Fidelity HSA - Account Closed (Risk Department)

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
Atgard
Posts: 420
Joined: Wed Apr 09, 2014 2:02 pm

Fidelity HSA - Account Closed (Risk Department)

Post by Atgard » Wed Dec 12, 2018 10:30 am

Hello all, I have a core Fidelity account linked to the Fidelity credit card, I haven't done any trading there. I recently opened a Fidelity HSA, and was in process of transferring my HSA into Fidelity. My account got locked and on the phone the rep said the "risk management department" decided to close my account, but would not give any sort of reason other than very generic "either account activity or adverse info we received." After much prodding, he said it wasn't from a credit report, but adverse info from some other agency. And I've had no brokerage activity (just cash back deposited and every so often swept out). I also haven't had any recent financial changes, bad credit, buying a house or a car, late payments, etc., etc. I've never had an account closed at any other institution.

I was really excited about switching my HSA to Fidelity (and keeping my account for CC cash back). Does anyone have any experience with this and know what type of "adverse info" this could be, how to find out more info (they said I could write a letter to their normal mailbox but I'm not hopeful), or any successful ways to appeal this? The guy said there was just nothing I could do on the phone, no way to appeal, the decision was final, they won't tell me why, and I can't talk to the risk management team. Any help or advice would be appreciated!


Topic Author
Atgard
Posts: 420
Joined: Wed Apr 09, 2014 2:02 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by Atgard » Wed Dec 12, 2018 12:34 pm

forgeblast wrote:
Wed Dec 12, 2018 10:43 am
https://www.facebook.com/fidelityinvest ... 449663298/ might help you.
Thank you for the response. That post seems to be specifically about Fidelity complaining about potential malware on someone's computer that needs to be removed, they definitely did not tell me that. But perhaps contacting whoever runs their Facebook page may help. I was also wondering if visiting Fidelity in person would be any more helpful than by phone.

aristotelian
Posts: 6696
Joined: Wed Jan 11, 2017 8:05 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by aristotelian » Wed Dec 12, 2018 12:41 pm

Could it be a security concern, like too many login attempts? Will they give you a chance to open a new account or clear the issue? Never heard of someone not being allowed to open account.

Topic Author
Atgard
Posts: 420
Joined: Wed Apr 09, 2014 2:02 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by Atgard » Wed Dec 12, 2018 2:51 pm

aristotelian wrote:
Wed Dec 12, 2018 12:41 pm
Could it be a security concern, like too many login attempts? Will they give you a chance to open a new account or clear the issue? Never heard of someone not being allowed to open account.
No, it was on my first attempted login, said your account is locked and call CS. They gave me no option to clear the issue, or even be informed what the issue is. They didn't specifically say I couldn't open a new account, but they did say they were closing my existing account (and will reject my in-process incoming HSA transfer) and where do I want them to send the money to.

Very frustrating, because if there is some error in a credit report or fraud or something, it would be nice to know about it so I could contest it or resolve it or whatever. They refused. To their credit, the CS rep and supervisor stayed on the phone with me for like 45 minutes, but politely rebuffed ANY attempt I made to either find out what the issue is or to resolve it. And I know of nothing that should have triggered this, other than just applying for an HSA. Or maybe they know I won't buy high-ER funds so I won't be profitable for them?

onourway
Posts: 2170
Joined: Thu Dec 08, 2016 3:39 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by onourway » Wed Dec 12, 2018 2:55 pm

Any history of churning credit cards/bank accounts?

Topic Author
Atgard
Posts: 420
Joined: Wed Apr 09, 2014 2:02 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by Atgard » Wed Dec 12, 2018 4:31 pm

onourway wrote:
Wed Dec 12, 2018 2:55 pm
Any history of churning credit cards/bank accounts?
No, I never got into that. No "manufactured spend" or chasing sign-up bonuses. Have had the Elan / Fidelity card for many years, automatically paid in full each month with no issues.

inbox788
Posts: 6698
Joined: Thu Mar 15, 2012 5:24 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by inbox788 » Wed Dec 12, 2018 4:58 pm

I was locked out of an account some years back with similar stonewall. Learned later that the institution had outsourced some risk management to an outside consultancy and they used proprietary information and algorithms to assess risk. Some combination of my information was marked as risky and there was no way to figure out what it was. The solution for me was to open another account with as much fresh information as I could, and limit it to the minimum necessary. It was suggested by one of the customer service representatives and some discussion boards. Unfortunately, in your case, there isn't much information you can eliminate. Were your other Fidelity accounts locked out too? Can you simply apply for another Fidelity HSA and NOT link it to anything? It could be something stupid like the Fidelity credit card itself, which is outsourced to Elan Financial Services that's causing the trouble. There may have been a hack to Elan or to US Bank that they've traced to you or your account or it might even be something more distant not directly related to you (your phone number or address was once shared with someone with a criminal history -- may even be that college apartment you rented many years ago with continuous turnover that's flagging a risk). You're shooting in the dark here trying to find a silver bullet explanation. At best, you might have some possible theories. Anyway, another silly possibility is the opening new account and linking to brokerage that may be a risk to transferring funds out of the brokerage, but the timing of it may be what some hackers have done. If you wait till the account is established a while before linking, you may have better luck. Or you might get locked out again. No way to tell until you try it, but you may not want to. Best of luck!

