Anyone Getting Emails from ING Closing Their Account?

zrmx on 10/05/2022 - 13:09
Last edited 10/05/2022 - 22:37

Anyone getting emails or contacts from ING about closing their accounts suddenly out of nowhere?

A mate queried me about it and I thought he was getting scammed. But apparently he called them and said it was genuine and they couldn't tell him any reasons except his account will be closed next month.

Anyone getting similar experiences?

EDIT: He sent me a bit of screenshot of the email: https://imgur.com/a/y8Q8l6T

"We are writing to you to inform you that after an internal review, we have made the decision to close your account/s listed below. This will be done in accordance with our policies and your account terms and conditions. We apologise for any inconvenience this causes."

He said he mainly uses the accounts for the bonus interests and do the 5 transfers monthly with 1c transactions, so the account isn't being closed for inaction.

Makes me wonder if they are closing his accounts as they aren't making enough money 😂 (and got me bit worried as I do the 1c transactions too haha)

EDIT 2: It isn't about KYC, his KYCs have been done "months ago".

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Comments

  • silenthillrocks on 10/05/2022 - 13:41

    Has the account had no transactions for over a year?

    • zrmx on 10/05/2022 - 13:44
      +1

      That wouldn't be the case I'd assume, as he also do transfers to meet the ING requirements for bonus interests.

    • Kyle-K on 10/05/2022 - 17:33

      That's a different email.

  • sjj89 on 10/05/2022 - 14:04
    +7

    They’re closing his accounts for operating on the edge of one of their offers.
    Well within their right to do so

    • team teri on 10/05/2022 - 14:17
      +9

      Well, they always have the right to do so, agreed.

      Operating close to the edge of their offers isn't a good reason though. A much better option and lots less personally offensive: simply change the requirements to something they are happy with having people 'only just' meet them.

      • Mulga Bill on 10/05/2022 - 14:36
        +4

        I am on Team Teri, updating the terms and conditions would make more sense.

        Working for a couple different banks and I have only ever seen a forced closed account when there has been questionable transactions (money mule, laundering etc) or when customer has abused staff in branch or over the phone.

    • burningrage on 10/05/2022 - 15:54

      What does "edge of one of their offers" actually mean? Sorry to ask. I am really curious.

      • rickb on 10/05/2022 - 17:00
        +3

        Not operating within the spirit of the offer. For example here - the client is making 5 x 1 cent transactions every month to get the bonus interest on their savings. account. Typically the bank intended for the transactions to be more legit like actually buying stuff.

        • gyrex on 12/05/2022 - 12:25

          You do realise that many years ago there were no ridiculous hoops to jump through to obtain their interest rates? In fact, there were no 'bonus interest' rates, just a competitive offer which they've whittled down over the years and made their customers jump through various hoops while juggling plates…

  • moar bargains on 10/05/2022 - 14:11

    I got an email saying they're going to close my accounts due to inactivity. I switched away from them when they started adding all the extra hoops for the bonus interest stuff.

    I'm torn about letting it go or just reactivating it by a transfer in and out. It doesn't really offer me anything that my other accounts don't…

    • silenthillrocks on 10/05/2022 - 15:38

      I got the same and just transferred $1 in and out with osko

      • moar bargains on 10/05/2022 - 21:01
        +1

        Yeah, I could do that, but I don't know if I can be bothered 🤔

  • nubix on 10/05/2022 - 15:53
    +1

    my account is getting closed, no attempts at exploits - actually been using the debit card for groceries, getting salary paid into it, on the verge of 10 years with the account.

    thanks ing

    • zrmx on 10/05/2022 - 20:03

      Did it have similar wordings? With no explanation of reasons?

      Now I feel it doesn't matter if I start using my account with more than just the 1c transactions for interests lol.

      • nubix on 10/05/2022 - 21:07

        yeah, most likely exact email.

        my account was frozen a few years ago due to KYC inaction but that had been all done then

  • bengal tiger on 10/05/2022 - 16:10
    +5

    ING have sent me a few emails over the last few months asking me to complete the My Profile section that includes citizenship and sources of income, all part of Know Your Customer requirements. If I didn't complete it within 6 months they would close my account.

    Were your mate's email notifications on? Did he check and read all the ING emails received over the last year?

    • Kyle-K on 10/05/2022 - 17:37

      Came here to exactly say this.

      I believe based on comments we've seen elsewhere on the Internet a lot of people refused or did not complete this request and then now having their accounts closed.

    • zrmx on 10/05/2022 - 20:04

      I've got no idea. I got KYC emails and I've done them too. Hmm…

    • zrmx on 10/05/2022 - 22:38

      He just updated me his KYCs were done "months ago" already, so not about KYC =S

  • KBZ on 10/05/2022 - 17:51

    I believe the biggest change they are doing is their Bank Accounts are now only for Australian Tax Residents. I've seen a few peoples accounts get closen for this reason.
    And also like @benegaltiger if people aren't doing those KYC as part of AML probably closing people down for non compliance.

