5) business day period before the Accounts are closed and no deposits of any kind have been made to your Accounts within a two (2) business day period before such closure, upon closure the Bank will, at your risk, mail to you at the address set forth above a check for the balance of your Accounts, less any service charges assessed to the Accounts. If deposits are made to the Accounts prior to closure inconsistent with the foregoing, the Bank will mail your check as soon as reasonably possible following closure of the Accounts. If you wish to make other arrangements for receipt of any funds remaining in the Accounts or if you have questions, please contact 1-877-691-8086 OPTION-NUMBER-1. > Notwithstanding the Bank's intent to allow the Accounts to remain open until as set forth above, the Bank reserves the right to close the Accounts earlier, at any time, for any reason, without notice. > Sincerely, > Chase Operating Loss Prevention

Bluestein 2y ago
> Loss Prevention For "prevention," seems like a great way to lose customers ...
wcarss 2y ago
did you retype this? Assuming not, I just noticed they made the "if" -> "fi" typo twice and in two different ways -- interesting that what amounts to boilerplate can have that stuff get through.

mijoharas 2y ago

> I've opened another business account and a personal travel credit card with Chase Out of interest, why would you do that after your previous experience with them?

benzible 2y ago
The Chase Sapphire card was rated as the best travel card. I had no idea that I had been flagged personally at the time I applied. I can't remember why I chose them for a business account. At the time I was working under the assumption that this was a "lightning strike" type of event which could have happened with any bank. I'm more inclined to believe it's Chase-specific now, or at least more likely with Chase, esp. based on other anecdotes in this thread! I was also inclined to believe that most large banks are terrible. For example, I have experienced extremely poor customer service with B of A, and Wells Fargo is a very sleazy company. However, my experience with Chase is by far the worst I've personally experienced. I'm a very happy customer of Mercury Bank for my current business, FWIW.
- throwaway2037 2y ago
  For all of the complaining about banking majors in the US here on HN, why don't more people bank _intentionally_ with credit unions, or at least local banks? When you open your account, make sure that the branch manager knows who you are and what your pattern of business will be. Open your account wearing good clothes (suit, if possible), and share a business card with your account rep and branch manager. Think old school, like it is the 1950s, and it will be much harder for them to terminate your accounts.
  - developerDan 2y ago
    > why don't more people bank _intentionally_ with credit unions, or at least local banks Simply put, national access to those banks. Traveling business owners who deal with cash will have access to physical banking locations all over the country. You cannot deposit cash in San Francisco for a bank that is local to only NYC.

choilive 2y ago

Had a similar experience at a startup I co-founded. Chase's risk or compliance team suddenly decided to close our accounts. Possibly because we were in the crypto space.

hkgjjgjfjfjfjf 2y ago
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