By Strange Sounds
Banks are closing down personal accounts without any notice, according to a new report released by the New York Times. That comes as the credit crisis continues to worsen and hurt Americans financially. Banks are now trying to reduce the risk of losses and failures, even if that means leaving people without access to their funds. Conditions continue to deteriorate in the financial sector, which is putting many institutions in a tough situation right now.
The Times reported that the number of clients getting dumped by their banks is rising dramatically. Experts estimate that thousands of people are losing access to their bank accounts and credit cards every month. Oftentimes, they are restricted from withdrawing their funds for weeks and months That is leaving many people scrambling to pay their bills and buy everyday essentials right now. Even though banks do not reveal precise data on how often they are doing this, analysts observed a 50% increase in the number of “suspicious activity reports” (SARs), which typically lead to them ghosting customers without warning.
Analysts tracked a series of real-life examples of customers getting abruptly dropped by their banks and exposed plenty of instances where the decision was not just sudden but completely unjustified. Delinquent customers face the highest risk of having their accounts shut down. Americans took on a massive amount of debt in recent years, and as interest rates went up and made loans more expensive, it’s getting more difficult to get out of debt…