    • zrmx on 10/05/2022 - 20:07

      He's a citizen so I'm assuming that's Australian tax resident right?

      Although I find it strange if the bank just want KYC they'd be able to help getting the KYC materials done when he contacted ING, unless if ING just doesn't want him/rather lose the customer.

      • KBZ on 11/05/2022 - 22:28

        Yeah I know someone who's reason they gave was they were no longer offering to non Australian Tax Residents which was disappointing considering they were with ING as a non tax resident for a long time.

  • burningrage on 10/05/2022 - 20:34
    +2

    It's absolutely ridiculous banks are allowed to get away with so many unjust treatment.

    1. If they refuse you credit card/home loan, they don't need to tell you why and it took a newspaper to tell the general public to explain the reason for this is to ensure people don't change their behaviour (which is a stupid logic, if they don't change their behaviour, they will never get a credit card/loan, of course they need to change their behaviour such as less expenses or earn more)

    2. If interest rates go down, they don't pass or pass less. If it goes up, they pass it lightning speed and put up excuses like "We understand things are difficult, we are here to support you". It's almost so tokenistic and hollow.

    3. And now they close down accounts without telling why. All these speculation about Australian Tax Residents thingy could well be right or wrong. Why can't they just tell the reason?

    • techlead on 10/05/2022 - 23:12
      +1

      I think its obvious why. The guy is doing the absolute minimum to qualify which is not in the spirit of their offers. To a reasonable person, "using the card 5 times" doesn't mean 5 payments of $0.01 even though it is correct literally.

      It appears that there has been enough abuse that ING deems it necessary to do this compliance blitz to cut dead weight from their customer base. Like the cash out bonus of $0.50 when you withdraw more than $200 with eftpos. I did it once a day, but I'm sure there were heaps of people that were milking it as much as possible. I'm sure those people got closed down too.

  • techlead on 10/05/2022 - 23:09

    I think this is related to my post, https://www.ozbargain.com.au/node/697842

    I received a text for me to contact them. I sometimes do the $0.01 transactions. I actually do use the card, to fund my crypto.com card once a month and other low value (under $10) transactions, however I do $0.01 transactions to make up the rest.

    I think if I call them, I will get an earful or a warning about the $0.01 transactions. I do end up using the card more than 5 times a month on most months, so I don't think I'm that much on the edge of their offers.

    • zrmx on 10/05/2022 - 23:29

      Not sure, he hasn't mentioned about any SMS, but just emails, even after he called them.

      Your case seems to be more specific about the usage of the VISA card, rather than full accounts?

      • techlead on 10/05/2022 - 23:35

        Yes, it appears to be the case. The text says VISA card specifically, but there are similarities in the way your mate and I use the account.

        I'm very sure they are not happy about the $0.01 transactions.

        In my case, its definitely not about fraud because I don't have many transactions on the VISA card, under 10 for most months.

        • zrmx on 10/05/2022 - 23:46

          Have you contacted them though?

          I'd guess the text might be more concerned about security of your VISA card usages, as you've mentioned about using it for crypto related activity (?), which to me raises a red flag for security that someone at the bank may want to make sure it hasn't been stolen to fund crypto.

          • techlead on 11/05/2022 - 07:03

            @zrmx: I've been doing that for years, unlikely its a security/fraud issue. Its definitely because I'm doing near the minimum to get their benefits.

  • MontyMacaw on 11/05/2022 - 12:31

    ING has been the target of money laundering. They made it too easy to open accounts with too little accountability. I know they have changed their criteria. Easier to close accounts than run the risk of huge fines from the ACCC. Or it could be something else altogether.

  • jackspratt on 11/05/2022 - 13:58

    Yep - I am in the process of being closed down.

    I have/had 2 T/Ds with $100k+, and have been a client since 2006. I have responded to all their KYC requests, and passed.

    I am an Oz citizen, but resident overseas, and that was their excuse.

    Other than them being arseholes, it probably comes at a convenient time for me, as the window for moving cash into super due the the Work Test rule changes starts on 1 July.

  • yasocato on 11/05/2022 - 15:40

    Had the same email sent to me yesterday. Have been a customer for almost 10 years and been using the account for everyday transactions. I recently transferred money via Western Union to my family in Dubai. Could this be the reason?

  • Waltervp on 11/05/2022 - 19:53
    +1

    I had enough of their BS a year ago or so. I left them. Admin couldn't solve the simplest of issues, too frustrating dealing with them.

  • TilacVIP on 11/05/2022 - 23:16

    On top of all this they now require their Business Optimzer account to have a minimum balance of $50k and giving you a paltry 0.1% interest.

