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#1534378 - 04/12/11 04:05 PM MSB unregistered
nemsi Offline
Gold Star
Joined: Nov 2005
Posts: 383
We have a customer (C-store) the bank told to register as a MSB- monitoring indicates that they are operating as an MSB. The branch employeee was told that the business is being sold- probably to a "cousin" since these types of stores seem to be sold about every 2 years to a family member! This was about a month ago and they continue to use the account- limited number of debits which are primarily ach transactions. My question is, can the bank refuse to accept 3rd party checks in their deposits? I so want to do that!!!!

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#1534430 - 04/12/11 05:13 PM Re: MSB unregistered nemsi
BSABecky Offline
100 Club
BSABecky
Joined: Mar 2011
Posts: 126
Seymour, IN USA
At least at my bank, that would be up to the branch manager. At the very least, I would suggest them placing uncollected funds holds on every deposit that contains checks.
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#1534483 - 04/12/11 06:13 PM Re: MSB unregistered BSABecky
nemsi Offline
Gold Star
Joined: Nov 2005
Posts: 383
Thanks BSABecky I appreciate your response.
I'm not asking if I have the authority within my organization to make the decision. I want to know if the bank say state that we will not accept these checks in the deposit. We certainly would do that if a corporation wants to deposit a check made payable to another corporation. Since these checks are issued to individuals and not to our customer I would think that we can refuse to accept them for deposit into the business account.

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#1534506 - 04/12/11 06:37 PM Re: MSB unregistered nemsi
Georgia Plum
Unregistered

You can refuse them, but you have been accepting them, so there is some precedent. It might be better to set a time frame, say 30 days, that he either shows you he's registered as an MSB, or the account will be closed. Send it certified/return receipt and also hand deliver him a copy.

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#1534548 - 04/12/11 07:13 PM Re: MSB unregistered
nemsi Offline
Gold Star
Joined: Nov 2005
Posts: 383
Thanks GeorgiaPlum. That's what we normally do so i guess that's what I'll do this time as well.
This account has been so frustrating that I was looking for a quick fix. A gotcha moment cry

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