ubank Closed My Bank Account

Leppingnsw on 20/03/2025 - 13:14
Last edited 20/03/2025 - 13:21 by 1 other user

Hi, I want to know if anyone has experienced this before.

Today, I received an email from UBank stating that they are going to close my account:

UBank regularly reviews customers’ accounts, and upon our review, we have determined that we’ll be closing all your account(s) (other than any loan accounts you may have).

What this means for you:
You will have the next 30 days to withdraw any remaining funds in your account(s). If your account(s) have not been closed within 30 days, we will close your account(s) for you. If there are funds remaining in your account(s) at that time, for UBank to return these to you, we will need you to nominate an account held with another financial institution so that we can transfer the funds to that account.

I called UBank customer service to ask what was happening with my accounts. The representative told me that I had breached their general terms and conditions but could not explain exactly what I had breached. She said that the internal business team made the decision, and no one could clarify which specific terms I violated.

I then spoke to a manager, but they provided the same response.

I have been with UBank for more than a year, and this happened unexpectedly today. I would appreciate any advice.

Thank you.

Financial

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Comments

  • askbargain on 20/03/2025 - 13:19
    +100

    You know what you did

    • jv on 20/03/2025 - 13:47
      +6

      Opened another OzBargain account?

    • Yummy on 20/03/2025 - 15:09
      +6

      … last summer.

  • CodeXD on 20/03/2025 - 13:19
    +19

    Just take your money out and move to another bank.

    • jv on 20/03/2025 - 13:21
      +11

      and make sure you do not breach the other bank's T&Cs…

    • boomramada on 20/03/2025 - 15:02
      +3

      Open an account in mebank?

      • McMaferMur on 20/03/2025 - 15:08
        +2

        Ubank mebank theybank ourbank duh not so creative

    • arcticmonkey on 23/03/2025 - 12:19

      I'd raise an AFCA complaint first. Banks in Australia with their offshored service are completely useless. AFCA helps me time and time again.

      • LogicalJunkie77 on 23/03/2025 - 19:06

        This one is outside AFCA's terms of reference in afraid :(

    • MrMcHairyHead on 22/03/2025 - 16:52
      +10

      Another useless comment

      • jv on 24/03/2025 - 09:13
        -2

        Yet a factual one.

  • CaptainJack on 20/03/2025 - 13:21
    +7

    Unfortunately, it's probably their prerogative to do so even if the reasoning is non-sensical. Do you have anything they might consider dodgy, such as transfers to crypto exchanges?

    Honestly, ubank has become a bit shit, not the end of the world.

    • KangaDrew on 20/03/2025 - 16:01

      How is sending money to a crypto exchange "dodgy"? 🤦🏻‍♂️

      FWIW I've been using ubank to onramp for over a year… hundreds of transactions and not a hiccup.

      • CaptainJack on 20/03/2025 - 16:46
        +9

        That's why I said they might consider dodgy.

        • KangaDrew on 20/03/2025 - 17:33
          -4

          Why would they consider transfers to crypto exchanges as dodgy, but only for a subset of their customers and not others?

          • iDroid on 20/03/2025 - 19:34
            +7

            @KangaDrew: Could possibly be transfering money to/from exchanges that don't abide to the Know Your Customer regulations,

          • b0rnwithabeard on 21/03/2025 - 09:22
            +5

            @KangaDrew: Because a lot of people use crypto for "illegal activities". Not saying you are, but if you're performing actions that are similar to this KYC profile, they'll immediately block you, as obviously they don't want to be linked to it

          • CaptainJack on 21/03/2025 - 14:02
            +4

            @KangaDrew: I'm not affilitated with ubank but I can google it for you.

            Furthermore, there'll be patterns of usage that may come into it. Payments over $10k get reported to AUSTRAC. Open a new account and try to send 10k somewhere as your first/only transaction, well good luck. Least of all to a 2 bit crypto exchange or something.

            If you have an account you've been using for yonks for everyday expenses and salary, and you send $100 to coinbase at some point, they might understandably be less concerned.

