We have a customer who is constantly complaining about everything, making baseless claims and threatening to "take his money elsewhere", and is generally a much greater headache to deal with than he is worth. My question to you is this: Is there anything that would prohibit us from closing his account, simply because we do not want to do business with him??? It's not on any prohibited or discriminatory basis, it's just because he honestly is way too much of a hassle to make the banking relationship worthwhile. Also, if we can do this, what type of notice or whatever would we need to serve him with??? I'd really appreciate some help on this topic. Thanks!

If he threatens to take his money elsewhere, then simply tell him to!

I forgot to point out that I'm talking about closing deposit accounts, not loans. Thanks!

Make sure you have reserved the right to close the account in your disclosure (you probably have.) If your disclosure provides for XX days notice before closing the account, then make sure you follow that. Otherwise, use whatever notice you deem appropriate (10 business days is routinely used for non-fraud related closings.)

You have no obligation to serve a customer that is disruptive to your operations - just make sure that the complaints are not justified within a scenario in which the customer has a point. Also, make sure that all levels of (at least) local management are on board as you don't want to be forced to re-open by management.

Actually, I would ask the customer to close the account, versus making the first move - unless he/she declines the request. A letter stating that you can no longer service the account due to unreasonable (or even continual) customer service expectations should do the trick.

I think I know this guy! When he banked with us, my boss, more even tempered than me, sat down with him and told him that he had been rude to our staff and caused a disturbance on a number of occasions. He explained that, if there were any future instances, we would ask him to close his account.

He was absolutely flabbergasted. He couldn't believe the bank would consider terminating the relationship just because he abused "the help." In any case, he behaved from that point forward.

What's enough provocation is obviously a matter of judgment, but the choice is yours.

So am I correct in assessing that there is nothing that prohibits us from closing his accounts/terminating his relationship with us? Essentially we need to send him a letter (along with his funds) notifying that we are choosing to terminate our banking relationship, and we should be ok?

You are correct. Maintaining an account with your institution is a privilege, not a right. Assuming your deposit disclosures adequately describe your discretion to close the account (most do) we tell them the account is closed and that any money in the account will be used to fund any checks which haven't cleared. After 30 days, we cut a check. We don't allow any deposits, unless the account is in the negative..