Macquarie Bank Is Closing My Transaction Account after 5 Years for No Apparent Reason

Scrooge McDuck on 01/08/2022 - 17:16

I have used my Macquarie Bank Platinum Transaction Account as my primary transaction account for over 5 years. I especially enjoyed their unqualified Australian ATM fee rebate which was handy to withdraw cash at the closest ATM.

Today I received this email from [email protected]

I am writing to you regarding the above account. Following a recent review, please be advised we will be closing your account effective {day}/08/2022.

To organise payment of the outstanding balance to another account, please complete and return the attached withdrawal form.

If there is any credit balance remaining on the account at this date then we will remit the balance to you by sending a bank cheque to your address, along with confirmation of your account closure.

If you require further information please refer to section 9 of the Macquarie transaction and savings accounts terms and conditions.

Yours sincerely

Client Services

I immediately telephoned customer service and was told that "a business decision" had been made to close my account. I further enquired as to why but to no avail. So I escalated the matter to the complaints department.

I don't know why they would want to close my account. My best guess is that last month I made a large transfer to my Wise account to finance my Schwab account to invest in the US. For an account which they market as being good for International Transactions it would be quite pathetic if this was the issue.

This seems like quite untrustworthy conduct for a bank so I intend to kick up a big stink about it! I'm happy to complain to the Australian Financial Complaints Authority. Any advice is appreciated.

Is any of this likely to affect my standing with other Financial Institutions?

I already have ME Bank accounts and it looks like they refund all Australian ATM fees too, so I may just move over to them.

Financial

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Comments

  • capslock on 01/08/2022 - 17:22
    +13

    You won't get anywhere complaining. Just switch to a different bank and move on.

    • Scrooge McDuck on 01/08/2022 - 17:25
      +17

      If it costs them money to deal with the complaint, they'll be less likely to continue this type of practice in the future.

      I generally try to be a force for good and part of the solution rather than bystanding or enabling.

      "The only thing necessary for the triumph of evil is for good men to do nothing."

      • hotdog85 on 01/08/2022 - 17:37
        +2

        They have likely flagged your account as suspicious.

        Nothing you can do will matter.

        You can read about it happening to others on reddit. Here’s one https://reddit.com/r/AusFinance/comments/w7kbzr/can_i_force_…

        • markathome on 01/08/2022 - 21:38

          $1000 compensation??? Even in the meme they only get $100.

          https://www.youtube.com/watch?v=LfXRrYWmQ_g

          And yeah my first thought Scrooge was money laundering legislation. The guy on the Reddit filed a complaint with AFCA - maybe that should be your first step?

      • Qazxswec on 01/08/2022 - 17:43
        +9

        But i thought you just kept all of your money in a big vault and swam around in it

        • JIMB0 on 01/08/2022 - 20:28
          +2

          The alligators don't like to share the moat.

      • garetz on 01/08/2022 - 18:32

        That transaction was probably flagged as possible money laundering, and when that happens they close the account, just the possibility of that being the case is enough for that to happen. So time to move on.

        • Scrooge McDuck on 01/08/2022 - 19:26

          There's a niche for a bank with guts to step up to the plate. This level of risk aversion is just cowardly.

          • reactor-au on 02/08/2022 - 09:50

            @Scrooge McDuck: In all the OECD countries the fine for a financial institution not complying with anti money laundering laws is not insignificant.

          • mjwills on 02/08/2022 - 09:57
            +1

            @Scrooge McDuck: Yes I am sure many banks will step into the tempting niche of "higher than usual possibility of money laundering".

  • EightImmortals on 01/08/2022 - 17:22

    Yeah I've heard some weird stories like this recently.

    Was talking to a guy IRL last week who has been slowly taking his money out of the bank (Bendigo Bank) 5K at a time. The last time he did this he was asked to come into the office by the bank staff who commenced to grill him over what he was doing. He told he wasn't being scammed and to mind their own business and was told they would be shutting his account.

    Not sure what's going on TBH.

    • Scrooge McDuck on 01/08/2022 - 17:29
      +7

      "Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety."

