BajaNomad - Dollar accounts in Mexican banks

Dollar accounts in Mexican banks

k-rico - 1-22-2009 at 09:36 AM

Two Mexican citizens I know have closed out their dollar accounts in Bancomer this week and moved the money to accounts in San Diego banks. They say that dollar accounts are going to end and closed their accounts before it becomes impossible to withdraw the money in dollars.

Also, my TJ home owner's fees were stated in dollars and the reciepts the bank prepared when paying the monthly fees by stamping a form prepared by the home owner's association had the amount stated in dollars. The bank is no longer accepting this paperwork and is demanding all paperwork have monetary amounts in pesos. The HOA has issued new forms with amounts stated in pesos.

Anybody know what's going on?

Deja Vu all over Again ?

MrBillM - 1-22-2009 at 10:48 AM

It's happened before. Back in the 80s, our best friends and neighbors in Baja would brag about keeping their money in Guaranteed Dollar accounts and forgoing the added (Huge) interest in the Peso accounts.

Big surprise. When the Crisis hit, the banks paid off ALL the accounts in pesos. Mexcio simply changed the law.

I've always told my wife to simply forget about the money we keep on deposit at Bancomer to fulfill the FM-3 requirements. Assume it's gone and, if not, we're ahead.

Woooosh - 1-22-2009 at 11:04 AM

Quote:

Originally posted by MrBillM
It's happened before. Back in the 80s, our best friends and neighbors in Baja would brag about keeping their money in Guaranteed Dollar accounts and forgoing the added (Huge) interest in the Peso accounts.

Big surprise. When the Crisis hit, the banks paid off ALL the accounts in pesos. Mexcio simply changed the law.

I've always told my wife to simply forget about the money we keep on deposit at Bancomer to fulfill the FM-3 requirements. Assume it's gone and, if not, we're ahead.

We have to withdraw dollars today from our Bancomer account and will post what we find out. All bank accounts are now insured- unlike the last time though, so I don't think a bank run is in order... yet.

Of course- here I am saying I'll believe what they tell me. They also told me we were getting interest on our accounts and we have triplicate papers stamped to prove it. The bank still refuses to pay the interest and the VP in TJ (yes, he met with us) told us the branch manager was wrong to promise it (even though we had it in writing).

longlegsinlapaz - 1-22-2009 at 11:44 AM

I closed my Bancomer USD account last year when I'd pretty much drained it for my construction. But while it was open, it WAS an interest-earning account & I DID receive the amount of interest quoted...HOWEVER, it was based on a calendar month interest schedule, so they didn't pay interest for the first 3+ weeks; it began accruing on the 1st of the following month. Ditto for my closing it, I took it out mid-month & interest for that month hadn't posted yet, but by that time the balance wasn't significant enough to be an issue, as it was for the first month when Bancomer made out like a bandit by withholding interest for 3+ weeks.

It appears that once again, the old "different strokes for different folks" rule is alive & well & subject to individual whim based on whose advantage is at the top of the heap! "Bait & Switch" is occasionally a fact of life here...hard learned lessons we have no control over!

Sadly, this is not something limited to gringos; happens with Mexicans all the time, but they seem to have the ability to be more accepting of it that we do. Whoooosh, your situation is one I'd talk with PROFECO about...one would think the bank would have to honor the terms their representative put in writing.

Woooosh - 1-22-2009 at 12:37 PM

Quote:

Originally posted by longlegsinlapaz
I closed my Bancomer USD account last year when I'd pretty much drained it for my construction. But while it was open, it WAS an interest-earning account & I DID receive the amount of interest quoted...HOWEVER, it was based on a calendar month interest schedule, so they didn't pay interest for the first 3+ weeks; it began accruing on the 1st of the following month. Ditto for my closing it, I took it out mid-month & interest for that month hadn't posted yet, but by that time the balance wasn't significant enough to be an issue, as it was for the first month when Bancomer made out like a bandit by withholding interest for 3+ weeks.

It appears that once again, the old "different strokes for different folks" rule is alive & well & subject to individual whim based on whose advantage is at the top of the heap! "Bait & Switch" is occasionally a fact of life here...hard learned lessons we have no control over!

