Do You Really Know Your Safe Deposit Locksmith?

by David P. McGuinn

During the past few years there have been several safe deposit lawsuits where the following questions have become very relevant:
Does your locksmith sign a "Vault Entry Record" before entering your vault?
Does this entry log show the technician's signature, purpose of visit, date, time and approval of your vault personnel?
Does your policy require that your vault representative stay with the technician during the entire procedure?

If you responded "no" to any of these questions, you could have a significant problem defending your internal procedures if a 'contents disappearance claim' occurs. Let me tell you about a disappearance claim where the financial institution lost the case because of negligent safe deposit procedures.

"Once upon a time?"
?a boxholder, whose rent was past due, went to the safe deposit area to get his box contents, because the box had been drilled. He begrudgingly paid the drilling fee and past due charges. Everything went smoothly until he got the contents and looked at the inventory form. He furiously demanded the return of $10,000 cash which he claimed was missing.

The vault attendant explained to him that when his box was drilled, the contents were removed and inventoried under dual control. Therefore his $10,000 claim was impossible.

The boxholder was very upset and quite persistent. He demanded that every person involved in this procedure (including himself) take a polygraph test. The bank reluctantly agreed and arranged for the testing.

Surprising results?
The financial institution was pleased when their people passed the test with flying colors. They were surprised when the boxholder test results came back supporting his claim. The real shock came when the locksmith who drilled the box FAILED his polygraph test!

Left alone in the vault?
Then they learned that during this box drilling procedure the locksmith had been left alone in the vault to open all the past due boxes. Only after all boxes were opened did the safe deposit personnel enter the vault to perform the required inventories. There was no doubt that this resourceful locksmith used this unsupervised time to remove more than just locks from the drilled boxes.

Charges were filed and the locksmith's insurance company reimbursed the boxholder. The insurance company then filed a lawsuit against the financial institution to recover their losses, claiming the institution was negligent for leaving the locksmith alone in the vault, and if proper controls had been followed this loss would have never occurred. The court agreed. The financial institution had to pay the $10,000.

Boxes are not the only problem
When a service technician is left alone in your vault, he has total access to everything. We've learned of a technician who by-passed the security system, vault door combinations and time locks. He returned that night and emptied boxes and the reserve cash lockers.

Select your locksmith carefully!

To reduce your potential liability, select your locksmith by interviewing several reputable firms and comparing their fees. Then set up internal procedures to monitor and control their service activity inside your vault. Keep an entry log recording vital information and stay with the technician at all times.

Conclusion
With a strong policy in place, strictly followed, you have a much stronger defense if a customer claims something is missing from a drilled safe deposit box. The last person you want in your vault alone?is a trained locksmith!

(If you don't have an adequate "Non-Renter Vault Entry Record" system, call Safe Deposit Specialists at (713) 690-2926.)

Ask The Locksmith
Do your technicians have adequate safe deposit service experience?
Does your company have a current safe deposit client list? (Contact their references.)
Are your technicians bonded? (Request the name of their insurance or bonding company and a copy of a current Certificate of Insurance or Blanket Bond.)
Do you carry an inventory of locks to service our immediate needs? (This minimizes the unsightly doors or locks that are sometimes missing for weeks.)
Is your company a member of any local, state or national Locksmith Trade Association?
Are your technicians properly trained in safe deposit procedures and do they know our state laws? (Technicians should be able to help us comply with current safe deposit regulations.)

David P. McGuinn, a former banker and president of Safe Deposit Specialists, has trained over 75,000 safe deposit managers in more than 40 states. He is a frequent contributor of articles and advice to the BANKERS' HOTLINE. Dave can be reached at his offices in Houston, Texas at (713) 690-2926.

Copyright © 1995 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 5, No. 6, 2/95