            • kiitos on 21/03/2025 - 21:37
              -5

              @CaptainJack:

              Payments over $10k get reported to AUSTRAC

              I don't think so, as Ubank doesn't accept cash.

          • paulojr on 22/03/2025 - 11:12

            @KangaDrew: because their a bank and nothing inside a bank makes any sense. btw their parent company, NAB was on the news recently for setting up their own crypto wallet platform so it would be very funny if they did this because you did a crypto transfer.

      • dfg555 on 22/03/2025 - 02:23
        +2

        Because banks/government can't fully control crypto and they can't stand the fact that there's another financial entity people are getting away with.

    • Viospeed on 21/03/2025 - 12:57
      +1

      I've sent about $200k to crypto exchanges in the past 16 months from my Ubank account and haven't heard a peep from them so nothing to do with crypto.

      I also signed my parents up to an exchange and they transferred money from their Ubank account to a crypto exchange and after separate verification call for both my parents they allowed crypto transfers. This happened in the last 3 weeks.

      • Milkywayss on 22/03/2025 - 08:54
        +8

        I’m long on crypto and all, but signing your parents up to an exchange is a level above on the risk level. Good luck

        • Viospeed on 22/03/2025 - 09:26

          It certainly wasn't a spontaneous decision and was discussed extensively with them about the risks.

      • Raj09 on 23/03/2025 - 21:47

        Dude. Not your parents on to an exchange!

  • valuer on 20/03/2025 - 13:24
    +11

    notubank

    • twig on 21/03/2025 - 21:42

      yousebank

  • eppingnsw on 20/03/2025 - 13:24
    +4

    This is my regular saving accounts, I use for transfer money to wise and deposite $500 every month, that's all

    • leiiv on 20/03/2025 - 23:45
      +2

      Where are you sending the $500 deposit from?

    • fredblogs on 21/03/2025 - 12:34
      +3

      why to wise?

      • expertreader on 23/03/2025 - 17:30

        @fredblogs because ubank offers transfers via wise so there is nothing bad about it. OP must have either transferred to a dodgy account via wise or done something else that they wont disclose or genuinely unaware.

    • iDroid on 20/03/2025 - 19:38
      +12

      "I want to speak to your manager"
      Rep: "Why"?
      "You don't get paid enough to take the shit I'm about to dish out."

      • ArjaytheGuy on 22/03/2025 - 12:20

        Shit… thats golden. I like it.

    • us3rnam3tak3n on 21/03/2025 - 13:10
      +4

      If the representative you're speaking to can't find the answer that is a legitimate (ie non-Karen) reason to ask for their manager.

      • Purp on 23/03/2025 - 22:54

        In my experience in a call centre if the person you're speaking with doesn't have an answer the manager won't have a clue what you're even talking about let alone and answer

  • test8888 on 20/03/2025 - 13:26
    +4

    mine just got closed due to long time no activity.

  • WoodYouLikeSomeCash on 20/03/2025 - 13:30
    +2

    Macquarie Bank do the same thing for no reason.

  • tenpercent on 20/03/2025 - 13:33
    -7

    AFCA

    • Mulgabill on 20/03/2025 - 14:09
      +18

      I work for a Bank - Bank's can make a commercial decision to accept a customer just as a customer has the right to use a bank. AFCA cannot do anything about that. They also cannot compel a Bank to disclose the reason for the closed account.

      • JIMB0 on 20/03/2025 - 14:26
        +13

        It still costs them money to deal with and causes them a bit of headache. OP has nothing to loose.

        • Mulgabill on 20/03/2025 - 14:27
          +3

          Costs the bank nothing if its outside of AFCAs rules…so just wasting their own time

          • JIMB0 on 20/03/2025 - 14:29
            +2

            @Mulgabill: It wastes the banks time as well.

            • Mulgabill on 20/03/2025 - 14:34
              +2

              @JIMB0: Petty, but OK. Imagine if a bank wasted a customer's time just because the customer closed an account…

            • jv on 20/03/2025 - 16:10
              +1

              @JIMB0:

              It wastes the banks time as well.

