This is a (sadly regularly needed) reminder, that N26 does not always behave like a proper bank, but rather like the Fintech startup they like to call themselves. Think twice before getting an account from them.
https://www.handelsblatt.com/finanzen/neobank-erneut-aerger-bei-n26-smartphone-bank-kuendigt-zahlreiche-konten-fristlos/28261718.html
(Article in German, deepl.com’med below)
> The most valuable German fintech is facing new trouble: customers are outraged because their N26 account was abruptly terminated. No transfers, no cash withdrawals: Handelsblatt is aware of 40 cases of users based in Germany who have no longer had access to their account since last Thursday. Twitter also features numerous complaints from customers in France and Italy.
>Customers have received the same letter from the online bank, which states: N26 has found a violation of the general terms and conditions on the account in question. “Therefore, we declare the extraordinary termination of your N26 account.”
>It said the termination was in accordance with the “basic rules for the relationship between customer and bank.” The termination comes into effect with immediate effect, he added.
>Niels Nauhauser of Verbraucherzentrale Baden-Württemberg criticizes: “In the termination letter, N26 refers to a violation of general terms and conditions, but does not inform about which specific violation the customers are accused of.”
>A termination without notice in accordance with the aforementioned general terms and conditions is only possible for good cause, he said. “In the event of a breach of contract, the bank must give its customers a period of time to remedy the situation in accordance with its own GTC,” Nauhauser said.
>In fact, the bank’s terms and conditions include a 14-page document on the subject of “basic rules for the relationship between customer and bank.” According to it, termination “for cause without notice” is only permitted for three reasons: if the customer has made false statements about his financial circumstances, if a significant deterioration in financial circumstances occurs or threatens to occur, or if the customer fails to meet his obligation to provide or increase collateral within the reasonable period set by the bank.
>Among those affected is Alex K.*. He has been a customer of N26 for one and a half years. On Thursday morning he bought a sandwich with his account, he reports. In the afternoon, he could no longer access his account.
>Some customers who were still able to log into their accounts even say that N26 withdrew the entire amount from the account. This is also the case with Lars P.*. On Friday, all of his money had been withdrawn from his account by N26. Then today he received a message from the smartphone bank: his current balance was not enough to cover the upcoming debit.
>Of course, P. must continue to pay his ongoing costs, but there is now no money left in his account as a result of the N26 debit. If the transaction is declined, he will be charged a fee, the message from N26 continues. And if the account then falls into the red, overdraft interest would also be due. It is unclear exactly where the debited money was transferred to.
>In response to an inquiry from Handelsblatt, N26 stated, “It occasionally happens that we have to freeze or close accounts if we detect unusual activity or our terms and conditions are violated. They could not comment on the specific background of closures. However, in the rare cases where they close accounts, they inform the respective customers directly. Only very few accounts were affected by this, the smartphone bank explained.
>In their letter to at least some customers, Neobank also informs that it is currently not possible to pay out the remaining account balance. “Please send us proof of the origin of the funds through appropriate supporting documents.” After that, the bank would “reconsider” paying out the remaining balance.
>The wording suggests that the mass cancellations are related to N26’s attempt to install better money laundering controls. That’s because proof of origin for money is typically required in connection with money laundering and fraudulent account activity.
>”The identical timing, the accumulation of cases even among partly long-standing customer relationships indicate that the termination action is not due to a routine check,” Nauhauser also says.
Translated with www.DeepL.com/Translator (free version)
1 comment
That’s scary. I have an N26 account for years now. I think since it was opened and i was located in my country. I never had an issue. But this frightened me😱