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Latest Operations - Closed/Closing Accounts Topics

Closing a low-balance account

04/13/2025

If a customer requests to close an account with a balance under $100, would it be a best practice to issue a cashier's check, or could we just have the customer sign a closing ticket and note that they took cash?

Using a third-party collector for overdrawn account

03/02/2025

My question is related to checking accounts that go into the negative and are facing potential charge off. I am looking to see what the rules and regulations are in regard to sending negative checking accounts (depending on the amount) to a third-party collector. Is this allowed? I cannot find anything anywhere stating that it is allowed.

Closing a gullible customer's account

09/22/2024

Suppose that you have a customer that is 100% the victim of a scam. The transactions clearly show P2P withdrawals going to random people, the customer is purchasing gift cards at dollar stores and grocery stores and admits to sending this money to "a friend." The activity gets worse and worse every time you look at it, but the transactions are all authorized debit card purchases. Therefore, it is the customer's own money being spent, and the customer refuses to believe they are speaking with a scammer. Is this reason enough to close an account for suspicious activity? Is it a waste of resources for the account to be monitored?

Close Account Due to Account Abuse?

11/24/2019

We have a customer who we recently refunded $630 of Returned NSF Fees and Continued Negative Balance Fees to after stating the items came thru sooner than scheduled (Reg E). The account went positive for one day and has now been negative for 17 days since (62 days NSF last 12 months). She has another account that is currently positive but that account has also had 41 days NSF. Can we close her accounts due to account abuse or failure to maintain account in a responsible manner?

When scam victim refuses to close account

10/07/2018

Our customer has, on more than one occasion, put his checkbook where untrustworthy individuals have gained access and he’s also given out his account info to scammers. We have told him he needs to close his existing account and open a new one. He refuses. Is there anything we can do?

Reason for Closing Account - Suspicious Activity

08/27/2017

We have a fraud program that lets us receive collaborations from other financial institutions via 314b information sharing that have reported suspicious activity with our mutual customer. Our customer has not yet conducted suspicious activity with us but we know it's just a matter of time. How can we justify closing the account or what reason can we give to the customer for closing the account without disclosing where we received the suspicious activity from?

Closing Account Due to "Kiting"

12/04/2016

Can institutions mail clients letters stating they are closing ​an account due to kiting? I've always understood that you had to use the term "uncollected fund​s​" when telling a client their account was ​being closed.

Closing Account Due to Kiting

11/15/2015

We have a customer who we suspect is kiting. We are considering closing the account and writing the customer a letter stating that the account is being closed. Our question is what can say to the customer to explain why we are closing the account?

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Closing a low-balance account

04/13/2025

If a customer requests to close an account with a balance under $100, would it be a best practice to issue a cashier's check, or could we just have the customer sign a closing ticket and note that they took cash?

Signature card and substitute W-9 info

04/13/2025

I have a single member LLC that is not a disregarded entity. I have an EIN letter that says single member. Should my signature card show Single Member LLC or LLC (LLC tax classification)?

Banking marijuana-related businesses

04/06/2025

Our bank has taken a "no" stand on banking MRBs, however we recognize the "Tier III" category identifies some types of businesses that may provide services to a Tier I MRB. An example would be a container manufacturing company that may sell containers to a Tier I MRB as only a small percentage of their business. Does anyone use an allowable percentage of revenue to determine if this is within your risk tolerance? Also, is there an allowable threshold for direct sales of cannabis products in the states that have legalized use? (For instance, a liquor store or distributor that sells beverages with THC, since that is becoming so common).

Checking credit for opening accounts for agriculture

04/06/2025

Are banks legally obligated to perform credit checks when H-2A workers apply for a basic bank account? Our banks serve large agricultural communities where farmers frequently hire foreign workers through qualified programs. Since most H-2A workers do not have established credit histories, we’re curious whether conducting credit checks is standard practice or if alternative verification methods are commonly used.

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