              Which the customers end up paying for…

              • JIMB0 on 20/03/2025 - 17:53

                @jv: They already fleece the customer for as much as they can. It ultimately comes off their profit.

                • jv on 20/03/2025 - 17:54
                  +2

                  @JIMB0:

                  It ultimately comes off their profit.

                  Nope, it's a cost that they pass onto the customers through fees and interest.

                  • JIMB0 on 20/03/2025 - 18:07

                    @jv: They've already increased them to a level which maximises their profit.

                    • jv on 20/03/2025 - 18:14
                      +2

                      @JIMB0: Yep, customers are paying for it so the banks can get maximum profit.

            • Seraphin7 on 20/03/2025 - 18:36
              +1

              @JIMB0: Not if AFCA chooses not to pursue the complaint for one of the reasons available to them to do exactly that.

        • jv on 20/03/2025 - 16:10
          -3

          OP has nothing to loose.

          Except grammatical skills…

      • Mulgabill on 20/03/2025 - 14:33

        UBank has given 30 days notice, much more than AFCAs recommended 14 days.

        C.2.1 AFCA may in its discretion exclude a complaint, if AFCA considers this course of action is appropriate.

        C.2.2 (c)
        If the complaint relates to a Financial Firm’s practice or policy and does not involve any allegation of either Maladministration or inappropriate application of the practice or policy;

        • tenpercent on 20/03/2025 - 15:36
          +4

          AFCA will have no idea if "the course of action is appropriate" until the bank actually discloses the reason for closing the account. Hand waving "they breached the T&Cs but we won't tell you which T or C or how they breached them" probably won't fly with AFCA.

          • Mulgabill on 20/03/2025 - 17:08
            +2

            @tenpercent: The Bank will likely have referenced the T&C allowing them to close the account, not necessarily the exact reason though.

            From AFCA website
            Does the financial firm have to give me a reason for closing my account?
            It is helpful if a financial firm explains why an account was closed but there can be valid reasons for not explaining the decision to their customer. If so, we may be satisfied the financial firm acted reasonably even though it did not say why the account was closed.

            How will AFCA decide if the account closure was fair?
            In addition to the financial firm’s right to close the account, we will consider what is fair in all the circumstances.

            For example, it may be appropriate to give a customer living in a rural or remote area extra notice of the account closure so that they can make other arrangements. This might involve visiting a bank branch that is hundreds of kilometres away, which takes time and planning.

            What outcomes can AFCA provide for my account closure complaint?
            AFCA generally accepts that a financial firm can stop providing a financial product or service, so it is unlikely we will require the financial firm to reopen the account.

            If the financial firm did not provide enough notice and / or breached another obligation, we may require the financial firm to:

            extend the account closure date (if the account has not already been closed)
            compensate you for any loss incurred as a result, including claims for non-financial loss.

      • tenpercent on 20/03/2025 - 14:52
        -5

        So can they close someone's account if they dislike the person's lawful political free speech?
        How about can they close someone's account because they don't like their race or sexuality?

        • McMaferMur on 20/03/2025 - 15:10
          +3

          Because they can.

        • dtc on 20/03/2025 - 15:29
          +1

          No, because there are laws against making decisions for those reasons. Well, except for 'lawful political free speech' [sic], you are entitled to not provide a service to a person if you dont like their political views.

          • tenpercent on 20/03/2025 - 15:33

            @dtc: How does anyone know if they have made decisions for those reasons (and therefore breached the relevant laws against it) unless the bank discloses specifically their reason for closing the account (rather than fobbing off the OP with little more than 'oh you breached the T&Cs but we won't tell you which bit because we're petty and having a power trip')?

          • MorriJ on 23/03/2025 - 19:07

            @dtc:

            you are entitled to not provide a service to a person if you dont like their political views.

            Political views are a protected attributed.

      • paulojr on 22/03/2025 - 11:23

        thats only true if the reasoning turns out to be AML/CTF or otherwise fraud. If they're just being dks she has every right to get a reason, and can even use freedom of information act for that to get around a team of dks (usually in these sorts of companies the team leader protects her teams bad mistakes for KPIs).

