JPMorgan Chase, Citibank, and other major US banks are under fire for abruptly closing the accounts of loyal customers. This process, known as “exiting,” has left nearly 200 former Chase customers in financial chaos and confusion after their accounts were wrongfully terminated. The closures, a result of a bureaucratic security process to prevent fraud, money laundering, and other criminal activities, have caused significant harm to honest individuals and businesses. Despite the rise in abrupt account closures, banks are not required to report the number of accounts being shut down.
It is reported that JPMorgan Chase has been accused of targeting customers due to their religious or political beliefs, with the bank allegedly violating its own policies on equality. Citibank is also called out for abruptly closing customer accounts without explanation, leaving customers like Caroline Potter in the dark about why their accounts were terminated. As banks continue to submit suspicious activity reports to the government at a rising rate, only a small fraction of these reports result in follow-up investigations, raising concerns about the arbitrary nature of account closures and the lack of transparency in the process.
The growing number of account terminations, the lack of customer notification about suspicious activity reports, and the minimal follow-up on these reports have sparked concerns about the impact of these banking actions on individuals and businesses. Customers are feeling the effects of “exiting” as they struggle to navigate financial stability after their accounts have been abruptly closed. Banks like JPMorgan Chase and Citibank have come under scrutiny for potentially targeting customers based on their religious or political beliefs and abruptly closing accounts without providing a valid explanation. The lack of transparency in the suspicious activity report process and the low rate of follow-up investigations adds another layer to the potential harm caused by these account closures.
