Can Banks Cancel Your Credit Cards If You’re Nomadic?

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Close up of credit cards

With online banking and direct deposit becoming the norm, many people rarely visit their local bank. However, no matter how often you visit them, a bank may not support your nomadic lifestyle.

But can a bank cancel your credit cards because you’re a nomad? This is an important question you must ask before hitting the road.

Today, we’ll talk about one RVer’s recent experience and how you can avoid it happening to you. Let’s roll!

What’s in your wallet? For one fellow RVer, it’s no longer a Capital One credit card. The traveler shared his recent experience with one of the largest banks in America. Unfortunately, he’s anything but a happy camper.

He stated he received a letter after a review of his account with them. The bank had discovered he was using a mail-forwarding address. They informed him that he had a limited time to provide a new address or they would close all his accounts. 

They’re Not the Only RVers with Bank Issues

Unfortunately, it was shocking how many others had experienced similar issues with Capital One and other large banks like USAA. Other full-time RVers shared they had had checking, savings, and credit card accounts unexpectedly closed.

On the other hand, plenty of RVers who have been nomads for years haven’t ever had any issues. There seems to be a bit of inconsistency in the policy enforcement. However, it could be that some mail-forwarding services are registered differently or still flying under the radar.

Could this be the beginning of a more widespread problem in the nomad community? We hope not, but we’ll keep you posted if we see other large banks following Capital One’s lead.

A person cutting up their credit card

Why Do Banks Need Your Physical Address?

Banks need your physical address for several reasons. For starters, it’s one of the Federal Deposit Insurance Corporation (FDIC) requirements.

The requirement is to crack down on money laundering, embezzlement, and identity theft. So, any bank backed by the FDIC must follow this requirement.

Secondly, it’s so they have a way to communicate with you. This includes sending documents, statements, and other correspondence. However, with so many of us embracing digital communications, this is becoming less and less of an issue.

While it’s also necessary for taxation and risk assessments, it’s also useful for repossessions. A bank may be generous enough to lend you the money for that beautiful camper. However, they’ll want to know where to start looking should you skip town and stop paying them what you owe.

Keep in Mind: Should You Tell The Bank You’ll Be Living in an RV Full-Time? You might want to think twice before you do.

How to Avoid Banks Closing Your Credit Cards While RVing

We have a few things you can do if you’re worried about a bank closing your cards while RVing. Here are some tips for avoiding a bank shutting you down while traveling.

Don’t Ignore Their Warnings

If you get a letter or notice from your bank, take it seriously. Ignoring the situation won’t make it go away. They’ll do what they said in the letter if they don’t hear from you. They’ll close your accounts and send you a check for whatever you had in the bank.

Also, don’t think they’ll wipe away any debts you owe them. Just because they close your account doesn’t mean you can stop paying them.

Your best bet is to give them a call and chat with them. They don’t want to lose you as a customer, just like you likely don’t want them to close your accounts.

Close up of a warning letter sent to an RVer about their credit card

Use a Friend or Family Member’s Home Address

One option to consider is to use a friend or family member’s home address for banking purposes. However, always get their permission before doing so. You don’t want to receive an awkward phone call if you start receiving correspondence at their place.

Once you switch to their address, change all your preferences to paperless. This allows the bank to send everything to your email or online account.

You can access statements and other correspondence, and your friends and family won’t get annoyed. It’s a win-win!

Keep in Mind: This Mail Service for RVers Is the Largest, But Is It the Best? Let’s find out!

Join Escapees

In the original post, many of the individuals who hadn’t experienced any issues were members of the Escapees RV Club. If you’re not aware of Escapees, it’s one of the largest RV clubs in the country, and they offer mail services.

They provide you with a physical address that you can use to become a resident of South Dakota, Florida, or Texas. Many Escapees members have used the services for years and experienced no issues. 

However, a fellow RVing friend ran into issues when financing his RV. When he provided his Escapees’ address, the system flagged it. Luckily, the lender only required a minor adjustment to minimize their risk.

Escapees RV Club is just one of many of these services. Another popular option in the community is America’s Mailbox. However, we can’t say that either service or any other is immune from potential issues in the future.

Swipe Your Credit Card While Enjoying the Nomadic Life

Hopefully, this doesn’t become a trend amongst financial institutions. The nomadic life and traveling are hard enough as it is.

If you take the steps we’ve shared, you have a good chance of avoiding issues. You can continue swiping your card and enjoying the nomadic life with no worries. However, if you do receive a letter, take it seriously and spring into action.

Have you encountered banking issues while RVing?

  1. This recently happened to me Wells Fargo / Passport America (MyRVMail). Call to WF was useless…they are working to get under the scrutiny of federal oversight and past misdeeds….no negotiation on this point. It’s so ridiculous.

  2. Banks don’t need an excuse to cancel your account. By law they can do it for any reason or no reason at all.
    Unfortunately, it happens all the time. There has been much in the news about it lately.

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