Friendly reminder - watch your bank/credit cards when posting up ANYWHERE

[djefferis]

So got a nice letter from Navy Federal Credit Union - basically telling my account was now closed for “abusive activity and violations of the NFCU member services agreement” .

The abusive activity - from what I can see it was a $500 deposit to DraftKings last year. I never use my account there - and only activity was a deposit to DK a year ago on my credit card.

So either they have decided to close my account based on this solely going into football season this year - or my name has hit a SAR (suspicious activity registry) somewhere and is being flagged by every financial institution. Given I have no problems anywhere else - I’m going with the former.

Many banks like CapOne don’t allow gambling transactions - even legal ones. Guessing we can now add Navy Federal to that list.

 

[Tanko]

That sucks.....
That happened to my dad as well back in the day (years and years ago). CC company killed his card he was using to deposit of-shore.

 

[Tanko]

Djeff, DK is legal in Ohio so why the issue with Navy Credit Union?
They shouldn't be doing this.

 

[Wagerallsports]

I know this was the case with many banks before legalization

But if a state is legalized, it should not be happening and any such bank should be notified

 

[BobbyFK]

It would be different if they didn't allow the transaction to go through but they allowed it to go through and now almost a year later they flagged your account? Something sounds fishy

 

[djefferis]

Yep a year later and a relatively small amount (5% of credit line).

Usually only use it when I get promotional APR - I had actually left it on PayPal and deposited to make a live bet during NFL.

It’s legal - but just like CapOne - they don’t care. The block you from using it to buy lottery tickets and other “gambling” activity.

Never got any notice they rejected the charges - just that they closed the account. Why they didn’t just close the account and not use this excuse I’ll never know. They could have just done that and not left themselves open for a huge fight. Someone is going to get pissed and file a class action against them for improperly harassing customers engaged in legal activities.

I mean where does it stop - saying you can’t use your credit card for gambling, porn sites or liquor stores ? Dispensaries already have enough issues with banks I know. Someone is going to call their BS and file a class action.

 

[jjgold]

Don’t ever use a card.

 

[djefferis]

Don’t ever use a card.

Offshore I agree for MANY reasons.

But using an app with PayPal - that’s getting to an extreme.

How long until they restrict crypto/precious metal purchases or calll them cash advances (if they don’t already).

Card companies have long banned gambling merchants and purchases from gun stores/weapons purchases as the percentage of chargebacks is astronomically high and fear of getting drawn into a civil case for facilitation of purchase of a weapon used in murder.

This is the reason why crypto is going to take hold within the next decade or so - eventually people will get tired of the loss of liberties. Right now credit cards are the default for 2 reasons - convenience and rewards. Of course both of those come at a cost - but consumers believe falsely that “someone else” is paying those fees.

Imagine the price of gasoline going down by better than 20 cents a gallon when crypto becomes the standard for pay at pump. It’s entirely possible if you ditch the 3%+ credit card fees.