Citigroup announces it has the right to prevent withdrawals for seven days

Discussion in 'The Okie Corral' started by itisbruno, Feb 21, 2010.

  1. itisbruno

    itisbruno Devious Member CLM

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    Citigroup Warns Customers It May Refuse To Allow Withdrawals

    SOURCE

    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."
     
  2. M2 Carbine

    M2 Carbine

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    Screw them.
    When I want my money, I want it NOW.

    Why would anyone even do business with an outfit like that?
     

  3. Ronaldo

    Ronaldo Ancient Member Millennium Member

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    And why would this apply only in Texas?

    Need more details or calling BS!
     
  4. Fugitive74

    Fugitive74

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    I'd be emptying my account March 31st.
     
  5. hvnit2gd

    hvnit2gd

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    There are plenty of other banks that would gladly want your business without this provision!!! Everyone with CITI, take all your money out before April 1 and place it in a more reputable bank!!! They wanna play games, let them play with less customers... I am sick of these bailed out companies holding the American public hostage.... We should all boycott ANY company that acts like this or has taken a bailout...
     
  6. itstime

    itstime

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    These are the people closing my credit card because it is too good to me and not them. Closing date is the 25th. I'll have a USP on there before that.
     
  7. hvnit2gd

    hvnit2gd

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    Its funny how they make the rules (reward points, bonus cash, etc..), but when you follow those rules they want to cancel your card... They should have let the bums go out of business.
     
  8. Glock20 10mm

    Glock20 10mm Use Linux!

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    Citigroup is not the only one... others will follow suit if they see a run as well. Bankers are far more dangerous to Americans that al-Queda will ever be.
     
  9. hvnit2gd

    hvnit2gd

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    There will be riots in the streets if banks closed there doors with our money in them... I assure you that!!!
     
  10. Glock20 10mm

    Glock20 10mm Use Linux!

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    I doubt there would be many or very large at that. Most Americans are so apathetic they would sigh and take it a bit deeper. The few that would riot would be labeled as domestic terrorist under the (un)Patriot Act and dealt with accordingly. The sheep will be brought in line with minimal fuss.

    We are not uncomfortable enough as a nation to start rioting or really pushing for serious change. There are rumblings out there but they are in their junior stages now and extremely frail. That's how I see it.
     
  11. hvnit2gd

    hvnit2gd

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    You might be right, but I would hope that at some point people will stopping taking it "deeper" as you put it...
     
  12. Squaw Man Wolfer

    Squaw Man Wolfer

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    Don't take a Citi check from anyone in payment.
     
  13. wjv

    wjv Zip It Stan Lee.. . .

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    Most banks have had this (or similar) policy in place for decades. Most bank don't exercise this policy except in certain situations, such as large out of State personal checks. And even then, if you have enough in your account to cover it, they wave that rule.

    Look through your paperwork from when you opened your checking account, and 99% of you will find similar language in there. Dome places will say 3 days, others will say 5, and others will say 7. Citigroup probably just changed theirs from 5, to 7. . hence the announcement.

    Because banks also follow State banking laws. You can have two bank sitting on the TX/OK border, 100 yards apart, one in TX and the other in OK, that both say "MegaBank" on the front. But they are two separate corporate entities (both owned by the same umbrella corp.

    So when they roll out rules, they actually roll out 50 new sets of rules (or 57 if your Obama), because the laws are different in every State. Texas law probably had some prohibitions in it regarding this topic, but the new Federal Banking law that takes affect in a couple months supersedes it. So now they are changing Texas laws to butt-f. . . Um, I mean enhance their level of service for customers in TX.
     
    Last edited: Feb 21, 2010
  14. RonS

    RonS Millennium Member

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    Looks questionable, some sources are quoted as above, some are saying it is only for a single hedge fund.
     
  15. captainstormy

    captainstormy

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    If I had an account with Citi, I would certainly change that now.
     
  16. hatidua

    hatidua

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    I don't have a Citi account but to all of those of you kicking and screaming, try going into your local bank and asking for a large withdrawal from your account, in cash, right now and see how well that works out for you. No, not $300, a decent amount.

    I've tried it, and most banks will tell you to come back tomorrow at the earliest.

    Access is pretty easy at $100.
    Access gets delayed when dealing with significant amounts.
     
  17. 10mm29

    10mm29

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    I agree 100%

    On another note, if people are really fed up with the way the big banks do business and the government bailing them out then put your money elsewhere. Most credit unions offer better interest rates and are more sound than the big banks any way.
     
  18. hvnit2gd

    hvnit2gd

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    I agree with this approach... right now I have bank accounts with 3 banks, 2 banks and a credit union... USAA is more like a CU though...anyway, if I dont like the policies of anyone of them, I can easily move my money to the other... makes it easier for me than trying to open a new account all the time.. .
     
  19. Squaw Man Wolfer

    Squaw Man Wolfer

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    Does Citi bank wait 7 days to get and use the money posted to your account?
     
    Last edited: Feb 21, 2010
  20. KilgoreTrout

    KilgoreTrout Impossiblist

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    maybe every texan citibank customer will withdraw their balance before 4-1.