      The world is going in the wrong direction and it will be a long time before it changes course.

      • freefall101 on 01/08/2022 - 17:59
        +5

        To be "that guy", the essential liberty being referenced there is the state's right to levy taxes against the wealthiest family in the state - the word "purchase" was mean quite literally as the Penn family were offering to pay a lump sum in order to never have to pay taxes again.

        Franklin was attacking the governor for not being more involved in the private affairs of people, not the other way around. And last I checked banks are private companies, they can do whatever the hell they want, including dumping high risk customers.

        • cfuse on 02/08/2022 - 10:49
          +2

          And last I checked banks are private companies, they can do whatever the hell they want, including dumping high risk customers.

          Private companies should not be allowed to do whatever they like. We have laws for a reason.

          Banking is an essential service and should be regulated as such. As far as I'm concerned banks shouldn't have the right to decline basic service (ie. receive and send funds, without any form of credit) to clients they've already accepted without exceptional circumstances. The power to control an individual's finances is too great to leave in the hands of a private entity with zero oversight, transparency, nor right of appeal. If a client is a bad risk, that's a provable assertion.

          Banking is not an open playing field. You cannot simply start your own bank if you feel like it, because other financial institutions will blacklist you and deliberately kill your ability to do business. If a sector isn't open to all then as far as I'm concerned that's an invitation to the state to regulate it up to the eyeballs.

          I have no interest in living in China with defacto social credit and all the punishments that go along with it. Neither the state nor private entities should have the right to prohibit essential services to the individual without provable cause solely related to financial risk to the institution. Bad risk is a blanket excuse here and we all know it.

          Either the state offers their own basic service or they compel banks to do the same. That takes the prospect of financial abuse off the table.

          • freefall101 on 02/08/2022 - 11:02
            +1

            @cfuse: I didn't say how it should be but how it actually is. And I figured it was implied they should operate within the law, but there's definitely no law saying you have to get a bank account.

            If you're homeless and don't have ID, banks don't have to give you a bank account - that's a real problem in our society for many reasons. Or if you don't want to declare large cash movements, or one of many other reasons they can dream up you're a risk, they'll simply say no.

            If you want it enshrined in law that you get access to a bank account you'd better contact your local MP because banks sure as hell aren't under any requirement to do so right now.

    • djkelly69 on 01/08/2022 - 17:52

      a guy … who has been slowly taking his money out of the bank (Bendigo Bank) 5K at a time.

      Didn't someone post here about this?? Can't find the thread now.

    • trapper on 08/08/2022 - 11:26

      Was talking to a guy IRL last week who has been slowly taking his money out of the bank (Bendigo Bank) 5K at a time.

      Slowly emptying an account by withdrawing cash $5k at a time? It does seem kinda dodgy to be doing this though doesn't it…

      • EightImmortals on 08/08/2022 - 11:57

        I think he was buying gold and silver, any transaction over 5K at a time attracts the attention of Big Bother.

        • trapper on 08/08/2022 - 15:40

          You can buy gold or silver with electronic payment.

          It's the multiple large cash withdrawals that start to look dodgy.

          • EightImmortals on 08/08/2022 - 16:12

            @trapper: Yeah fair point. I didn't know the guy that well so I didn't pry too much. :)

  • John Kimble on 01/08/2022 - 17:30

    What does section 9 say?

  • iNeed2Pee on 01/08/2022 - 17:48

    Put a formal complaint in.
    https://www.macquarie.com.au/feedback-and-complaints.html

  • burningrage on 01/08/2022 - 17:49
    +3

    Cancelled culture… now debanking culture is happening.

    • whatwasherproblem on 01/08/2022 - 17:57
      +4

      Oldmate I know about over the Internet is literally unable to get a bank account in his own name because he runs an Internet forum that a lot of people don't really like. Once the banks have depersoned you because enough people have kicked up a fuss, you're done: living life at all becomes a massive inconvenience.

      • cheekymonkey97 on 01/08/2022 - 18:10

        You talking about Omni?

