Bank Shutdown Data Points
Doing bigger things in the points and travel hobby can entail pushing harder. To earn more points and miles, certain hobbyists more aggressively spend. The other end here is that banks can decide they’re no longer interested in you as a customer. This has happened to me, and I imagine some of you, on a few occasions. As I’ve heard Troy Aikman often say, “it comes with the dinner.” While I’d like to avoid losing cards, I know I can come out ahead along the way to that conclusion. It’s natural for hobbyists to share bank shutdown data points as they hope to avoid such a demise. But I don’t overly focus on such DP’s for the following reasons.
That Ain’t Everything
Hobbyists swap information about what can lead to a shutdown, and these data points may very well contribute to that outcome. But for many who have been shut down, it’s just as much – maybe more – about what they don’t share as what they do.
I’m skeptical that anyone shut down truly shares everything. Out of guilt, embarrassment, or something else, certain hobbyists naturally omit. And even if someone wants to be an open book, no single forum is necessarily the appropriate place to share all. Consequently, we’re only hearing part of the story, and this can lead to false assumptions, rumors, and paranoia. What may realistically be a perfectly-acceptable behavior can morph into a mortal sin.
Apples and Oranges
The timing and nature of how we accomplish certain tasks can play a role in if one is shut down and another is not. What banks allow in one year, month, or week varies – and they’re not responsible for keeping us updated (more on that later). This can also vary by region. While we want to squint to make sense of bank shutdown data points, we erroneously commingle these variations and assume everyone is in the same situation. Data points immediately age and inevitably become obsolete.
We Don’t Know Anything
Let’s remember that the banks have all the information. They monitor our entire behavior profiles, decide what is acceptable, what’s not, and their exact shutdown formula. Banks generally do not tell us the specific reasons why we were shut down, and even in the rare case they do, the reasoning is not complete. I feel it’s naive for hobbyists to think that they have this stuff all figured out. We may have a general idea of what’s okay, until it isn’t.
Bad Actors
As Alfred reminds us in The Dark Knight, “Some men just want to watch the world burn.” I feel this applies today more than ever, within and beyond our shared hobby. We live in a time where an increasing many just want to create chaos.
And unfortunately, in our hobby, we face a deluge of unverifiable information. This often comes from questionable parties. Intentionally or unknowingly, individuals parrot this as fact, to the point where other entities irresponsibly post and point fingers elsewhere.
Rise above the mess, trust your own experiences, and build true, real relationships.
Bank Shutdown Data Points – Conclusion
Of course, I can’t ignore that the spirit of certain bank shutdown data points rings true. It’s safe to say certain behaviors are more acceptable than others. But we must not overrely on these DP’s. While I may see a certain value in specific pieces of information, my firsthand experiences will always come ahead of everything else. But I also foster relationships with individuals – face to face, preferably – to share experiences and build more confidence in certain moves. All those other data points floating around online fall significantly behind.
Again, this is just the way I reconcile things, and I can understand everybody has their own processes. The key is to have a process, a plan, for how you go about your hobby activities. I encourage you to determine the appropriate mix and weight of bank shutdown data points in your situation. Godspeed!
Years ago, I called Amex to let them know that I was going to spend some money on some household appliances as a courtesy so they wouldn’t deny the transaction. I still was well under my spending limit. The transaction went through fine. A few weeks later I received a call from what I guess was their audit department. They wanted me to fill out a form giving them permission for them to acquire my federal income tax records. I’m sure many of you might have experienced the same type of audit request. I refused and my account was immediately closed, no ifs ands or buts.
I liked the card so about a month later, I reapplied for the same card and was immediately approved (no bonus points). Seems like the right hand didn’t know what the left hand was doing. I still have the same card today and I’ve never received another request for my tax records.
Bill,
You’re correct – those requests are commonplace, but I can understand your natural inclination, as well. I’m glad you essentially got back to normal a month or so later!
All of my purchases are bona fide and I never engage in manufactured spending. But, it is not uncommon for me to have big-ticket purchases.
Years ago, I had the US Bank Altitude Reserve. Every week or two weeks, the bank would put a fraud lock on my card. I would have to call in to validate my charges. Because the Altitude Reserve was a “special” card, neither a regular phone agent or the regular fraud team could clear the fraud lock. Only a “special” fraud team — called the CAFE team — could clear it. So, invariably, you waited for the regular phone agent . . . to whom you had to explain about the CAFE team because they didn’t know about it . . . and they could only transfer you to the regular fraud team . . . and you waited for the next available regular fraud agent. Then, if you were lucky, the regular fraud team member even knew about the CAFE team . . . and then you got to wait for the next available CAFE fraud agent. All of this takes up to two or so hours.
But, wait. It gets better. The CAFE team was only open M-F during regular business hours. Having the card locked on weekends or when traveling in substantially different time zones made it a hassle. Each time, I validated all transactions at legitimate. Then, the CAFE fraud agent clears the lock. Please try your charge again. Locked again. The card became unusable. Eventually, the CAFE team called me and said that I was engaging in fraud and all of my US Bank accounts would be closed and all of my points would be forfeited. Immediately after that call, I liquidated my points to cash.
All of this in spite of a significant banking relationship with US Bank. High seven figures. The CAFE agent could see the level of assets that I had with US Bank. I asked him who was at greater risk, the bank or me? He didn’t care. No sense of relationship banking. Their loss. And, frankly, given what US Bank has been doing with its cards over the past year or so, I wouldn’t want their cards. A B-league bank that happens to be big.
I just got shut down by Citibank for transferring in $30,000 from CFG Bank. They said they could not verify that I was the owner of the CFG bank account and that it was closed due to fraud. I’ve never done any fraud, etc. extremely frustrating and bizarre.
Daniel,
Sorry to hear this! Give it time, and try again.
This actually happened 2 years ago with poppy bank so I waited some time and got approved in branch and again I was shut down. No idea why this is happening, I guess I am just blacklisted forever 🙁
Citibank is quick to freeze or shut down anyone. I have to point out to them that my payment was denied by their own banking department because they were slow to process my address change.