All in all- the missing interest amount is still less than our CFE bill for a month... yikes, dooh. They do know us by name at the bank now though from this- that may not be a good thing either. We save all paperwork- so maybe someday we'll figure out what happenened. They did fire the guy that made the bogus promise to us- so maybe he was doing worse things to others, I doubt it was over our incident.

[Edited on 1-22-2009 by Woooosh]

rob - 1-23-2009 at 11:17 AM

For bank-related issues, a better (and more powerful) ally than PROFECO is CONDUSEF, a federal watchdog with real teeth relating to consumer problems with financial organizations.

In La Paz, Sr. Carlos Bucheli at 01-800-999-8080 or 123-4812, fax 123-4813 swiftly got the attention of Bancomer officials in Mexico City when they dragged their feet on refunding $6000US when my ATM card was cloned (I must add that locally, Bancomer were very supportive).

Bajajorge - 1-25-2009 at 09:17 AM

Bancomer will close your account if there is no activity for 6 months. :mad:

It happened to me 2 years ago.

Lost $67.00. Not much, but it is several cases of cerveza. :no:

longlegsinlapaz - 1-25-2009 at 10:16 AM

Quote:

Originally posted by Bajajorge
Bancomer will close your account if there is no activity for 6 months. :mad:

It happened to me 2 years ago.

Lost $67.00. Not much, but it is several cases of cerveza. :no:

Bajajorge, are you talking USD account...or peso account....OR BOTH/EITHER? Checking and/or savings?

Closed ?

MrBillM - 1-25-2009 at 11:00 AM

I'd have to believe that the closing would have something to do with the nature of the account and the amount on deposit since MOST Bancomer accounts opened to satisfy FM-3 requirements don't show any activity.

My Bancomer account had NO activity for six years prior to this month and the only activity then was to increase the deposit to meet the new FM-3 requirement.

ckiefer - 1-25-2009 at 11:16 AM

I think Bancomer has increased it's minimum account balance which could be the reason your account was closed. Sorry about the beer though, I know how you feel.

Quote:

Originally posted by Bajajorge
Bancomer will close your account if there is no activity for 6 months. :mad:

It happened to me 2 years ago.

Lost $67.00. Not much, but it is several cases of cerveza. :no:

DianaT - 1-25-2009 at 05:36 PM

Quote:

Originally posted by MrBillM

I've always told my wife to simply forget about the money we keep on deposit at Bancomer to fulfill the FM-3 requirements. Assume it's gone and, if not, we're ahead.

Confused?? Are the requirements you are fulfilling the one showing a certain amount of money and income? We do not have a Mexican bank account and it has not been required for our FM-3s or for their renewals.

Or, is this one of those "things are different in different areas"

Diane

FM-3 y cuentas en banco

Mulegena - 1-25-2009 at 05:40 PM

Never needed a Mexican bank account for an FM-3. Got one for FM-2, peso or dollar and balance at my discretion.

longlegsinlapaz - 1-25-2009 at 05:53 PM

Quote:

Originally posted by jdtrotter

Quote:

Originally posted by MrBillM

I've always told my wife to simply forget about the money we keep on deposit at Bancomer to fulfill the FM-3 requirements. Assume it's gone and, if not, we're ahead.

jdtrotter, in La Paz, Immigration accepts my statements from Washington Mutual. Actually, I've used Bancomer statements some years, Washington Mutual statements other years & I seem to recall I used a combination of the two at least one year! :lol:

In my personal experience there's no requirement to have a Mexican bank account, just that you can prove you have the minimum monthly amount SOMEWHERE!

Never Again!!!

thebajarunner - 1-25-2009 at 10:40 PM

"Fool me once, shame on you- fool me twice, shame on me"

I had a dollar account back around 1980- about $10k (U.S. dollars) in the account.

Absolute, bulletproof, bonafide government guarantee,
"We will never, ever, no way devalue your dollar account"

OOOOPPPSSSS!!
Big devaluation, change the law,
TILT!!

Adios ten grand.

If you believe them, then call me, I can make you a much better deal....

TRUST ME>>>>>>

Woooosh - 1-25-2009 at 10:48 PM

Quote:

Originally posted by Mulegena
Never needed a Mexican bank account for an FM-3. Got one for FM-2, peso or dollar and balance at my discretion.

I wasn't asked for a bank account for the FM-3 but I did have to show proof of the income to support myself (or something like that). I used a bank statement though- it was easier.