Bot403
Posts: 9
Joined: Tue Sep 11, 2018 5:48 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by Bot403 » Wed Dec 12, 2018 5:41 pm

Not only can financial institutions close your account for "suspected suspicious activity" as others have said above - but there are specific laws and regulations which very clearly state that you cannot tell the customer why you closed the account - especially around anti-money laundering laws.

Whether the suspicions are true or not - because of the finality be and unwillingness to tell you why - it sounds like they are being bound by the anti-disclosure regulations in place.

Saving$
Posts: 1845
Joined: Sat Nov 05, 2011 8:33 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by Saving$ » Wed Dec 12, 2018 8:41 pm

Bot403 wrote:
Wed Dec 12, 2018 5:41 pm
Not only can financial institutions close your account for "suspected suspicious activity" as others have said above - but there are specific laws and regulations which very clearly state that you cannot tell the customer why you closed the account - especially around anti-money laundering laws.

Whether the suspicions are true or not - because of the finality be and unwillingness to tell you why - it sounds like they are being bound by the anti-disclosure regulations in place.
Wow. This seems outrageous to me. Megacorp and regulation gone amuck.
OP, your post is surprisingly calm. I would be livid. In fact, I'm livid for you and wondering if I still want to proceed with moving my HSA to Fidelity in January...

Topic Author
Atgard
Posts: 420
Joined: Wed Apr 09, 2014 2:02 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by Atgard » Wed Dec 12, 2018 9:47 pm

Saving$ wrote:
Wed Dec 12, 2018 8:41 pm
Bot403 wrote:
Wed Dec 12, 2018 5:41 pm
Not only can financial institutions close your account for "suspected suspicious activity" as others have said above - but there are specific laws and regulations which very clearly state that you cannot tell the customer why you closed the account - especially around anti-money laundering laws.

Whether the suspicions are true or not - because of the finality be and unwillingness to tell you why - it sounds like they are being bound by the anti-disclosure regulations in place.
Wow. This seems outrageous to me. Megacorp and regulation gone amuck.
OP, your post is surprisingly calm. I would be livid. In fact, I'm livid for you and wondering if I still want to proceed with moving my HSA to Fidelity in January...
I am quite angry, and mostly disappointed. Maybe because I'm a geek about this stuff, but I was REALLY excited to move my crappy HSA over to Fidelity (where I already had an account, so it would also streamline things).

TropikThunder
Posts: 1973
Joined: Sun Apr 03, 2016 5:41 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by TropikThunder » Wed Dec 12, 2018 10:09 pm

Atgard wrote:
Wed Dec 12, 2018 9:47 pm
I am quite angry, and mostly disappointed. Maybe because I'm a geek about this stuff, but I was REALLY excited to move my crappy HSA over to Fidelity (where I already had an account, so it would also streamline things).
Are any of your other Fido accounts affected? And if not, if just the brand new HSA-in-process was shut down, that creates more questions than answers to me. If your such a "risk", why would they let you keep your other accounts?

hopefully they don't see this and take more action .... :|

Topic Author
Atgard
Posts: 420
Joined: Wed Apr 09, 2014 2:02 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by Atgard » Thu Dec 13, 2018 10:02 am

TropikThunder wrote:
Wed Dec 12, 2018 10:09 pm
Atgard wrote:
Wed Dec 12, 2018 9:47 pm
I am quite angry, and mostly disappointed. Maybe because I'm a geek about this stuff, but I was REALLY excited to move my crappy HSA over to Fidelity (where I already had an account, so it would also streamline things).
Are any of your other Fido accounts affected? And if not, if just the brand new HSA-in-process was shut down, that creates more questions than answers to me. If your such a "risk", why would they let you keep your other accounts?

hopefully they don't see this and take more action .... :|
They also closed my Fidelity "core" or cash management account or whatever they called it. That's all I had, to deposit the CC cash back into.

I guess I will write a letter and see where that gets me, but my instincts say not very far. I was hoping someone else had some experience with this sort of thing and could make some educated guesses as to what could be causing it or how to best resolve it (letter? call? visit in person? say X, Y, or Z?)

Saving$
Posts: 1845
Joined: Sat Nov 05, 2011 8:33 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by Saving$ » Thu Dec 13, 2018 10:51 am

So are you saying the only existing Fido accounts you already had are
1. Fido Credit Card
2. Fido Cash Management to deposit CC cash back
If so, do you regularly empty the Fido Cash Management account?

I'm wondering if this has something to do with the value of your assets at Fido & the cost to Fido of your current accounts. For example, if you were to offer to move your Roth or tIRA to Fido from wherever, would they reconsider?

