Does anyone have a sample letter they're willing to share that is sent to these people perhaps explaining the legal consequences and somewhat scaring these people into ceasing such behavior?

kb

First off--the last time I was in Beatrice, NE a cold snap hit while I was on my motorcycle (38 degrees). So, I was a bit scared when I saw your location.

Second--I don't know that I'd do that. I would talk to them, but only as an advisor. The losses that result from bad check writing are taken by the merchants who accept the checks, so the DA usually sends the letters. My advice is to place a restriction on the account based on abuse to minimize your "losses" (NSF fees, most likely) and prepare to charge off the account if it gets to that. Begin a pre-collection process to notify the customer of his/her obligation and document results of the (attempted) contact. Try to set up a payment plan and follow through with the results of that.

If the customer is purposely writing bad checks, they are commiting a crime against the institution. Close the account. Unless you are an attorney, do not give any legal advice or explain any legal concepts. It is called the unauthorized practice of law. The easiest thing to do is close the account. Since you have cause, you don't even need to notify them in advance of the closure.

Sometimes you just can't give the customer the benefit of the doubt.

And most certainly don't follow reactionary advice by someone posting under the cloak of anonymity. While I agree you ought not be providing the customer with legal advice, you may well have an obligation to provide your customer with notice when closing an account. Look to your deposit agreement for guidance and if you have any further questions, consult with the bank's attorney.