Marketing has a plan to 'offer to close the customer's current bank account for them' when they open an account with us. Has anyone heard of this? They have a flyer that contains an Authorization to Close Account that the customer signs and dates and gives their account number and authorizes the other bank to send a check made payable to us.
One problem I see is that how can we be sure the account is not a joint account and we don't have the joint person's permission.
Thanks!

Don't you just LOVE marketing? Ask them this - would your bank comply with this request?

These switch kits are pretty common. The kits contain tools to help the customer gather the data they need to know to open a new account, including writing down all of the bills they have set up on bill pay, tax ids of account holders, etc., and many contain the notice to the current bank with the request to transfer funds.

Many switch kits contain instructions to fill it out and come in to a branch to review the information and open the new accounts.

If the other bank needs other signatures to close the account and transfer funds, would they not request that from the account holders? I find the request to transfer funds that I have seen odd in that it is a vague request to transfer but doesn't say how...wire, check? I think these requests must result in the other bank contacting the customer for specific information.

Under the Uniform Commercial Code, section 4-403 any signer on an account may direct that it be closed (check your state's version of that section of the UCC). Unless the bank had some sort of account contract language that altered the effect of section 4-403, a second signature would not be required on the form, even if the account to be closed is joint.

I've worked for several banks that offer this, and to my knowledge there has not been a problem.