Answer:
Are you talking about sending a notice saying you are going to close the customer's account?If so, there is nothing in the uniform version of Articles 3 and 4 of the UCC that addresses this.
Three things:
- Check state law. Your state may have a unique provision relating to notice to be given prior to the closing of an account.
- Check your deposit account agreement and any other "rules and regulations" of your bank that would be binding upon you. There may be something there that would require you to follow a specific procedure or observe particular timing.
- If neither of the above provides guidance, the common law (court cases) generally would seem to indicate that you should provide at least ten days advance notice. What you may want to do is send out immediate notification to the last known address of your customer that contains a message similar to this one:
"We are closing your account effective (give the date that is at least 10 days after your notice). However, you should cease writing checks on this account IMMEDIATELY and we suggest you contact us as soon as possible to make arrangements to take care of any outstanding items and to deal with any automatic debits or direct deposits you may have set up on this account."
The wording obviously needs to be tweaked to fit the circumstances.
First published on BankersOnline.com 8/6/01
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