        • whatwasherproblem on 01/08/2022 - 18:15
          +1

          More 'New Zealand agriculture', but similar dealie.

  • djkelly69 on 01/08/2022 - 17:51
    +18

    Nothing to do with your "friend" who was looking for an international account to use with casino/gambling monies?

    • whatwasherproblem on 01/08/2022 - 17:58

      Good find. Yeah, that'd do it.

    • Scrooge McDuck on 01/08/2022 - 19:29
      -5

      No, and regulated gambling is lawful. It's a huge source of tax revenue.

      I'm not involved with any criminal activity. The only law I break is occasionally exceeding the speed limit.

      • djkelly69 on 01/08/2022 - 19:42
        +2

        Not suggesting it is illegal, but some banks don't like/want to be associated with it.

        • whatwasherproblem on 02/08/2022 - 13:48

          To follow up with what @djkelly69 said, one of the reddit links posted upthread had some guy banned from a bank because his wife (with separate accounts) was making ostensibly dodgy payments to an ostensibly dodgy business. So even if you were being serious about it being a friend and the friend was lowkey up to shenanigans, the banks might decide to just play it safe and cull everybody even remotely involved (i.e. you, if you've ever had a financial transaction or business relationship with your friend). Sucks to be sure, but they have the money so they make the rules.

    • dpark88 on 02/08/2022 - 10:13

      Nailed it.

  • Seraphin7 on 01/08/2022 - 17:58
    +2

    I don't know why they would want to close my account. My best guess is that last month I made a large transfer to my Wise account to finance my Schwab account to invest in the US. For an account which they market as being good for International Transactions it would be quite pathetic if this was the issue.

    I think this is unlikely. A single transaction, of itself, is rarely enough to trigger this king of action. (It may result in questions/issues with the transaction, but not an account closure).

    What is more likely is some pattern of transactions that is causing problems … for example, excessive ATM transactions (i.e. gaming any rebates), using the account for business (not personal) purposes, or the appearance of people other than the account holder operating the account.

    Obviously I cannot comment on your specific matter, but any pattern of unusual or excessive transactions or activity could well be the issue.

    • Scrooge McDuck on 01/08/2022 - 19:31

      I make over 10 ATM withdrawals per month, but they're all legitimate personal transactions. I don't have a business.

      • CheapskateQueen on 01/08/2022 - 21:40
        +1

        I mean 10 wouldn't make them closing your account reasonable but 10 is still a shipload these days. I do like one every six months.

      • Lunarboogie on 02/08/2022 - 00:45
        -3

        So you thought by withdrawing $20 at a time and thereby costing the bank something that they'd idly sit by and wait for you to keep rorting. Just because it's free doesn't mean you ought to abuse it. Your ATM use is flagrant and way above that of the average Joe. Reap what you sow.

        • terrys on 02/08/2022 - 09:04
          -1

          withdrawing $20 at a time and thereby costing the bank

          The decision to move to ATMs to save on staffing costs and paperwork, then start charging for access for a relatively cost-free electronic transaction once wages were no longer paid in cash and local branches were gutted then closed was one taken by the banks.

          Cry me a river. They may reap what they sow.

      • Seraphin7 on 02/08/2022 - 09:22
        +3

        This is the more likely rationale. They are covering the cost of your ATM withdrawals that may amount to $30+ a month. At that level it is likely that the account is making a massive loss for them and they've made a commercial decision to shut it down.

  • dtc on 01/08/2022 - 18:15
    +1

    Probably related to concern that they cant meet 'know your client' requirements

    • Scrooge McDuck on 01/08/2022 - 19:32

      I've had the account for over 5 years.

      • dtc on 02/08/2022 - 10:57

        They get alerts for 'suspicious' behaviour and then look at the account; the KYC is an ongoing obligation so just because it was opened 5 years ago doesnt mean that its good forever.

      • MrMarket on 02/08/2022 - 15:05

        more data for them to look at easier to make a case

  • Downvoter on 01/08/2022 - 18:17
    -6

    Their bank their rules. Serial complainer by the sounds of the fuss you’re making.

