Don't Pay Down Your Debt!

[peptoabysmal]

Rational explanation

Good job Zakur, this certainly seems a more likely explanation.

I'd like to repeat, because this is important: a red flag DOES NOT trigger filing of a SAR as was told to the customer. It only triggers an internal (i.e. only by financial institution) review of the account, especially with the amount involved in this story. Depending on the findings, however, a red flag may trigger continued monitoring of the account, based on the financial institution's policies.

One thing is certain, paying off loans (any kind) is one of the typologies already identified for laundering money and financing terrorism. This, BTW PRE-DATES Patriot Act - as does much of the information found in the BSA document mentioned before. What has changed after PATRIOT Act is the increased enforcement of the laws.

...

Always question the motives behind a bank telling anyone that it was required for them to file a SAR. First of all, it consitutes "tipping" (letting the customer know that they have filed a SAR on them/their transaction - a big NO-NO. Second, many financial institutions have been lobbying congress for less regulatins because, guess what, implementing all this costs them money.

 

[Beerina]

http://www.shns.com/shns/g_index2.cfm?action=detail&pk=RAISEALARM-02-28-06

This can't be good for a free society. Rhode Island couple sent a big check in to pay off their credit card debt. Told that it would take a while to clear becase the Dept. of Homeland Security had to be notified because of the size of the transaction.

What I don't understand is why does notifying the department of HS delay the check processing and clearing? What, are they waiting for an OK? Are they waiting for the department to see if the department wants to seize the money first?

 

[Tony]

http://www.shns.com/shns/g_index2.cfm?action=detail&pk=RAISEALARM-02-28-06

This can't be good for a free society. Rhode Island couple sent a big check in to pay off their credit card debt. Told that it would take a while to clear becase the Dept. of Homeland Security had to be notified because of the size of the transaction.

Gee, I feel a whole lot better about national security now. I mean, clearly if Bin Ladin attempts to pay off his Penny's card, we'll have him nailed.

Can't this couple sue the Department of Homeland Security?

 

[CapelDodger]

If everyone paid off their debts, the economy would collapse!

Exactly. It's economic terrorism.

 

[Geckko]

If everyone paid off their debts, the economy would collapse! Don't listen to that commie bastige Ben Franklin! It's anti-American to pay what you owe! String 'em up and teach 'em a lesson!

But Ben Franklin was probably the originator of the US national debt.

 

[mgidm86]

But Ben Franklin was probably the originator of the US national debt.

Of course, that's why he's on the $100 bill.

 

[Psi Baba]

Another thing people tend to forget is that since we've been able to check credit card accounts online, we can get near-realtime information about what is happening with our accounts. Previously, you mailed in your payment and didn't know anything (unless you called to ask) until you looked at your next statement up to a month later. If your payment was credited, you figured everything was fine. Who knows what went on in the interim? Are different things really taking place now or are we just able to find out about them more easily? Look at how many people still don't know about or understand "pending charges" and "blocked funds" when they book a hotel room or put their card into a gas pump. Before, we weren't aware of this process, but now you've got people looking at their accounts online and panicking over what they think are double charges (when an actual charge and a pending charge overlap briefly before the pending charge is deleted).