When sending a letter to close a member's accounts due to multiple fraud incidents, are we required to include verbiage relating to their right to re-consideration?
The NCUA has a regulation that will not allow a federal Credit Union to close out a member's relationship without being approved by the NCUA Board. However, the FFIEC manual allows for an institution to close out a member due to multiple SARs. Does the FFIEC Regulation supersede the NCUA regulation that requires approval before closing out a relationship?
Was wondering if bankers can provide examples of what is allowed to be provided to their customers when they close accounts due to AML, Legal or Adverse Media concerns.
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.
If I send the CloD three days prior to closing, on the date of closing should the closing disclosure be dated the day of closing (issue date)?
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?
Are there set rules on the Cash to Close changing from the LE to the CloD? For example, borrower requests a cash out refinance. The LE discloses in the Cash to Close section that they will be receiving $50,000. We find out prior to closing they want to pay off a loan and receive the leftover money at closing. So the money to the borrower has drastically been reduced. Are the changes in cash to close regulated by certain guidelines?
by Richard C. Insley, CRCM
Truth in Lending and Regulation Z apply to all consumer credit, that is, credit requested by a consumer and for the use of the consumer. Business loans are exempt from Regulation Z.