  • outlander on 01/08/2022 - 18:38
    +4

    Not saying the reason, and giving you less than a months notice is definitely dodge. Smacks of disrespect

  • KangaDrew on 01/08/2022 - 18:53
    +6

    This post reminded me of a news article the other month where ING did the same thing to a few people. Apparently, it's called "de-banking". Obviously, I can't confirm this to be accurate, but banks have done dodgier stuff than cancel accounts for no reason, so a process called de-banking isn't the greatest stretch of the imagination.

    Katie said she had racked her brains trying to think of possible reasons why her bank dumped her, but was still stumped – until a friend who worked in finance shared a potential theory.

    “My friend has seen this before – it’s called debanking, when a bank closes accounts for no particular reason at all, and it’s very hush-hush – they won’t tell you why, not even frontline staff or managers, and it’s all cloak-and-dagger,” she said.

    “It could be due to one of two things – either you’ve committed a criminal act that’s under investigation by the Australian Transaction Reports and Analysis Centre (AUSTRAC), and that’s not me, or secondly, they’ve done something wrong themselves with paperwork, and it’s easier for them to get rid of customers than potentially to get huge fines in the future after not having followed the right processes.”

    Katie now believes ING failed to gather the correct identification paperwork from her when she originally opened her accounts, and was now scrambling to avoid a possible fine.

    • Benoffie on 01/08/2022 - 19:13
      +3

      Exactly this. Commbank used Austrac to hide the fact that, back in 2016, an account under my name was opened with no ID.

      They also didn't like questions around how CommSec accounts can be opened and trade without entering a branch so long as it doesn't hit their magical internal threshold (which I discovered is around $36k)

    • FourSquareMan on 01/08/2022 - 19:29
      +5

      Yes same with me with ING bank.
      Been with them 12 years then suddenly want to close my account because they have no record of my medicare card. What !
      When I tried to add it online as was suggested in the email, the link did a blarmy when I added the jpg closed down and said I had to report to a local post office to provide identification that I am not Peter Foster.
      All this for an account that has never had a balance of over $1,000, while huge scams are going on uninvestigated !

  • askbargain on 01/08/2022 - 19:01
    +2

    I especially enjoyed their unqualified Australian ATM fee rebate

    this??

  • Ocker on 01/08/2022 - 19:02
    +2

    I would suggest this is more fallout from the RC Banking Enquiry of 2017-2019. All banks are gun shy now about even the smallest of possible breaches of the banking code.
    Customers will never win in lodging a complaint with the bank once they have taken a decision- the downside for them is too great

  • Benoffie on 01/08/2022 - 19:09
    +5

    I had a similar issue with CommBank suspending my account due to suspicious activity. When I queried what precisely that was, it was a large deposit coming in off the ASX (not the fact the money went out the same way).

    AFCA are completely useless and can't force the banks to do anything. However, if you have suffered a financial loss (such as the trading loss I suffered and the 2 days off work to go stand in a branch at the height of the lockdown), you can screw them for that.

    This stuff needs to be reported because they use Austrac reporting requirements as an excuse to hide outdated and nonsensical policies.

    • terrys on 02/08/2022 - 09:10
      +1

      A couple of years ago I received a credit card form them over the Xmas holiday period. "Curious", I thought, as I hadn't had an account with them since 1986.

      I went into the physical branch at head office, and it seemed the person who opened the account had also opened an Optus service but the other details matched the details they had from the account I closed in 1986.

      I can only assume that it was someone local who was hoping I'd been going away for a holiday

  • JIMB0 on 01/08/2022 - 20:33
    +4

    Just leave one cent in each account and have a good laugh when the cheques show up in the mail. Pin them up on the wall for show.

  • Nutrino on 01/08/2022 - 21:07

    I would go to the UN, it's your basic human right to have a bank acc.

    • terrys on 02/08/2022 - 09:13

      When the finance industry pushes their wish to move all economic activity to electronic transactions, they make it a need.

      Thanks for making the point.

