Monday, February 22, 2010

Citigroup Warns Customers It May Require Seven (7) Days Advance Notice to Withdraw Money from Checking Accounts


Is this report an omen pointing to bad things ahead in the banking industry? Is the long-rumored bank holiday going to finally happen? Well I don't know what is going to happen, but I do know that Citibank has issued a notice effective as of April 1, 2010 stating that it may refuse to allow a customer to withdraw monies from checking accounts for up to seven (7) days.

"Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change," Citigroup said on statements received by customers all over the country.

The above picture shows the official Citibank document and if you check out page 23, you will see the above image. Supposedly, this statement was made pursuant to required federal regulations, so for some reason, the government feels it necessary to communicate the above statement and potentially require a 7-day notice for all checking account withdrawals.

My question is "Why?"


Source: The Business Insider


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