The European Consumer Center warns about the drives of certain nobanks which take advantage of the obligation to monitor their customers’ transactions to block or even improperly close accounts.
As legal action begins today against the nobank N26, accused of abusive blocking of accounts, the latter is hiding behind its obligations in the fight against fraud.
The European Consumer Center (CEC) recalls that in Europe, banks, nobanks and other payment services have the obligation to know their customers and to monitor their transactions in order to combat money laundering and the financing of terrorism.
Verifications that can be expensive
Thus, when a client wants to open an account in the European Union, he is asked to provide proof of identity and address. Some banks also ask for proof of income. In case of doubts about the origin of the funds or the identity of a client, the banking establishment is obliged to refer the matter to the national authority where it is located (Tracfin in France, BaFin in Germany, etc.)
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Problem, some nobanks take advantage of the verification period to block the money, even to close purely and simply accounts. Unacceptable practices for consumers who, overnight, can no longer have their money, notes CEC France.
N26 co-founder admits mistakes
If you are a victim of these methods, the CEC, which can be contacted for any questions, puts forward several possible remedies. First, call on your bank’s mediator. Since 2015, Europe has imposed mediators in all sectors consumption. Secondly, it is possible to lodge a complaint with the financial dispute resolution network FIN-NET if your financial service provider is established in another EU country, Iceland, Liechtenstein or Norway.
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