Personal Finance

Bank is closing my account for no reason

  • Last Updated:
  • Oct 18th, 2020 8:53 pm
[OP]
Newbie
Oct 14, 2020
1 posts
1 upvote

Bank is closing my account for no reason

i have tangerine bank account which consist of checking and saving account a Mastercard and line of credit
i have money in both checking and saving account i never paid late on my credit card i never had nsf fee but
tangerine bank sent a letter they will be closing my account they gave no reason
why are they doing this has this happen to anyone before.
78 replies
Sr. Member
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May 18, 2019
933 posts
508 upvotes
Do you deposit a lot of cash? Also are they closing all of your accounts? Have you tried contacting them?
Deal Addict
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Jan 16, 2007
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There is always a reason, but it doesn't mean they will tell you what it is and the reason to terminate their relationship with you (if it's everything) may not be the same as others.
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Deal Addict
Jun 11, 2016
2585 posts
3608 upvotes
Banks dont close accounts for no reason.

For example, you might be a stellar Tangerine customer, but having either too much debt or bad credit could be a factor in them closing your accounts.
Best just call them.

Cheers, KH
Jr. Member
Apr 25, 2020
196 posts
61 upvotes
Try to contact them first. There must be a reason why. Haven't experienced this before though but it's only them who could give you the right answer :)
Deal Guru
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Jan 9, 2011
12560 posts
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Vancouver
MoF125 wrote: i have tangerine bank account which consist of checking and saving account a Mastercard and line of credit
i have money in both checking and saving account i never paid late on my credit card i never had nsf fee but
tangerine bank sent a letter they will be closing my account they gave no reason
why are they doing this has this happen to anyone before.
Have you ever wired money to a relative who was sitting in the same Karachi restaurant two tables away from a known terrorist's second cousin's hairdresser?
Deal Fanatic
Jan 21, 2018
5594 posts
5784 upvotes
Vancouver
There are many previous threads in this forum with people complaining about the same thing with other Canadian banks. The general message is that banks will occasionally do this for reasons that are mysterious to the customer, and they will neither explain nor reconsider. Likely some flunky in the back office has decided that your business is not worthwhile to them, or some transaction(s) on your account are considered suspicious, or there is some concern about your credit rating by their method of calculation (if you have credit card or chequing account). Banks do not have a very good track record of being accurate with such things - their reasoning often seems laughable and way off base if customers ever find out what was behind it. For example my 90-year-old mother got a call from HSBC, where she has been a Premier customer for 30 years, to ask about the suspicious transaction when she moved $50K back from RBC after moving it from HSBC to RBC to take advantage of an interest rate promo 6 months earlier.

Don't waste your time worrying about it, just move on. Tangerine's loss.
Deal Addict
Jan 2, 2015
1633 posts
638 upvotes
Toronto, ON
I don't know if calling the bank will help. When people get their accounts closed, the bank becomes closed-mouthed.

Banks usually close accounts due to suspected fraud (by the account holder) or not following the banking agreement, such as using a personal account as a business account. When people ask this question, they usually don't answer questions such as "did you use that account to buy Bitcoin?" or stuff like that.
Deal Fanatic
Aug 5, 2006
6872 posts
3649 upvotes
Global Village
KravenHead wrote: Banks dont close accounts for no reason.

For example, you might be a stellar Tangerine customer, but having either too much debt or bad credit could be a factor in them closing your accounts.
Best just call them.

Cheers, KH
Say your credit score has dropped this year but you haven't been late or delinquent with any Tangerine products. How would Tangerine know? Do they check your credit score automatically every certain # of months if you're a client?
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Deal Addict
Feb 17, 2017
1261 posts
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Calgary
scoper wrote: Say your credit score has dropped this year but you haven't been late or delinquent with any Tangerine products. How would Tangerine know? Do they check your credit score automatically every certain # of months if you're a client?
Most banks do a soft pull every month.
Member
Jan 24, 2004
495 posts
84 upvotes
You'll need to contact them to know why they cancelled. All of us here can only speculate..

Also, you'll want to know if the account was frozen so you can get back your money. Sucks you'll lose a credit card and LOC though..
Deal Fanatic
Apr 16, 2007
8100 posts
3406 upvotes
Financial District B…
There's is ALWAYS a reason and they are not obligated to tell you or explain why.
Suspicious deposits, transactions, etransfers, all could be reasons to cease your banking relationship.
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Deal Expert
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Aug 18, 2005
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mikeymike1 wrote: There's is ALWAYS a reason and they are not obligated to tell you or explain why.
Suspicious deposits, transactions, etransfers, all could be reasons to cease your banking relationship.
True enough. Similarly, you could choose not to do business with them and close your accounts, and you're not obligated to give them a reason.
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Deal Fanatic
Apr 16, 2007
8100 posts
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Financial District B…
Jucius Maximus wrote: True enough. Similarly, you could choose not to do business with them and close your accounts, and you're not obligated to give them a reason.
Of course.... but he may find he may be is similar situations with other banks and FI's if his banking transactions/behaviours are the same from the one that ceased doing business with him.
He is doing something to cause the closure. He will have to figure that out himself.

Moreover, why is it that people with these kinds of thread starts are always new forum ID's with 1 or 2 posts? What's their other ID on here?
OP doesn't need to hide their name, as soon as his bank acct was closed his full real name and entire profile is transferred to a list
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Moderator
User avatar
Mar 23, 2004
45849 posts
11689 upvotes
Markham
zeroace wrote: You'll need to contact them to know why they cancelled. All of us here can only speculate..

Also, you'll want to know if the account was frozen so you can get back your money. Sucks you'll lose a credit card and LOC though..
I doubt they will tell him the *actual* reason. And even if they tell him the actual reason, they wont reinstate the account anyway. As @Scote64 said, just get back the money, and move on.

Pretty sure they will send back his money without him asking.
Member
Jan 24, 2004
495 posts
84 upvotes
angel_wing0 wrote: I doubt they will tell him the *actual* reason. And even if they tell him the actual reason, they wont reinstate the account anyway. As @Scote64 said, just get back the money, and move on.

Pretty sure they will send back his money without him asking.
It's still better to call them and ask than coming to us and having us speculate why...

You're right that he should just move on. Trying to fight it is very pointless. Especially when there' many other options available.
Deal Fanatic
Dec 20, 2018
5826 posts
4883 upvotes
mikeymike1 wrote: Of course.... but he may find he may be is similar situations with other banks and FI's if his banking transactions/behaviours are the same from the one that ceased doing business with him.
He is doing something to cause the closure. He will have to figure that out himself.

Moreover, why is it that people with these kinds of thread starts are always new forum ID's with 1 or 2 posts? What's their other ID on here?
OP doesn't need to hide their name, as soon as his bank acct was closed his full real name and entire profile is transferred to a list
Believe it or not, majority of people don't have account on here or even browse RFD

They do a google search and results from RFD come up and then they register and post/ask. It's common in other forums for other matters
Sr. Member
Nov 6, 2015
990 posts
590 upvotes
Guelph, ON
zeroace wrote: It's still better to call them and ask than coming to us and having us speculate why...

You're right that he should just move on. Trying to fight it is very pointless. Especially when there' many other options available.
No, actually this is one of those rare occasions when posting here will get better answers then asking the bank. As many have stated, the bank won't give him the real reason, but at least here he'll find out this is standard behaviour and unfortunately not much he can do about it.

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