Woooosh - 1-25-2009 at 10:51 PM

Quote:

Originally posted by thebajarunner
"Fool me once, shame on you- fool me twice, shame on me"

I had a dollar account back around 1980- about $10k (U.S. dollars) in the account.

Absolute, bulletproof, bonafide government guarantee,
"We will never, ever, no way devalue your dollar account"

OOOOPPPSSSS!!
Big devaluation, change the law,
TILT!!

Adios ten grand.

If you believe them, then call me, I can make you a much better deal....

TRUST ME>>>>>>

That must have stung a bit. Haven't they created the mexico eqivalent of a FDIC- up to $100K? Still- I se your point.

Getting Down in the Weeds

MrBillM - 1-26-2009 at 10:26 AM

There is NO requirement to have a Mexican Bank Account.

However, in our case, it was a matter of convenience. When we were renewing in the USA each year, we would bring a notarized statement from one of our banks stating that our amount on deposit was always above a certain figure. No problem.

When the Consulate ceased processing renewals, we went to an agent in San Felipe. At that time, they were strictly enforcing the wording that said you needed a U.S. statement (in Spanish) and signed by the Secretary of State (not simply by a notary public). Probably an effort to encourage depositing the minimum or more ($1500) in a Mex Bank. Worked for us. The small amount of money involved was preferable to the added hassle of doing it otherwise. This year, the minimum "supposedly" went up to $2000 USD. Again, not a big deal, so why worry. BTW, I also heard that the minimum had been expressed in Pesos at $19,500, which at today's rate, would have been only the original $1500 USD, so I really don't know what the truth is. What I do know is they said that's what they want and it was OK by me. After all, we're not talking about a fortune here.

I've also heard from others that the "requirement" for a Spanish statement signed by the applicant's Secretary of State is not necessarily required depending on who and where the renewal is done. It is in the wording of the law, though.

As with many things bureaucratic, my course is usually to do that which doesn't impact my time and efforts more than necessary. That's why I've "almost" Always taken the Mordida route (when offered) over the years. I'm not out to change a foreign country's way of doing business. I'm only interested in what benefits me the best.

I'll leave the Crusades to others.

[Edited on 1-26-2009 by MrBillM]

flyfishinPam - 1-26-2009 at 11:14 AM

Quote:

Originally posted by Woooosh
That must have stung a bit. Haven't they created the mexico eqivalent of a FDIC- up to $100K? Still- I se your point.

yes they have its called Instituto para la proteccion al Ahorro Bancario
website link:
http://www.ipab.org.mx/

according to the front page of this website accounts are insured for up to $400,000 UDI's. $400K UDI's = 1,683,129.20 Mexican pesos

[Edited on 1-26-2009 by flyfishinPam]

flyfishinPam - 1-26-2009 at 11:18 AM

Quote:

Originally posted by MrBillM
There is NO requirement to have a Mexican Bank Account.

as with everything pertaining to immigration here in Mexico the requirement is up to the person granting the visa..in Loreto many people have had this requirement put on them while some others have not. It just depends.

La_Paz_Banker - 1-26-2009 at 02:49 PM

Good morning everybody

My name is Blanca Corral I am working in Bancomer in the Preferred Customer unit I am sure that some of you know about this services is a bilingual services that we provide in Bancomer and specially for you, about this rumor of dollars account, that’s NOT TRUE we are NOT closing the dollar accounts, Bancomer is a very strong bank and we don’t have any changes about this kind of accounts, we still offering peso and dollar accounts and also we continue changing us to pesos and changing travels checks and all the services there is not any change about this

If you have any question please feel free to contact me
b.corral@bbva.bancomer.com

Regards

Insurance??? On devaluation? Not!!

thebajarunner - 1-26-2009 at 07:49 PM

Quote:

Originally posted by flyfishinPam

Quote:

Originally posted by Woooosh
That must have stung a bit. Haven't they created the mexico eqivalent of a FDIC- up to $100K? Still- I se your point.

The question is not what is being insured, but what you will end up with at the end of the game.

They changed the absolutely bulletproof law in 1980 that said dollar accounts will never be swapped to pesos...

Anyone that will change the law once,
will change it again
and again
and again

well, you get my point (I hope)

Thank you!

djh - 1-26-2009 at 08:27 PM

Thank you~!

