Novel Bank Have Started Closing Accounts

[Au999]

So, Novel bank changed their banking partner a few weeks ago - and now inevitably - they're de-risking and closing foreign owned accounts (which was the whole point of Novel)

Sure enough got my email last night (infuriatingly AFTER they'd taken their annual premium fee for 2024):

Your Account Has Been Closed

Unfortunately, we've decided to close your Novel account. We can't share any additional detail at this time but we've outlined details below on the account closure process.


Any outstanding balance in your account after account closure will be sent via mailed check.


By default, checks are sent to the business address on file. However, if you wish to have the check sent to an alternate address, we require proof of address verification for the new location under your name or company name. This request is subject to approval by the bank.


If you haven't received your check within the expected timeframe, it's possible that it may have been returned to the sender. If you suspect this has occurred, please reach out to us at [email protected] eight weeks from the original shipping date, and our team will investigate the matter further.


Regards,

Novel Team

Just to add, we only ever had money in from our 4 main US clients, all blue-chip big name companies and money only ever went out to two of my company accounts. No weird transactions, no crypto, nothing sketchy.

 

[alain]

Sure enough got my email last night (infuriatingly AFTER they'd taken their annual premium fee for 2024):

how much is the fee?

 

[Au999]

how much is the fee?

was something like $500. Not annoyed with the amount, more the principal LOL

 

[alain]

was something like $500. Not annoyed with the amount, more the principal LOL

I understand say they have 1000 customers or more it is 1000 x 500 = 500,000 I would say it is good business.

 

[Au999]

I understand say they have 1000 customers or more it is 1000 x 500 = 500,000 I would say it is good business.

Exactly.

 

[Alexmorgan]

Its scary that we are running out of options

This way the companies that formed in US

 

[Martin Everson]

So, Novel bank changed their banking partner a few weeks ago - and now inevitably - they're de-risking and closing foreign owned accounts (which was the whole point of Novel)

Sure enough got my email last night (infuriatingly AFTER they'd taken their annual premium fee for 2024):


Just to add, we only ever had money in from our 4 main US clients, all blue-chip big name companies and money only ever went out to two of my company accounts. No weird transactions, no crypto, nothing sketchy.

lol...send a "check" is this 2024 or 1924? I know that's probably normal in U.S but I have not seen a check in decades. A check will also limit your deposit abilities with future EMI's and fintech banks.

 

[Forester]

lol...send a "check" is this 2024 or 1924? I know that's probably normal in U.S but I have not seen a check in decades.

Unfortunately (as of today), it's still quite normal there. TBMK.

A check will also limit your deposit abilities with future EMI's and fintech banks.

Very true

 

[cristiansilva33as]

So, Novel bank changed their banking partner a few weeks ago - and now inevitably - they're de-risking and closing foreign owned accounts (which was the whole point of Novel)

Sure enough got my email last night (infuriatingly AFTER they'd taken their annual premium fee for 2024):



Just to add, we only ever had money in from our 4 main US clients, all blue-chip big name companies and money only ever went out to two of my company accounts. No weird transactions, no crypto, nothing sketchy.

Can you share the country of your nationality? Maybe it has something to do with their new banking partner that doesn't allow it.

 

[Au999]

Can you share the country of your nationality? Maybe it has something to do with their new banking partner that doesn't allow it.

UK National - I know the UK is losing a certain amount of respect globally but don't think it's THAT bad yet

 

[daniels27]

lol...send a "check" is this 2024 or 1924? I know that's probably normal in U.S but I have not seen a check in decades. A check will also limit your deposit abilities with future EMI's and fintech banks.

Yes, they still do this all the time. I recommend scanning the check, changing the name on it and then deposit into your personal bank account with BofA or similar App. It is a certified check, so it normally works. But really, if at least they could inform you one month in advance, you could get the money out easier.

 

[csp dubai]

that same same tactic of duabi banks theu close your account than they send you a useless piece of papar , and money stay in their belly , usual tactic from banks with liquidity problem

 

[daniels27]

that same same tactic of duabi banks theu close your account than they send you a useless piece of papar , and money stay in their belly , usual tactic from banks with liquidity problem

Yes, but please be reminded that in the US, the banks cannot keep the money. They have to transfer it to the State. It is a big part of the State finances. I had more than one friend whose $400 bank account got closed due to inactivity after they have not used it for 4 years. You can then claim the money from websites such as Unclaimed Property The deal is then that it takes you about 10 hours to get the paper work to get the money back.

 

[JackAlabama]

that same same tactic of duabi banks theu close your account than they send you a useless piece of papar , and money stay in their belly , usual tactic from banks with liquidity problem

not only dubai banks do this, also i know of others banks.
There are also specific reasons when and why they do this to you.

Its highly ridic given that banks often play dumb af and want you to visit their precious branch in a far flung place, if you want to close account by yourself and they pull out every trick by the book instead of just sending you a check with the remaining 50bucks balance and close the account.
Instead the account remains semi-operational or even open for years.

 

[jafo]

not only dubai banks do this, also i know of others banks.
There are also specific reasons when and why they do this to you.

Its highly ridic given that banks often play dumb af and want you to visit their precious branch in a far flung place, if you want to close account by yourself and they pull out every trick by the book instead of just sending you a check with the remaining 50bucks balance and close the account.
Instead the account remains semi-operational or even open for years.

I use the bank monkeys' greed against them.

I create POs from a client and then an invoice from the supplier. The bank monkeys are greedy and seeing I will wire 6 or 7 digits and they will get 8 digits later for them to "embezzle" through bank financial instruments with huge commissions for their benefit, fall for it hook, line, and sinker.

I wire the money to the supplier. The client already knows NOT to wire to the aforementioned greedy bank.