    They can F.R.O.!!!!

    Best bank a while ago, and now probably the worst.

  • JIMB0 on 12/05/2022 - 10:55

    I got the same email. Haven't used the account much since they discontinued the 50c cash out bonus. Just left a few cents in the account so they have to mail a cheque.

  • gyrex on 12/05/2022 - 12:23
    +3

    I received this email today: https://imgur.com/io7ArZO

    I was one of their first customers when they opened in Australia in 1999 and advised many family and friends to join over the 22 or so years I've been a customer. What a slap in the face and their unwillingness to provide any meaningful explanation for why the account is being closed is disgraceful.

    I do the 5x 1c transactions at Coles every month in order to satisfy their ridiculous policies and add 1c to my Savings Maximiser account every month to satisfy the requirement of growing the account.

    Can someone provide an alternative who offers the fee free ATM (domestic and international) withdrawals and have similar features to ING? I don't really withdraw much cash these days but I do travel a lot so the free international withdrawals are helpful.

    I'm so angry about this! Is it worth our time to go to the media?

    Edit: I'm an Australian citizen (born here) and did my KYC years ago.

    • zrmx on 12/05/2022 - 12:29
      +1

      Well like others have mentioned above, they are within their rights to close the accounts, even if a crappy move, so not sure how much of a story it is. (I can foresee that I'll probably get the close account email soon too)

      See https://www.ozbargain.com.au/wiki/cards_with_no_overseas_tra… for other debit card options.

      • gyrex on 12/05/2022 - 12:32

        Thanks for the link mate, really appreciate it.

        I appreciate that they're a business and can service whatever customers they want but it's a grubby move to do it to customers who've been with them for 22 years and when I called them they were unwilling to provide any meaningful explanation other than reel off the ambiguous nonsense in their email.

        • zrmx on 12/05/2022 - 12:40
          +1

          I agree with you 100%, hence I can only guess ING has done its analysis and figured the loss of the customers it culled will be less than the costs of keeping them (although I don't know if they've considered the loss of good wills too).

          Looking at the international ATM withdrawal options, looks like the combination of Citi & HSBC will be the next best thing. I'm assuming quite many of the OzBargain community would have the HSBC account already for the 2% paywave cashback, while the Citi account is quite well known already, so shouldn't be difficult for many to have both. Just a slight hassle to carry one more card while away, but they live in a wallet anyway.

  • gyrex on 12/05/2022 - 12:45

    If anyone is looking for a Savings Maximizer alternative, AMP Bank are offering the same 1.35%: https://www.amp.com.au/banking/info/p/amp-saver-account

  • tim_geo on 26/05/2022 - 15:07

    Got the emails too, although I don't make many transactions. Not exactly dormant, but not exactly living at the edge of their requirements either. I think there is an average cost of compliance for all these open accounts that aren't making them big bucks, they are just trying to be "sharp" with their business model. Time will tell the cost of pissing off their customers, some have been with them right from the beginning.

    Someone else I know has a home loan account with them, they have really sharp new customer rates and almost silly (absurdly high) rates for existing customers (after a fixed rate finishing). So ING prolly want more profitable account like that. That customer will be refinancing when they get around to it and never coming back, but I imagine plenty of other customers who will stay for them to make the profits. So could be really enticing for management to see they make the lion share's profit from a small proportion of accounts, while other accounts make virtually nothing, and occasionally get them in trouble (KYC etc).

    • zrmx on 26/05/2022 - 15:09

      Sounds like the most probable situation so far.

    • gyrex on 26/05/2022 - 15:22

      Looking at their mortgage rates, they were making an easy 1-1.5% on my $100K sitting in the savings maximizer or $1000-1500 per annum. The fees and any advantages I may have had by having a transaction account with them would have been negligible. I maybe made 10 ATM transactions per year. The thing that peeves me off most is that I was one of their first customers in Australia.

      Anyway, I've moved to Macquarie Bank.

  • clover on 26/05/2022 - 20:35

    They are doing sth similar in France: https://www.connexionfrance.com/article/Practical/Money/Onli…

    Though I doubt they plan to sell their retail banking book

  • T-man on 29/05/2022 - 16:21

    And they are still calling themselves “the most recommended bank of the year” 😂 , I left them years ago when they removed all their cashback programs (5% then 2% then nothing on paywave transactions, 1% cashback on homeloan repayments, and 50 cents cashback on cashouts)

  • JIMB0 on 24/06/2022 - 18:33

    Finally got my outstanding balance back after they closed the accounts. The cheques come individually mailed for each account for a total of 4 cents. Might keep them as souvenirs.

  • wilko23 on 20/12/2022 - 17:46
    +1

    Looks like they are up to their account closing games again… I got the email today, I actively use my accounts with a couple of grabs going each way every month… When I called they refused to give a reason… Great timing at xmas!

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