[Former] customer is a member of a protected class. Bank discovers customer deposited checks made payable to a relative, and relative was not authorized to withdraw funds from the deposit account. Bank closed deposit account "due to banking irregularities". Customer also verbally abused tellers.

[Former] customer now sues bank for discrimination.

Bank's COO wants legal or regulatory citations to support bank's actions. Are there any, other than the need to put this complaint and supporting evidence into CRA public file?

My BOL search results simply say that for deposit accounts and deposit transactions, banks can pretty much choose who to do business with.

Since the complaint isn't about your CRA performance, I see no need to include it in your public file.

The information was pretty scant. Did the realtivtie endorse the checks? Was the endorsement forged? The the relative complain? Was this fraud? Were the checks returned?

Original Anonymous here with somewhat modified and expanded information.

Former customer came into drive-through with a 5-figure check from insurance company, but check was entirely in former customer's handwriting. Check was made payable to former customer's parent, and former customer does have POA for this parent. Customer refused to endorse check as POA. Branch refused to accept check for deposit, split deposit or cash. Former customer went to a 2nd branch drive-through and 2nd branch responded similarly. Former customer became verbally abusive, left 2nd branch drive-through and left suspicious check behind at the branch. So - attempted fraud.

It has been proven by the Supreme Court of the United States that the depository relationship between a bank and its customer is a contractual relationship, with the contract being the signature card. Either party can break the contract at any time. The customer can come in and close their account. The bank has to use a bit more leeway, and give the customer reasonable time (we use 10 business days) to establish a relationship at another financial institution. When I close an account, I am careful NOT to give a reason. I say "it is in the best interest of the bank if our relationship were terminated." Plain and simple. Giving a reason could open you up to problems, in my opinion. What do other banks do ???