        The only justified reasons I can think of is the OP is a terrorist or accidentally got dragged into something, in which case she is better get herself a lawyer and stop trying to fight them, or OP is engaged in some other fraud and a UAR was has been raised on her resulting in a close account instruction, same situation and she better also watch out for the police coming to her house during the night.

        If they closed it due to error or because they didn't like her tone on the phone, the revised banking code of practice gives OP the right to further information here and challenge them on competency.

        Bank can't just say. terms and conditions are breached and tell a customer to pee of and not expect a possible follow up action. Royal commission mark II would be coming as that's the kind of behavior that was behind how they handled junk insurance complaints and other wrong doings by the banks that the commission stamped down hard on in the end.

        Note I believe ubank now offshore a lot of the team? can anyone confirm?, more likely reason is its offshored somewhere where they don't train their staff well.

        They're following a script that is wrong and giving the blanket excuse for lack of understanding and care.

  • mskeggs on 20/03/2025 - 13:35
    +12

    All the banks are under pressure to prevent scams and money laundering.
    As a result they are closing accounts that are idle or have transaction patterns that are high risk.
    Open an account with your main bank for your savings, and never give ubank any more business.

  • Davo1111 on 20/03/2025 - 13:52
    +1

    they can do what they like. In the same way coles or WW can just ban you from the store.

    • tenpercent on 20/03/2025 - 15:22
      +3

      They have a license to print money from the government via the people. There is an implied social contract and social license to operate. It behooves them to explain why they are closing someone's account and that the reason be legitimate.

      • jv on 20/03/2025 - 16:12
        -2

        They have a license to print money from the government via the people.

        You are confusing the bank with the Royal Australian Mint…

        • tenpercent on 20/03/2025 - 16:16
          +5

          Royal Australian Mint…

          You may be confusing the Royal Australian Mint with Note Printing Australia, a subsidiary of the Reserve Bank of Australia.

          license to print money

          is just a figure of speech. They (commercial banks) don't actually physically print money. It's much simpler. They just conjure it into existence in a database on a computer screen every time they issue a mortgage. Something like 95% of all the money supply in Australia is conjured into existence in this way.

          • jv on 20/03/2025 - 16:20
            -5

            @tenpercent:

            You may be confusing the Royal Australian Mint with Note Printing Australia

            no

          • jv on 20/03/2025 - 16:21
            -2

            @tenpercent:

            They just conjure it into existence in a database on a computer screen every time they issue a mortgage

            Nope…

            Basel fixed that…

            • tenpercent on 20/03/2025 - 16:31
              +6

              @jv: Nope it didn't… Fractional reserve banking was not abolished. Not in the slightest. Basel III strengthened capital requirements and imposed stricter loan to value ratios, but the money issued to customers as loans is still conjured out of nothing. Ergo "license to print money".

      • Davo1111 on 20/03/2025 - 18:56

        It behooves them to explain why they are closing someone's account and that the reason be legitimate.

        why should they? lets say you are actually committing fraud, why would they tell you how they've caught you?

        They are essentially losing a customer for life by kicking them out the door, so they shouldnt be taking it lightly. (even though their current value may not be great)

        • tenpercent on 20/03/2025 - 19:50
          +1

          why should they

          Because…

          They have a license to print money from the government via the people. There is an implied social contract and social license to operate.

          .

          lets say you are actually committing fraud, why would they tell you how they've caught you?

          They wouldn't. But that's obviously not what has happened. If they knew a person was committing fraud they would provide the evidence to the police and let the police catch them out and press charges. OP wouldn't merely get their bank account closed without explanation. If OP was actually committing fraud then they would hardly waste their time with a forum post like this.

          • Davo1111 on 21/03/2025 - 18:25
            -2

            @tenpercent:

            implied social contract

            lmao. must have missed that in the Terms and Conditions of the last contract i signed.

            If they knew a person was committing fraud they would provide the evidence to the police and let the police catch them out and press charges

            They might not have enough evidence, but want to close the account anyway.

            would hardly waste their time with a forum post like this.

