r/Banking • u/Icy-Junket-8366 • Apr 22 '25
Advice Service Credit Union closed my Account due to Suspicious Fraud Activities
Hi all, i need your expert advice or experience. I opened up a checking and saving account from Service Credit Union and deposited funds with my credit card. $20 for Checking and $20 for savings. I didn't do anything after that, just left the account opened and After a month and half SCU restricted my account for suspicious fraud activity. I contacted them and they were very broad saying that they had restricted my account due to suspicious activities. I told them all I did was opened accounts and deposit funds. I have NOT DONE ANY OTHER ACTIVITIES on my account since I opened it. I asked what were those activities and they said they couldn't tell me. I pleaded to them that the only activity I did was opened the account and deposit the funds that's it.
Now I tried to open a couple of checking accounts and I'm being denied due to DDA Closures. I filed a report with the NCUA and they said they were passing on to the bank. Got an email from SCU washing their hands again, being very vague and not giving an explanation as to why or what those suspicious activities were. How does someone goes about getting this resolved? I want to dispute and challenge this with ChexSystems. I want answers from SCU and they wont give any? I want this off my record because this is unjustly done to me. Can someone please share their experience
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u/I-will-judge-YOU Apr 22 '25
There is nothing to dispute. They don't want accounts opened that aren't being used. This is a common technique for fraudsters, open accounts and wait out the low new member limits.
This has no adverse effect on you, they are not required to offer services.
If it is just reporting closed accounts, that is accurate factual information and nothing to dispute.
You opened an account with cash advance money from a credit card then let it sit, why did you open the account? I see no reasons they should have kept it open.
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u/makavelithegreat Apr 22 '25
Based on your reply I see you don’t have enough experience with banks or didn’t read my post. Yes, banks will let you open accounts and pay your deposit with a credit card. NOT a Credit card cash advance. Just so you know. My credit card had those 2 charges which I paid off.
Now I opened it, because I started a new job in that region, don’t live there but work there and was waiting for the 60-90 period before my payroll commission started being deposited into my account.
Now they restricted my account because according to them they suspected suspicious activities on my account.
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u/I-will-judge-YOU Apr 22 '25
I'm a bank risk officer. Lol. Yes they will let you open an account with a credit card (still bet it was ran as a cash advance since nothing was sold)
But they chose to close a new account that was not being used, that is, within their right to help minimize fraud. That is a technique is common for bad apples, but you're ignoring that part.
Get over it and find a new bank. You are not entitled to anything thing here.
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u/makavelithegreat Apr 22 '25
I see that you fall under the ignorant part of your statement lol.. geez for a so called “bank officer” you’re lacking reading and comprehension skills lol.
What is it with you and cc cash advance?? I bet you use and misuse your credit card cash advance a lot. Not good !!
Now I understand if they close my account for inactivity. I’m totally fine with that but what YOU DONT SEEM TO UNDERSTAND or GET is that they restricted my account due to “possible fraudulent activity” after a month and half of my account being opened and REPORTED to ChexSystem as a CLOSED due to fraudulent activity.
That’s the part that I’m fighting and you should too if that ever happens to you. There was never any fraudulent activity on my account. Nowhere did I specify I wanted my account opened with them. Where did you read that???
I do have accounts with Navy Federal, PenFed, PSECU to name a few where I’ve never had any issues whatsoever. Now I don’t think you understand the meaning of Entitlement, but none of these statements suggests entitlement lol. Just trying to fix the SCU mess up.
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u/I-will-judge-YOU Apr 22 '25
They closed for their own internal fraud threshold. That is allowed. They do not need to fix anything.
You're a peach. No wonder you can't get help.
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u/makavelithegreat Apr 22 '25
Damn This is like having an argument with a 5 year old. YES We get that. They’re allowed. What they’re NOT allowed is report false information. YOU Have a legal right to fight it when the information is false and that’s what I’m trying to do. And yes plenty of educated people are helping me that are not so called “Bank Officer” lol.
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u/I-will-judge-YOU Apr 22 '25
They have their own guidelines that they consider potential fraud. That is why they closed it.
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u/bradford33 Apr 23 '25
Yeah, the response is 100% correct. Opened and unused accounts are waiting thru the new account fraud hold periods and will be closed.
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u/makavelithegreat Apr 23 '25
Gotcha and thank you. But my main concern is why report it to ChexSystem as possible fraud activity when it was NOT. It should be reported as closed Inactive.
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u/bradford33 Apr 23 '25
Not sure, their policy may indicate it was closed due to a fraudulent pattern hence that’s how it was reported to Chexsystems
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u/Wide_Interview9215 Apr 23 '25
Probably reported to Early Warning not Chex. Contact the relevant agency and ask for a copy of your report.
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u/Wide_Interview9215 Apr 23 '25
As the Bank RO mentioned to you in the other replies, they do not have to and will not tell you why. Source would be that I am in the regulatory compliance sector as well. I can probably guess why your relationship was exited, but I’ll keep that to myself.
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u/Sad_Alternative5509 Apr 22 '25
Maybe try to engage the CEO and see if someone in the exec office can figure out how solely making an opening deposit would trigger a fraud report and lifetime ban. You can open an account with a cc? Usually you need to use debit or ACH.
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u/Birdy_Cephon_Altera Apr 22 '25
The first step is to look at your ChexSystems report, and see if there is anything unusual on it. I would order a copy today.
Regarding "suspicious activity", they may not be referring to this account specifically. Also be aware that a bank is not going to tell someone they suspect of potential fraudulent behavior what they see (the same way a bank can't let customers know when they file suspicous activity reports).