Did you know your bank can dump you?

Wells Fargo Bank
Wells Fargo Bank

Did you know your bank can break up with you anytime that it wants?

And we’re not talking about if you bounce checks or commit fraud.

Bank customers who actually engage in illegal activities: they’re the easy ones to get rid of.

But there are a whole lot more people who fall into a gray area.

The government urges banks to close some of those questionable accounts, or risk getting hit with penalties.

One banking industry expert says that if a customer is involved in an industry considered to be high-risk, or an “unsavory” line of work, the bank may decide it’s safer to just end the relationship.

The FDIC lists 30 business categories that fall under this umbrella including gun sellers, payday lenders, dating and escort services, fireworks suppliers, gambling websites and many more.

So how do you avoid scaring your bank into shutting you down?

For a business, make sure you give a clear description of your company when opening an account.

For individuals, have a full record of past employment, and open your account in the city where you actually work or live.

The bank still reserves the right to break things off at any time.

But if you’re as transparent as possible, that should help avoid raising any red flags.

Full list of FDIC high-risk activities:

  • Ammunition Sales
  • Cable Box De-scramblers
  • Coin Dealers
  • Credit Card Schemes
  • Credit Repair Services
  • Dating Services
  • Debt Consolidation Scams
  • Drug Paraphernalia
  • Escort Services
  • Firearms Sales
  • Fireworks Sales
  • Get Rich Products
  • Government Grants
  • Home-Based Charities
  • Life-Time Guarantees
  • Life-Time Memberships
  • Lottery Sales
  • Mailing Lists/Personal Info
  • Money Transfer Networks
  • On-line Gambling
  • PayDay Loans
  • Pharmaceutical Sales
  • Ponzi Schemes
  • Pornography
  • Pyramid-Type Sales
  • Racist Materials
  • Surveillance Equipment
  • Telemarketing
  • Tobacco Sales
  • Travel Clubs

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