SuzBanyan
Posts: 292
Joined: Thu Jun 02, 2016 11:20 am

Re: Fidelity HSA - Account Closed (Risk Department)

Post by SuzBanyan » Thu Dec 13, 2018 12:14 pm

Saving$ wrote:
Thu Dec 13, 2018 10:51 am
So are you saying the only existing Fido accounts you already had are
1. Fido Credit Card
2. Fido Cash Management to deposit CC cash back
If so, do you regularly empty the Fido Cash Management account?

I'm wondering if this has something to do with the value of your assets at Fido & the cost to Fido of your current accounts. For example, if you were to offer to move your Roth or tIRA to Fido from wherever, would they reconsider?
The value of current accounts seems an unlikely reason. I opened an account at Fidelity in 2009 and deposited funds to earn airline miles. I moved all the funds out some time later, but $1.73 was left in the account. My account has remained open with that balance for 9 years until I recently opened and funded an HSA.

Topic Author
Atgard
Posts: 420
Joined: Wed Apr 09, 2014 2:02 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by Atgard » Thu Dec 13, 2018 2:54 pm

Saving$ wrote:
Thu Dec 13, 2018 10:51 am
So are you saying the only existing Fido accounts you already had are
1. Fido Credit Card
2. Fido Cash Management to deposit CC cash back
If so, do you regularly empty the Fido Cash Management account?

I'm wondering if this has something to do with the value of your assets at Fido & the cost to Fido of your current accounts. For example, if you were to offer to move your Roth or tIRA to Fido from wherever, would they reconsider?
Yes, except technically the Fidelity-branded CC is an account held by Elan Financial Services, so it's kinda-sorta not really a Fidelity account (you can log in through Elan directly, or via your Fidelity login).

Yes, I semi-regularly empty the Fido cash account, as I have been for the past 3 years. So I do not keep very much in the account. I also wonder if that is a consideration, since I'm not profitable to them (they'd never admit that's the reason), BUT they are kicking me out at the exact moment I am transferring my 5-figure HSA to them, to be invested in Fidelity funds. So that makes no sense! Their branded CC got me to start doing more business with them, then they said "nah."

I did NOT get the impression they were willing to negotiate if I moved ___ account or $___ in assets over to them.

Saving$
Posts: 1845
Joined: Sat Nov 05, 2011 8:33 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by Saving$ » Thu Dec 13, 2018 6:07 pm

So basically Fidelity is refusing to allow you to be a customer? I understand their decision may be based on sort of law, but are there not also other laws requiring them to serve anyone who wants to be their customer? Or does that only apply if they discriminate based based on a protected status?

DavidRoseMountain
Posts: 175
Joined: Sun Nov 30, 2014 3:27 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by DavidRoseMountain » Thu Dec 13, 2018 10:13 pm

Wow this is superdisturbing since I have a self employed 401k, credit card, and hopefully my HSA with Fidelity.

User avatar
tfb
Posts: 8195
Joined: Mon Feb 19, 2007 5:46 pm
Contact:

Re: Fidelity HSA - Account Closed (Risk Department)

Post by tfb » Fri Dec 14, 2018 12:03 am

Atgard wrote:
Thu Dec 13, 2018 2:54 pm
Yes, I semi-regularly empty the Fido cash account, as I have been for the past 3 years. So I do not keep very much in the account. I also wonder if that is a consideration, since I'm not profitable to them (they'd never admit that's the reason), BUT they are kicking me out at the exact moment I am transferring my 5-figure HSA to them, to be invested in Fidelity funds. So that makes no sense! Their branded CC got me to start doing more business with them, then they said "nah."

I did NOT get the impression they were willing to negotiate if I moved ___ account or $___ in assets over to them.
Risk management has little to do with profitability. Opening a new account triggers risk scanning, against names on the OFAC list, etc. There are false positives but there's very little an institution can do. Otherwise the institution itself can get into trouble with the authorities. They can't teach someone who got a high risk score how they can make improvements to avoid getting caught again. Your best bet is to go to another institution who uses a different set of vendors for this type of scanning, but of course you won't know which vendors they use.
Harry Sit, taking a break from the forums.

criticalmass
Posts: 1407
Joined: Wed Feb 12, 2014 10:58 pm

Re: Fidelity HSA - Account Closed (Risk Department)

Post by criticalmass » Fri Dec 14, 2018 12:24 am

I would wait 6-12 months and try to open a cash management account or HSA again. Even better, do it in person if there is a local office near you.

Do you have any credit or Chex Systems freezes in effect?

Or you could become employed at a company that offers a Fidelity retirement plan. :)

amitb00
Posts: 482
Joined: Sun Jan 01, 2012 9:04 am

Re: Fidelity HSA - Account Closed (Risk Department)

Post by amitb00 » Sat Dec 15, 2018 5:07 pm

Does anyone sharing your last name and address may be having a criminal record? Does anyone have a foreign address? FInancial Institutions avoid dealing with such folks.

Post Reply