Very nice of you to offer your professional insights !

And to offer your Email for questions is especially nice!

In my little Loreto (centro) branch finding someone who I can communicate well with (my limited Spanish meets bankers' limited English) is sometimes a challenge.

So, again, Blanc Corral:

Muchas Gracias,

djh David Hunt, Loreto

Quote:

Originally posted by La_Paz_Banker
Good morning everybody

My name is Blanca Corral I am working in Bancomer in the Preferred Customer unit I am sure that some of you know about this services is a bilingual services that we provide in Bancomer and specially for you, about this rumor of dollars account, that’s NOT TRUE we are NOT closing the dollar accounts, Bancomer is a very strong bank and we don’t have any changes about this kind of accounts, we still offering peso and dollar accounts and also we continue changing us to pesos and changing travels checks and all the services there is not any change about this

If you have any question please feel free to contact me
b.corral@bbva.bancomer.com

Regards

Woooosh - 1-26-2009 at 10:57 PM

Quote:

Originally posted by MrBillM
There is NO requirement to have a Mexican Bank Account.

However, in our case, it was a matter of convenience. When we were renewing in the USA each year, we would bring a notarized statement from one of our banks stating that our amount on deposit was always above a certain figure. No problem.

When the Consulate ceased processing renewals, we went to an agent in San Felipe. At that time, they were strictly enforcing the wording that said you needed a U.S. statement (in Spanish) and signed by the Secretary of State (not simply by a notary public). Probably an effort to encourage depositing the minimum or more ($1500) in a Mex Bank. Worked for us. The small amount of money involved was preferable to the added hassle of doing it otherwise. This year, the minimum "supposedly" went up to $2000 USD. Again, not a big deal, so why worry. BTW, I also heard that the minimum had been expressed in Pesos at $19,500, which at today's rate, would have been only the original $1500 USD, so I really don't know what the truth is. What I do know is they said that's what they want and it was OK by me. After all, we're not talking about a fortune here.

I've also heard from others that the "requirement" for a Spanish statement signed by the applicant's Secretary of State is not necessarily required depending on who and where the renewal is done. It is in the wording of the law, though.

As with many things bureaucratic, my course is usually to do that which doesn't impact my time and efforts more than necessary. That's why I've "almost" Always taken the Mordida route (when offered) over the years. I'm not out to change a foreign country's way of doing business. I'm only interested in what benefits me the best.

I'll leave the Crusades to others.

[Edited on 1-26-2009 by MrBillM]

Wow an honest realist. :bounce:

CaboRon - 1-27-2009 at 06:43 AM

Quote:

Originally posted by Woooosh

Quote:

Originally posted by Mulegena
Never needed a Mexican bank account for an FM-3. Got one for FM-2, peso or dollar and balance at my discretion.

I wasn't asked for a bank account for the FM-3 but I did have to show proof of the income to support myself (or something like that). I used a bank statement though- it was easier.

I have never had a savings or checking account in a Mexican bank.

All I have been asked for in La Paz was my Social Security award statement , which comes around January each year.

I have no savings, just my bbvaBankcomerUSA account statement which I have downloaded and printed. This year I gave them a one month statement.

In fact my monthly income is only 1200 US dollars which may be under the minimum, and they have never said anything about that either.

After reading many posts over the last year it seems that the immigration office in La Paz is the easiest to deal with.

They have always been friendly and helpful and they made this year's renewal of my FM3 quite painless.

CaboRon

[Edited on 1-27-2009 by CaboRon]

flyfishinPam - 1-27-2009 at 08:38 AM

Quote:

Originally posted by thebajarunner

Quote:

Originally posted by flyfishinPam

Quote:

Originally posted by Woooosh
That must have stung a bit. Haven't they created the mexico eqivalent of a FDIC- up to $100K? Still- I se your point.

somebody asked if Mexico had an FDIC-like plan and I was pointing out that they do. I don't know too many people that would keep $400K in a Mexican bank anyway but there is an insurance plan. BBVA is a pretty strong bank as are most Mexican banks. They didn't hand out subprime loans like water and they don't give credit easily, its costly and you have to have collateral so they're protected against default. Devaluation of the peso may happen but devaluation of the US dollar may be in the future as well because the US government has overextended itself with the constant bailouts and now a significant stimulus is being proposed. Where does that money come from if it doesn't exist? the printing press. when there are many dollars printed soon they will be only worth the paper they're printed on and their value will decline. I hope that doesn't happen.

