Can the Bank close a customer's account due to filing multiple dispute claims. Is there any Regulation stating that we can't close the account for this reason?

If the account is receiving direct deposits of federal benefit payments, you have to provide 30 days’ notice unless fraud is involved. State law may also set a notice period. If federal and state rules aren’t involved, review your deposit contract for any agreement on notice. Typically, you do not have to even have a reason, nor do you have to tell them why, unless you required it in your agreement.

I would be leery of closing a customer's account for exercising his or her consumer protection rights.

I would not hesitate for a minute on closing their account if they are either too stupid to manage their accounts/cards properly or I thought they were gaming the system. If this involves multiple disputes (not related to the same issue occurring at the same time), one of those is usually the case.

IMO, it depends on the quantity of dispute claims, the reason for them, and whether the accounts in question include an overdraft line of credit.

We do not hesitate to close an account if there are multiple disputes. The vast majority are fraudulent in nature, but we also don't want to waste time and resources on someone who cannot be bothered to properly manage their account.

Of course, we comply with the information outlined in Randy's initial post.

The one thing I would avoid is adverse action on an application by the customer for an extension of credit, based in any way on the customer's exercise of their right to make a Reg E claim. Otherwise, I'm with those who would exit the customer relationship.

Can you point me to the specific rule regarding notice for accounts receiving gov't benefits?

https://fiscal.treasury.gov/files/reference-guidance/green-book/greenbook-full.pdf

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