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bjpmtravis87

NEW BANK/INVESTMENT ACCOUNTS-PATRIOT ACT

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When we started full timing 3 years ago, we changed our permanent legal address to 140 Rainbow Drive, Livingston, TX 77399, utilizing the mail forwarding service.  All vendors, etc and Scottrade were informed of the changes immediately after our home in New York was sold and Livingston became our "address."  There was no reaction to this change at the time, or since that time.

Recently , we had reason to open another, new brokerage account with Scottrade.  We were told that research showed that our Rainbow Drive address was not legitimate as a "home" and that the "Patriot" Act required that we demonstrate that we had a physical address.

My response was that we lived on the road in an RV and that the State of Texas has determined that our address was good enough that they would, and did, issue driver's licenses, motor vehicle titles, and voter registrations, just to mention a few things that we are able to acquire through our legal address in Livingston.

The response of Scottrade was that they were unable to recognize that address as legal in the sense that was required by the "Patriot" Act.

Has anyone else encountered this blockade?  Curious is anyone has found a solution to the issue.  With thousands of Escapees and other full timers out on the road, it would seem to be a fairly large problem for many of us.

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Other firms will happily take your business.  i would tell Scottrade to go suck eggs, but that is just me.  This has been discussed many times on these boards.  There is a work around, but can't remember the exact details.  Again, they are suppose to work FOR you, not the other way around.

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I am not sure but I have been told that the Patriot Act expired a few years ago. Many financial institutions have internal policies that still follow the act but this is just company policy not the law. You are correct that if the State of TX recognizes your address as a legal address than it is a legal address. If Scottrade won't accept it than go elsewhere. 

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I had the same issue with the two 401k accounts that we have.  So I just gave them a relatives mailing address for my investments.  Sucks as we were trying to do it the right way.  Then Uncle Sam forces you to lie to them.

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The problem is "probably" 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;********************

Invoke the next of kin exemption, bump up through supervision and management until you reach someone who can over ride the generic patriot act stonewall.

The above was posted by AC7880 in this thread:
http://www.rvnetwork.com/topic/124735-rv-loan-restrictions-for-full-timers-possible-solution/?tab=comments#comment-860530

Or you can find companies that will be willing to work with you.

Barb

 

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On 9/12/2017 at 8:41 PM, bjpmtravis87 said:

Has anyone else encountered this blockade? 

I believe that Scottrade has been a repeat offender for that problem. Is your account still in a NY office, or did you move it to a TX office? If you have not done so, move to a TX broker first as they are much more likely to understand that there are alternatives. You may also want to call the Escapee's office and ask them for assistance on this as they have dealt with the problem in the past. If your accounts are transferred to a TX Scottrade office and they still refuse to work with you, find a new brokerage firm as there are many who would be happy to do business with you. A good place to start would be MULTIGENERATIONAL WEALTH STRATEGIES.

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Barb!

Great research. Thanks for the exact quotes. I don't have the problem as we are off the road and in the process of selling our two acreages, the inherited 6 acres, and our 5 acres, and moving to Colorado next year. But I will keep the links to pass along from my website and here by referencing this thread.

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I had the exact same issue with Scottrade a few years back.   Had to transfer to another brokerage.  They won't deal with full timers unless you use a relative's address.  Which I declined to do

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