Definition of Reasonable Notice (Closing Accounts)

Question:

How would you define reasonable notice used in the following terms and conditions disclosure? We may also close this account at any time upon reasonable notice to you and tender of the account balance personally or by mail. Reasonable notice depends on the circumstances, and in some cases such as when we cannot verify your identity or we suspect fraud, it might be reasonable for us to give you notice after the change or account closure becomes effective.

Answer:

So, this is what your disclosure says and you want to know what it means? The language is intended to give you the right to close the account, not spell out the details on how you would do so. It contains enough weasel words to allow you to implement it according to the circumstances which might include among other things:

* Consumer vs. business account
* Volume and types of items deposited
* Account overdrawn vs. positive balance
* Reason for closure; e.g. kiting vs. suspicious activity vs. repeated NSF items

Some of the perceived risks to your bank are 1) the customer will authorize a payment that was properly payable from the account unaware that you have unilaterally closed it or 2) checks deposited to the account will be returned unpaid and you have nothing to charge them against and 3) the customer is involved in illegal activity and you are facilitating it.