Charles Schwab won't let us open an account

[mikesump]

We have been full-time RVers now for 2 years and utilize Escapees address and mail forwarding services in Livingston, Texas. This address has sufficed for Vanguard, Fidelity, Chase Bank, and our federal income taxes. We have spent the last month trying to open a Charles Schwab brokerage account so we could use it to open a Schwab bank account, which is highly recommended for international travel as you don't have to pay currency conversion fees.

We have run this pretty high up the flagpole and authorized them to run a credit check, which should convince them that they want us (and the other 250,000 full-time RVers) as customers. But they want a utility bill with our name and a street address and have refused to yield.

Can anyone offer any advice?

[motorcycle_jack]

Great info. I would think the "another contact individual" could the mail forwarding service. But the bureaucrats at Schwab may be like bureaucrats everywhere - often unable (or unwilling) to think.

Clay (WA5NMR), Lee (Wife), Katie & Kelli (cats).

A letter from a lawyer suggesting legal action as they are violating US Banking laws and Patriot Act by their internal audit requirements MIGHT do the trick. Also sending a letter to the states attorney general complaining of unfair practices under 31 CFR 103.121 might also give them some impedes.

BUT I recommend switch to USAA for your banking, loans, brokerage and foreign travel needs - they are the best!

[PghBob]

Mikesump: Here is some info. regarding a Vanguard "Advantage Account" cash management features. I don't know if it is everything you want or need.

Unlimited Checkwriting
Visa Gold debit card
Online bill payment
Overdraft Protection
Direct Deposit
Cost basis accounting
Comprehensive statements
Online account management

They use PNC banks for ATMs and some other banking services.

Good Luck

[Clay_L]

TechWriter wrote:
Snip

It's the CIP (Customer Identification Program) rule (31 C.F.R. 103.121), which is the regulation implementing Section 326 of the USA PATRIOT Act that requires a financial institution to get the following customer information (bottom of page 480 from PDF above):

(1) Name;
(2) Date of birth, for an individual;
(3) Address, which shall be:
(i) For an individual, a residential or business street address;
(ii) For an individual who does not have a residential or business street address, an Army Post Office (APO) or Fleet Post Office (FPO) box number, or the residential or business street address of next of kin or of another contact individual;

While knowing all this might not get you anywhere with your brokerage, it might be worth a try if you don't mind using a relative's address.

Great info. I would think the "another contact individual" could the mail forwarding service. But the bureaucrats at Schwab may be like bureaucrats everywhere - often unable (or unwilling) to think.

[WyoTraveler]

Rollnhome wrote:
I like "two buck chuck" but I just pay cash, no real need for an account.
.....Oh Schwab....not Shaw...never mind.

2 buck chuck isn't 2 bucks anymore. Sure miss Trader Joe in WY though

[Gemstone]

mentioned above "Scottrade is on line and has offices throughout U.S"....while this much is true, Scottrade will not do business with anyone who strictly uses a mail service for an address. They have forced hundreds of fulltimers to use a different on line brokerage firm.

Regards
Gemstone

[TenOC]

You may want to check out Pen Federal Credit Union. Since they work with the military, their fees may be acceptable.

Plus the rewards credit card give you 5% back on gas --$0.20 per Gal . . . :B

[TenOC]

I had the same problem with Scottrade. Scottrade had "flagged" the street address of My Home Address in SD as "bad". Now I do not use the PMB on my address and add a mailing address with the PMB. This works with everyone except Scottrade -- So I use Fidelity (they have a good online bank) and T. Row Price.

While the PO do not like it I have also use Apt (not PMB) to get around the government's rules as programed into the banks computer.

Check out Ally Bank.

[mikesump]

I appreciate all the comments. Many excellent observations, thank you.

Vanguard is great but they aren't into banking as far as I know. Our need to for international banking and we don't want to pay ATM fees on either end or any currency conversion fees.

Supposedly, Charles Schwab is the best option. But, as many of you have said, they don't want our money.

Fidelity may be the next best choice because they don't charge ATM fees and will re-imburse you for any that you have to pay on the other (foreign) side. They charge a relatively small currency conversion fee of 1% on cash withdrawals but that's still $10 on a $1000 withdrawal.

Regards, Mike

[PghBob]

Happy and satisfied Vanguard customer for over 30 years. Worth your time to check them out.

[Flanz]

We currently have and have been with Fidelity for a long time now. Last year I found out that I could open a checking and savings account with Fidelity with zero ATM, as well as other, fee's. You may want to stick with them.

I'm also looking into Vanguard due to their low cost. If I add Vanguard, I'll then link the two together so that I can transfer funds between them.

As others have said, why fight to give them YOUR money!!

-paul

[GoPackGo]

"For an individual who does not have a residential or business street address"

I believe Escapees provides you with a 'residential street address' so that argument doesn't hold water.

I full time and use a different mail service in Florida. I have a for real, no kidding residential address through them. Now if all you had was a PO box number, then I could see where that might be a problem.

This situation with Charles Schwab has been brought up before so you might want to do a search to see if there is a resolution.

Tim

[TechWriter]

mikesump wrote:
We have been full-time RVers now for 2 years and utilize Escapees address and mail forwarding services in Livingston, Texas. This address has sufficed for Vanguard, Fidelity, Chase Bank, and our federal income taxes. We have spent the last month trying to open a Charles Schwab brokerage account so we could use it to open a Schwab bank account, which is highly recommended for international travel as you don't have to pay currency conversion fees.

We have run this pretty high up the flagpole and authorized them to run a credit check, which should convince them that they want us (and the other 250,000 full-time RVers) as customers. But they want a utility bill with our name and a street address and have refused to yield.

Can anyone offer any advice?

It's the CIP (Customer Identification Program) rule (31 C.F.R. 103.121), which is the regulation implementing Section 326 of the USA PATRIOT Act that requires a financial institution to get the following customer information (bottom of page 480 from PDF above):

(1) Name;
(2) Date of birth, for an individual;
(3) Address, which shall be:
(i) For an individual, a residential or business street address;
(ii) For an individual who does not have a residential or business street address, an Army Post Office (APO) or Fleet Post Office (FPO) box number, or the residential or business street address of next of kin or of another contact individual;

While knowing all this might not get you anywhere with your brokerage, it might be worth a try if you don't mind using a relative's address.

[Rollnhome]

I like "two buck chuck" but I just pay cash, no real need for an account.
.....Oh Schwab....not Shaw...never mind.

[ScottG]

We use Waterhouse. Easy on-line account info and manipulation.