More than 20,682 consumers filed CFPB complaints between December 2025 and May 2026 after banks abruptly locked them out. Analysts tie the spike to a May executive order directing regulators to guide banks on spotting informal work tied to undocumented workers. Banks say the guidance stops short of mandatory citizenship checks, but many have opted to close accounts pre‑emptively.

Jim Mc Carthy, chair of Mc Carthy Hatch, used AI to scan 609,000 complaints and found roughly 3% mention sudden closures, frozen funds, or terminated relationships. He warned that “the number of accounts that are suddenly closed is going through the roof,” noting the trend appears to be accelerating despite a lack of historic comparison data. The analysis likely undercounts the true scale because most affected customers never file complaints.

Fintech firm Block, operator of Cash App, emerged as the most cited institution for unexplained closures, though it declined comment. Regulators have issued advisories linking immigration status to due‑to‑repay assessments and customer due‑diligence, prompting banks to over‑comply. Consumer advocates say the opaque process leaves users feeling criminalized while their funds eventually return, highlighting a growing tension between AML obligations and basic access to banking services.