  • RotundPolarBear on 01/08/2022 - 21:25
    +2

     large transfer to my Wise account to finance my Schwab account to invest in the US

    You can transfer directly into Schwab with AUD. The exchange rate used was pretty close to the actual rate, from memory. Not enough of a difference for me to bother with going through a third party middle man for low six figures.

    But I guess if you were funding your account with mid six figures or millions then it might be worth your while. Then again, a large sum like that suddenly going into Wise might seem a bit suss, especially from the bank's perspective, as Wise is not really a place someone would keep a lot of money, so it's obviously going to be sent off elsewhere.

  • vikvance on 01/08/2022 - 23:38
    +2

    Is any of this likely to affect my standing with other Financial Institutions?

    No, not at all. A complaint by you to the AFCA cannot be used by another Financial Institution as a reason to deny you services.

  • HelpMeiCantSee on 02/08/2022 - 07:50
    +3

    Commbank did this to me about a decade ago. A “business decision”. No reason given. It took about two years of pressing and fighting, and I eventually found out my account was used to receive scammed funds which I was not aware of (in and out same day).

    Nothing I could do to change it. I believe it’s permanent- it caused issues when I went to change our mortgage from cba (was in wife’s name) to another bank in both our names. They (again) refused to provide any information and were generally obstructive. Thankfully this time the ombudsman helped.

    I suspect it’s to protect themselves just in case where there is no evidence to take to police. Honestly, I would have rather had a police investigation, at least it would have been fairer.

  • vikvance on 02/08/2022 - 08:51
    +5

    It is very sad to see some of the responses defending Macquarie & saying that OP should just "suck it up".

    A bank account is a human right in Western societies because without a bank account one cannot literally function as a member of society. Salaries, for example, are directly paid into bank accounts. A lot of places now only accept contactless payments so one cannot buy anything (even essentials such as food) without a debit card.

    OP should fight this all the way to the AFCA & get the decision reversed.

    There is no need to white knight Macquarie. They are "big boys" & don't really need the support of random Internet commentators.

    • capslock on 02/08/2022 - 09:18
      +1

      Westpac was fined $1,300,000,000 for money laundering breaches. How many AFCA complaints will it take before a bank decides they'd rather avoid AFCA costs than government fines?

      Oh and having a bank account specifically at Macquarie is not a human right. There is nothing stopping OP from having a bank account at any of the other many banks out there.

      • vikvance on 02/08/2022 - 11:38
        +2

        Except that if Macquarie are closing OP's account, then other banks will also do the same because all the banks have common information sharing.

        The government has never said that banks should close someone's account if they suspect money laundering. The government only asks for KYC requirements to be fulfilled and any suspicious transactions to be reported to the government.

        Macquarie closing OP's account is just them being lazy & wanting to cut their own reporting costs.

        Also, I still don't understand why you feel the need to defend a corporation that made $5 billion dollars in profits last year ? Is Macquarie so small, poor & defenceless that it needs internet commentators like yourself to rush to their aid ?

        • Ryk on 02/08/2022 - 12:41

          all the banks have common information sharing.

          no, they do not. see Privacy Act and Competition Commission

  • Odin on 02/08/2022 - 10:17

    Crypto?

  • tabitha731 on 02/08/2022 - 18:26

    You’re nothing to Macquarie, sounds like they’re cleaning up grandfathered account those to streamline their products offered, a piddly account such as yours doesn’t generate enough business for them, to make u a worthy customer

  • movieman on 30/11/2023 - 22:11

    How did it go OP?

    What did you end up getting from Macquarie? Any resolution?

    I have recently had the same issue, and they advised the only action I can take is to lodge a complaint with AFCA - which I've now done.

    • Scrooge McDuck on 01/12/2023 - 03:31
      +1

      No explanation from Macquarie. I gave up with them. I'm pretty sure the cause was sending money to Wise.

      • WoodYouLikeSomeCash on 11/07/2024 - 18:44
        +1

        Same thing just happened to us today. They said the funds were transferred to a managed fund (they’d taken it and invested it). We’ve got the statements to prove the money was earnt legitimately (salary from work) and so we will pursue with AFCA.

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