Thanks for this thread and thanks to the insider at Bancomer for dispelling this RUMOR.

Hook - 1-27-2009 at 08:52 AM

Was there insurance protection in place during the last devaluation of the peso? People supposedly had dollar accounts. Were they not covered?

CaboRon - 1-27-2009 at 09:01 AM

Quote:

Originally posted by Hook
Was there insurance protection in place during the last devaluation of the peso? People supposedly had dollar accounts. Were they not covered?

Some of you are missing the point

thebajarunner - 1-27-2009 at 09:31 AM

The original dollar accounts paid a low rate of interest, but were valuable because, according to the very honest government of Mexico, the account would always stay in dollars.

Well, they just made a minor, small adjustment in that law (a little dripping sarcasm here, folks) and switched all the dollar accounts to pesos, then they devalued the peso.

So, follow the bouncing ball, if you will.

If I have $10,000 in US dollars in a 'dollar account' and it gets switched to a peso account and they lop off one or two zeros on the peso, now my account is still worth the same in pesos, but only 10%, or as mine worked out in a couple years, 1% of its original value>>>> in dollars!!

So, all the insurance in the world is worthless if they are only insuring the number of pesos, and not the value of the dollars.

Whew..... I think I even confused myself with that answer,
all I know is that it does not take long to make big dollar amounts, converted into big peso amounts, get peso devalued and worth nothing....
Well insured, nonetheless, but still worth nothing.

Got it? I think I need another cuppa coffee.

flyfishinPam - 1-27-2009 at 09:39 AM

so I guess the lesson here is what most Mexicans already know. don't trust the banks, any banks in any country.

thebajarunner - 1-27-2009 at 06:43 PM

Pam, it was not the banks,
It was the good old government that changed the law.

(For years prior we had referred to Mexican banking as "equivalent to the security and secrecy of Switzerland"- I think it is closer to Rwanda, which currently has an inflation rate measured in the trillions, literally)

Bajajorge - 1-28-2009 at 09:23 AM

Quote:

Originally posted by longlegsinlapaz

Quote:

Originally posted by Bajajorge
Bancomer will close your account if there is no activity for 6 months. :mad:

It happened to me 2 years ago.

Lost $67.00. Not much, but it is several cases of cerveza. :no:

Bajajorge, are you talking USD account...or peso account....OR BOTH/EITHER? Checking and/or savings?

It was a Peso savings account complete with ATM card.

Hook - 1-28-2009 at 01:11 PM

Quote:

Originally posted by thebajarunner
Pam, it was not the banks,
It was the good old government that changed the law.

(For years prior we had referred to Mexican banking as "equivalent to the security and secrecy of Switzerland"- I think it is closer to Rwanda, which currently has an inflation rate measured in the trillions, literally)

It wouldnt surprise me if it WAS the banks, through crooked politicians beholden to them, that changed the law.

I dont use a Mexican bank. No need to actually PAY for the right to keep your money in there. Then, there's the accounting errors that I read so much about. Then there's the poorly administered trusts I read so much about.

La_Paz_Banker - 1-29-2009 at 09:32 AM

Good morning, just a couple of announcements,

I am Blanca Corral and I am working in Bancomer as I told you in a message before.

About BANCOMER IS ACCEPTING DOLLARS you can confirm that information in the newspaper from lat Monday we had a full page saying that we accept dollars and also you will see this announcement in the next gringo gazette

About the accounts in Mexico if are protected, yes after the 1994 crisis we had a new bank system and your accounts are protected in any Mexican bank

For the ones that are in Loreto let me tell you that also you have the Preferred customer unit there, there is an English speaking lady in the new Bancomer branch in Loreto her name is Lilliana and you ca deal with her, her telephone number is 613 1351642

Also here is mi mail for future personal questions that you need to solve.

Regards

LOSARIPES - 1-30-2009 at 04:49 AM

Blanca,
Since you are "inside", do you know and can you share the logic and reason why HSBC or any other bank is refusing US cash for exchange to Mex pesos?
Normally I would think, banks would "snatch" your dlls. off your hand, especially during mex currency devaluation or uncertain times.

HSBC is refusing to accept green ones....