It has been just revealed the fact that the US banks are freezing accounts and they are halting withdrawals. Check out the latest reports about this below.
US banks freeze accounts, halting withdrawals
A recent report reveals that US banks are closing customers’ accounts and restricting withdrawals without prior notice.
This disturbing trend is affecting more and more people who suddenly find themselves unable to access their checking and savings accounts, as reported by CBS Los Angeles.
For instance, Elad Nehorai received a concerning notification when he tried to log into his Bank of America account. He immediately went to a branch in West LA, only to be informed that his account had been closed and he was no longer able to access his hard-earned savings.
“Bank of America told me it was shut down. They refused to give me an explanation. They told me I would get my money after it was resolved.
All of a sudden I find out I’m broke. I can’t feed my family and I can’t pay any expenses.”
Banks are typically shutting down accounts over concerns of suspicious behavior.
It has been reported by the Banking Policy Institute that only 4% of Suspicious Activity Reports (SARs) submitted by banks to law enforcement result in follow-up action, with only a small portion leading to arrests and convictions. In 2014, banks submitted approximately 830,000 SARs.
However, this number has since risen significantly, with around 1.4 million SARs reported in 2021.
Recently, Nehorai revealed that Bank of America, which manages $1.4 trillion in assets, informed him that it would take up to 20 days to review his account.
“It’s another one of those situations where you just – how do you deal with this massive bank, this massive power that you have no control over? I was shocked to find out that this is actually relatively common.”