            LOL, i used to be an ozbargain mod. People tried all the time to plead ignorance to blatant sockpuppeting.

    • paulojr on 22/03/2025 - 11:26

      you got banned from a store? Please elaborate?

      • Davo1111 on 22/03/2025 - 13:02

        no, i didnt get banned. I'm saying they have the right to exclude you for any reason (including none). If woolworths wanted to ban every second person walking in the door for life, they could. It doesnt make business sense, but that's their prerogative.

        The bank has asked OP to leave. they have that right, and have no obligation to give a reason.

  • sghetti on 20/03/2025 - 13:59
    +6

    I'm assuming you've dabbled in sending money to Crypto exchanges. I used to do this from uBank but one day my account was locked and had to call them to discuss it. They said they'd unlock it but said to stop sending funds to Crypto exchanges (I was sending large amounts for investment) as they no longer supported it. I assume if I continued they'd close my account.

    I started sending funds to UpBank to send on to Crypto exchanges after that, I still have accounts with both banks.

    Edit: I'm not bad-mouthing them for this decision, I worked for banks as well and understand they have their risk tolerances. I stopped once they said no more.

    • CaptainJack on 20/03/2025 - 14:20
      +5

      That's good they told you why.

      • sghetti on 20/03/2025 - 14:23

        I think it was more that the transaction got held and the account frozen while their Fraud team investigated. If it was due to T&C's with the account then yeah, they probably wouldn't have told me.

        I was glad they did as I've still got the account and don't send to exchanges anymore, I just send out to another bank to do it from there :)

    • eppingnsw on 20/03/2025 - 14:27
      +5

      I'm not doing Crypto at all that is why I don't understand.

      • sghetti on 20/03/2025 - 14:30
        +11

        Banks don't close customer accounts for no reason. Having accounts and customers adds to their bottom line and financial reporting.

        To actively choose to close your account and tell you to move somewhere else, you're doing something that appears dodgy and opens them to risk.

      • Antikythera on 22/03/2025 - 17:07

        did you automate the minimum deposits for bonus interest?

        • expertreader on 23/03/2025 - 17:32

          @Antikythera how is that a bad thing? everyone does it.

          • Antikythera on 23/03/2025 - 19:07

            @expertreader: many special offers give you hoops to jump through to lower the companies exposure.
            for example mail-in-rebates never cost the company 100% of the possible exposure.
            because some customers fail whatever conditions.

            I'm wondering if banks are starting to try and limit exposure to bonus interest.

            like I read a post recently about one bank increasing the min deposit.
            the customer was complaining they didn't realise for a year+ and missed all the bonus interest they were expecting.

    • KangaDrew on 20/03/2025 - 16:07

      They said they'd unlock it but said to stop sending funds to Crypto exchanges (I was sending large amounts for investment) as they no longer supported it

      How long ago was this? I'm using ubank predominantly to onramp and just recently sent across more. They definitely support sending $ to exchanges.

      • sghetti on 21/03/2025 - 08:24

        Under 12 months ago. I hadn’t had an issue up until that point. It was a large amount over the space of a couple of months though.

  • Mulgabill on 20/03/2025 - 14:16
    +4

    I work for a Bank - I would say either gambling, crypto, lack of use or not happy with Wise (scams).

    • eppingnsw on 20/03/2025 - 14:30

      No gambling, no crypto, montly deposite, Wise is just buy some overseas currency for travel (is this recognizable as a scam?)

      • Mulgabill on 20/03/2025 - 14:32
        +2

        The Wise platform/service may be used for scams too?

        • interlocal on 20/03/2025 - 14:38

          I moved money from uBank to Wise regularly (yes, to buy crypto with Wise card), had 0 issues with that. Wise is pretty reputable payment system, I would be very surprised that bank would close accounts just because client uses Wise.

          • paulojr on 22/03/2025 - 11:32

            @interlocal: international money movement on a regular basis is exactly what the fraud platforms look for, especially if you tried to transfer to a banned country currency. But again, hugely unlikely to see an issue unless it was big amounts like over 10k.

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