AARGH! I've spent half the afternoon on the phone with my bank in the US. I very carefully set up automatic payments for all my credit cards, and I transfer money into my US account on a regular basis.
I received a call today from my credit card company saying that my payment had been declined, which was odd as there was plenty of money in the account. So I called my bank to see what was up.
Apparently they've flagged the account as 'dormant' despite regular monthly payments into and out of the account (all automated or electronic wire transfers). Their explanation: I haven't conducted a branch transaction in so long that they've put the account into dormant mode.
Which is particularly irksome because the *charge* for each time I visit the counter. So it's in my interest not to visit a branch.
The kicker: to get my account unfrozen, they want me to go into a branch to sign a document. Which is a little tricky when the branch is 3,000 miles away.
When are American companies going to learn how to deal with overseas customers (and yes, in this case, American companies are by far the worst!)
Lesson learned: make sure that when you automate your life, you don't automate yourself into dormancy!!!
I'd heard horror stories of "spontaneous account closings" after banks received changes-of-address to overseas locations. Knowing that I'll be moving to Switzerland in a few weeks, I checked with my primary bank and was assured there would be no problem if I performed at least one "counter transaction" per year. I was assured that a paper check deposited by snail mail would be sufficient...
My plan was to wait a couple more weeks, then re-submit the same question via email to customer service. Better to have it in writing...
Which bank? Lots of us are in a similar situation.
Edit:
My husband's 401K is still in the U.S. (he had enough he could leave it there when he left that company). They will/can not accept an international address for statements.
I worked a summer in the US end of the 90's and I had to open a bank account... When I left I kept it, changed the address to my native country Sweden without any problems. I closed the account some years ago since I never used it. I had about 10 USD on it and getting monthly statements for years...they spent more on postage than that.... But anyway for this bank, I think it was Key Bank, didn't have any problems with overseas residents.
Just thought I'd point out that this issue is very recent... new banking regulations thanks to those world-destroying Terrible Ts: Terrorism and Tax evasion
That's awful. Why not mention the name of the bank to warn other expats?
Also, we have discovered that credit unions in the US are far more consumer friendly and (knock on wood) we haven't encountered any problems while living abroad.
If you can keep a US address while you are living in Switzerland there should be no issue re: possible homeland security infractions. Also, like I mentioned before, credit unions and some local banks have, according to my research, lower fees and less silly rules. Some even offer use of your debit card abroad without "foreign currency-exchange" fee which is typically 1-2% and you can also take cash out of any ATM without a charge (sometimes I had trouble doing that even in the US). Another huge benefit is that when you call these branches it isn't unusual to talk to an actual person that works there and you may have met before.
Many thanks for the warning! I live in New Hampshire but still bank in Boston. Almost all of my cash withdrawals are by debit card from supermarkets. I will make it a point of using my bank's ATM machines whenever I am in Boston (I know, going to Boston from NH is easier than traveling from Switzerland!).
Visit the website of american citizens abroad. They are tackling this issue of banking problems right now in Washington and are building up a case file on it.
I have had 500 francs sitting in the Banque Cantonale Vaudoise for 20 years. It is the remnants of a deposit on a flat which I made with an old boyfriend. It is in both our names.
They will not give me the cash without his signature or a letter from him giving me access to the money. And they only contacted me a couple of years ago about it.
I have not seen nor heard from the guy in at least 15 years.
I have a US account with Chase. Every year they send me a letter to sign a document to keep my account active. They also reactivated it on the phone just two weeks ago, because I did not get my letter last year. They also send me a visa debit card and let me activate that 6 months after sending it so that I could use that in the last couple of weeks. THen when I sent that to someone to bill it, it did not work. When I called them back they said, well it was because of the 3000 dollar limit. (The charge was 5,000) On the phone they offerred to increase my limit. I just left it and asked the company I bought a service from to bill over two days. Which worked just fine. My only complaint, the outside US number on the back of my card (at least they have one), was stamped with my name through to the other side, so it was quite difficult to read, but through trial and error I figured it out. Maybe they will open an account with you over the internet or the phone. I think they are quite good for a US bank.
Very true, happens with all banks, Deutsche Bank in the U.S. locks accounts all the time. The next step after dormant status, is escheating. All dormant accounts are bundled into a sum amount and notice is sent to the local Secretary of State and the bank takes the money. This list is processed by a third party agency who then waits until the owner calls.
My business partner is a freelance management consultant who would open accounts at different cities when she received checks while conducting seminars. She was horrified to return two years later and find one of the accounts had been turned over to the state. She immediately consolidated the accounts, but it has been 4 years and she still has not received her $5600 held by Deutsche Bank. She is a client of DB Germany, but that makes no difference!
Took me a moment to realize we may be discussing a couple of different scenarios here:
1) An American overseas with an account in the USA. The overseas American is regularly using the account for deposits and purchases albeit exclusively electronically from another country.
2) A citizen of country X (or a frequent visitor to country X) that has an account in country X but hasn't used it in a LONG time.
I believe the OP was discussing scenario #1, a situation which I will also be in shortly. It's actually not illegal, but I've been told the paperwork requirements for establishing customer identity have increased to a point that many U.S. banks simply close the accounts when you submit a change of address to an international location. Again, research and hearsay, not experience.
Other banks eventually deem the account "dormant" if your only activity(ies) is/are electronic ones from a remote location. The OP appears to have fallen into this category.
I've been doing business with a local bank that has twice assured me that if I do a paper (bank employee referred to it as "counter") transaction at least once per year, e.g. countersign a paper check and mail it in for depositing in my account, then my account will never be deemed "dormant." This is in addition to all the electronic paying of bills and such that I'll be doing.
I agree with another poster that stated credit unions would probably be much more accommodating (though I haven't verified that.)
Regarding scenario #2, I suffered that a few years back with Commerzbank (I *think* that was the bank)... left Germany with an account having just a couple hundred dollars in it. It happily sat there for, I think, 3 years with no transactions, charges, fees, anything. Then one day, CB decided it was "dormant" and started charging an exorbitant monthly fee that basically drained the account in 4 months. Certainly taught me a lesson...
Any of the above could be incorrect and I welcome input.
The OP might want to open an account with (brokerage house) Charles Schwab bank. There aren't branches, so only electronic transactions are expected. They also offer a VISA card.
One note of caution -- some states (like my former, Maine) will use continued use of an in-state bank as evidence that you are planning to return and so will tax you on all income as a resident of that state still.