When the bank receives returned mail from the USPS with a yellow sticker of changed address, our policy is to send a letter and file maintenance request form to the customer at both addresses. Generally, our customers will respond and return the maintenance form and we update our records to reflect their new address. However, we have a customer that we continue to receive returned mail on but they have yet to return the maintenance form or come into the bank to change their address. We have spoken with them on the phone and they keep making promises to come by the bank but they never do.

Question-Can we place a hold on this customer's account and refuse transactions until the customer comes in?

I'm curious why you would want to place a hold on the account? Are you concerned about identity theft, or do you just want your records to be accurate?

We want the customer to update their address so that we don't have returned mail. We just figured that placing a hold on the account would get their attention so that they will make it a priority to come by the bank or return the change of address form.

However, repeated returned mail items while there are continued transactions on the account is considered to be a red flag so I suppose there could be risk there but in this case, it is really just more of an aggravation that the customer hasn't done what they said they would.

You might want to consider flagging the account to catch the customer when they come into the bank. But a hold seems extreme and I'm not sure it would even be allowed. It's not one of the hold categories under Reg CC.

The account is already flagged but this is not a customer that comes into the bank obviously. Everything is direct deposit etc.

It was just a thought...

Good luck to you...I know it's a pain to deal with this stuff.