Posted on 02/19/2010 2:17:37 PM PST by blam
Citigroup Warns Customers It May Refuse To Allow Withdrawals
John Carney
Feb. 19, 2010, 2:57 PM
The image of banks locking their doors to keep customers from making withdrawals during a bank run is what immediately came to mind when we heard that Citigroup was telling customers it has the right to prevent any withdrawals from checking accounts for seven days.
"Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change," Citigroup said on statements received by customers all over the country.
What's going on? It seems that this is something of an error. The seven day notice policy only applies to customers in Texas, Ira Stoll reports at The Future of Capitalism. It was accidentally included on customer statements nationwide.
"Whatever the explanation, it doesn't exactly inspire confidence in Citi," Stoll writes. "But it's hard to believe a bank would be sending out a notice like that on its statements."
(Excerpt) Read more at businessinsider.com ...
Well, that is one way to start a run!
BOHICA
I would be moving any money there before April 1st.
That is EXACTLY what I was thinking. If I had money in that bank I would be taking it all out right this second.
I believe banks have always had this right, IIRC...
Wait a minute. Isn’t it a federal regulation that banks clear local checks within 48 hours or so? Does this mean that checks drawn on a Citi bank may not clear for up to 7 days?
Never had citibank as my fin’l institution. But most of my family and friends have. Time to pass this info along...
“Citigroup Warns Customers It May Refuse To Allow Withdrawals”
So....when they go out of business, do I still have to send them my car payment?
Citigroup customers may want to find another bank.
Man, if I lived in TX and Citibank told me I couldn’t withdraw MY money for a week, I’d find another bank, pronto.
Citigroup is a house of cards.
Right if CitiBank is saying this there is no bank that is safe!
Water, food, guns, ammo, and fuel! Some cash on had because its getting ready to hit the FAN!
It’s Ken Lewis’ fault! :)
“...do I still have to send them my car payment?”
Do I still have to send them my mortgage?
I have wondered what will happen when this day approached.
I guess we will both find out.
I would have already been down there and emptied my $$. Screw them comes to mind.
It’s not your money, anyway. Banks also restrict the number of transactions (other than deposits) that you can make from a savings account in a month. Apparently, more than 6 transfers (including automated), bill-pays, or payments using a card constitutes excessive activity.
Not true at all, really.
Many smaller banks are doing much better than Citi.
Well that should finish citi bank. I would rather drive a Toyota with a Hanging Throttle than keep my money in the approved bank of the Monopoly Board...
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