Question & Answer

Note: the following is one of the reasons I get such a charge out of answering the telephone in this office!

Question: "We had a man come in to open an account, and when we ran the information past our new accounts clearing system, they came back and said there was "further research necessary-we'll get back to you." We processed the deposit, but we haven't given any checks to the man yet. When we finally got back the report, we found that this man is under indictment for killing a bank security guard last summer. We don't want this account. What can we do?"

Answer: The courts say you have a right to choose your customers. You have a perfect right to simply refuse to service this "gentleman's" account. This is cleanest and easiest, of course, if you have not yet taken his deposit along with his application. If you've processed the deposit, you've already made him a "customer" instead of an "applicant". But you can still write to him, tell him you have chosen not to service his account, and tell him he has ten business days to make other arrangements. We have sample "turn-down" and "close-out" letters here in the office if you want them-glad to send them to you. Give us a call if you want them.

Copyright © 1993 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 3, No. 11, 4/93