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It appears that the DOJ has determined that legal businesses that they don't like should be deprived of all financial (banking) services. That means that you would have to run these businesses without a banking account, check cashing services, accepting credit cards, or any form of credit. Not only are the businesses being hit, but the private accounts of the owners and their spouses are also being closed.
Here is a partial list of the type of businesses that are being targeted:
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
Some of these are understandable, but others are immoral but legal businesses. Even worse several are neither immoral or illegal.
The FDIC is not 'cracking down' on legal businesses they do not like. Rather, it is an advisory to member banks (concerning regs first published in 2008) concerning the rising risk of fraudulent transactions in 'high risk' areas, such as telemarketing, online gambling, etc.
From my reading, it appears the FDIC is urging such financial institutions to be more vigilant in guarding against these fraudulent transactions, noting, for example, the high-pressure telemarketers who obtain financial information from a person (for what the person believes is a legitimate purpose) only to charge excessive rates on the person's bank account, until such time as they 'fold up the tents' and move on, to create another such operation using another bank as a conduit for obtaining the customer's funds.
From the FDIC link:
"Generally, high-risk transactions occur when the consumer does not have a familiarity with the merchant, or when the quality of the goods and services being sold is uncertain. Activities involving purchases made over the telephone or on the Internet tend to be riskier in that the consumer cannot fully examine or evaluate the product or service purchased. Similarly, the consumer may not be able to verify the identity or legitimacy of the person or organization making the sale".
Again, I see nothing to indicate that this is a 'crackdown' on legitimate business.
It appears that the DOJ has determined that legal businesses that they don't like should be deprived of all financial (banking) services. That means that you would have to run these businesses without a banking account, check cashing services, accepting credit cards, or any form of credit. Not only are the businesses being hit, but the private accounts of the owners and their spouses are also being closed.
Here is a partial list of the type of businesses that are being targeted:
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
Some of these are understandable, but others are immoral but legal businesses. Even worse several are neither immoral or illegal.
Seems they are primarily going after the Payday lenders. Those business's are about as low as you get but they are legal. If they are allowed to go after one business they don't like it's pretty much open season isn't it?
Seems they are primarily going after the Payday lenders. Those business's are about as low as you get but they are legal. If they are allowed to go after one business they don't like it's pretty much open season isn't it?
If these businesses do not have bank accounts......how will the government know their income????
I noticed the fireworks listed, my fireworks guy takes cards but you're going to pay full price. He only wants cash. That said if you are going to run a business it's almost impossible without a bank account in the business's name.
I noticed the fireworks listed, my fireworks guy takes cards but you're going to pay full price. He only wants cash. That said if you are going to run a business it's almost impossible without a bank account in the business's name.
I would take personal checks made out to me.
Some make the checks out to me anyway.....still they have to go in the bank.
Our supplies would take cash or, money orders and love it too.
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