Article

2010-02-20 Economy

Citigroup Warns Customers It May Refuse To Allow Withdrawals

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Posted by Anonymoose 2010-02-20 11:47|| || Front Page|| [11131 views ] Top

#1 "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.

Nice move. Expect a major drawdown/cancellation of accounts in 5...4...3..

Posted by Frank G 2010-02-20 12:24|| 2010-02-20 12:24|| Front Page Top

#2 Looks like the Marketing Department of my former and now-deceased IT employer has now found work....!

Posted by Uncle Phester 2010-02-20 13:21|| 2010-02-20 13:21|| Front Page Top

#3 Somehow we all knew this was coming.

"No pulse, no hearbeat. If condition does not change, this man is dead."
Sidney Wang, Murder by Death (1976)

Posted by Besoeker 2010-02-20 13:40|| 2010-02-20 13:40|| Front Page Top

#4 At least California gives IOU's.

I stopped doing business with Citibank, Travelers... when they got takenover by Obama and Company

Posted by airandee 2010-02-20 14:37|| 2010-02-20 14:37|| Front Page Top

#5 I am starting to think my mattress is safer for my money than banks are.

Posted by DarthVader 2010-02-20 16:28|| 2010-02-20 16:28|| Front Page Top

#6 Per the article this actually only in effect in Texas but mistakenly sent out to all States. BUT if Citi is in trouble in Texas they are in trouble every where else.

Or is this one of those things in the fine print (microscope required) that no one reads and Texas made plain notification a requirement?

Posted by tipover 2010-02-20 16:40|| 2010-02-20 16:40|| Front Page Top

#7 This is most likely much ado about nothing. See this 550 page+ PDF from the Federal Reserve. Flip to p. 37, using the Acrobat Reader page select window, there see Highlights of Regulations Q and D
that Affect Consumers
Seven-Day Notice Period
Banks must reserve the right to require at least
seven days notice of a customers intent to
withdraw funds from savings accounts, NOW
accounts, and ATS accounts. Banks have the
option of enforcing this notice requirement, and in practice it is rarely, if ever, enforced.
Only exception is on p. 35: Demand deposit accounts have the following
characteristics:
No maturity period (or maturity period of less
than seven days)
Payable on demand (or on less than seven days notice)
May not be interest-bearing
No limit on the number of withdrawals or
transfers an account holder may make
No eligibility requirements I've never had a Demand Deposit Account, and I doubt few people have. Most people want some kind of interest paid on money they keep in a bank.
I have read many stories online of people who tried to withdraw as little as $500 in cash at one of their banks & could not get it for several days. Many of these stories pre-date the current financial crisis.

Posted by Anguper Hupomosing9418 2010-02-20 19:32|| 2010-02-20 19:32|| Front Page Top

#8 Really tired of banks being in the RIP OFF biz.

Posted by 3dc 2010-02-20 20:46|| 2010-02-20 20:46|| Front Page Top

#9 Hell, its been a zombie bank for what, a year now? Without another feasting on ~~brains~~ chaange! it was only a matter of time before stuff like this pops up...if this is all in context and correct. Many reporters know as much about banking as they do the military so be sure to look into it yourself if you think you are affected.

If the banks were forced into these situations by laws, then ya gotta mention being pissed at the gov. If the bank was making bad moves which threatened the bank then the gov regulators should have caught it and again must mention the gov.

There are a ton of bank choices out there..if ya still with a bailout bank imho ya askin for it; not suggesting what you should do with your money mind you, just be sure about what you are doing with your money...you wouldn't just drop your kids off with anyone so why do that with your money. Shop around, don't just choose a bank solely because it is on your way home from work.

Posted by swksvolFF 2010-02-20 21:09|| 2010-02-20 21:09|| Front Page Top

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