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#1609744 - 09/28/11 02:00 PM Safe Deposit Boxes for NON CUSTOMERS
Anonymous
Unregistered

IS there any reg/compliance rule that says we CANNOT OFFER Safe Deposit Boxes to NON-Customers?

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#1609752 - 09/28/11 02:08 PM Re: Safe Deposit Boxes for NON CUSTOMERS Anonymous
Anonymous
Unregistered

Not that I know of. I'd look to risk management, and bank policy.

Can you ensure that you will be paid for the box, if you can't debit their inhouse checking?

BSA:
Can you ensure that CIP will be properly applied?
Has the person come from very far away, passing up other banks and other boxes to get to yours? (may indicate suspicious activity)

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#1609825 - 09/28/11 03:31 PM Re: Safe Deposit Boxes for NON CUSTOMERS Anonymous
osucpa Offline
Diamond Poster
Joined: May 2011
Posts: 1,402
A safe deposit box is a product and/or service the bank offers. It can be offered to anyone. If a person rents a safe deposit box they become a customer of the bank. I assume you are saying because of limited number of boxes, you do not offer a box to an individual unless they have other account relationships with the bank.

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#1609830 - 09/28/11 03:36 PM Re: Safe Deposit Boxes for NON CUSTOMERS osucpa
Anonymous
Unregistered

My bank used to offer SD Boxes to non-customers. A large number of those boxes are now sitting on our past due list, and we have little hope of ever collecting from these people. I would strongly advise against it from a risk management perspective. We now require a new box opened to be for an existing customer with other accounts at our bank. We also strongly encourage the customers to set up payments via auto-debit from their DDA account.

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#1609836 - 09/28/11 03:40 PM Re: Safe Deposit Boxes for NON CUSTOMERS Anonymous
Anonymous
Unregistered

Originally Posted By: Anonymous
My bank used to offer SD Boxes to non-customers. A large number of those boxes are now sitting on our past due list, and we have little hope of ever collecting from these people. I would strongly advise against it from a risk management perspective. We now require a new box opened to be for an existing customer with other accounts at our bank. We also strongly encourage the customers to set up payments via auto-debit from their DDA account.


And... at some point, we'll have to bite the bullet and pay to have these boxes drilled out, waste the time of 2 bank officers to inventory anything in the boxes, and deal with the hassle and expense of escheating this stuff to the state. Most of these end up being empty (the customer never returned and never paid because they already emptied the box!) Meanwhile, we've lost the money we could have made by renting out this box. Trust me, it's a nightmare. Don't do it!

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#1609854 - 09/28/11 03:51 PM Re: Safe Deposit Boxes for NON CUSTOMERS Anonymous
Anonymous
Unregistered

All very good points....and will help in making a decision on how we move forward. thanks.

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#1610129 - 09/28/11 07:10 PM Re: Safe Deposit Boxes for NON CUSTOMERS Anonymous
J2C Offline
Diamond Poster
Joined: May 2004
Posts: 1,475
Big Brother knows and that's a...
We do not offer to non-customers. SDB is for customers that will also have a deposit relationship for the exact reasons as discussed above.
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#1610222 - 09/28/11 08:31 PM Re: Safe Deposit Boxes for NON CUSTOMERS J2C
BrendaC Offline
Power Poster
BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
We started renting to non-customers years ago and were actually successful in leveraging a number of single-service customers into multi-product relationships. Whatever gets them in the door!

I didn't notice that we experienced any type of huge increase in past dues once we changed our policy to rent to "non-customers".

It is not unusual to have to drill boxes of individuals that were, at one time, "well known" customers. It can go either way.

Make sure you enforce a rule that no person enters a box in a past due status. It will be cleaned out.
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#1610234 - 09/28/11 08:47 PM Re: Safe Deposit Boxes for NON CUSTOMERS BrendaC
Anonymous
Unregistered

The problem we have had at my bank is the SDB customer cleans out their box just before the next payment is due, doesn't close the box, doesn't turn in the keys, then never makes payment again. Now, that box has to sit for X years until we have to pay over $100 to have it drilled open, inventoried under dual control, re-keyed, and finally we are able to re-rent it.

If that box was owned by a customer with another DDA account relationship with us, we would have exercised our right of offset and debited the DDA account for the rent due.

We never allow access to a box in a past due status for any SD Box customer.

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#1610254 - 09/28/11 09:09 PM Re: Safe Deposit Boxes for NON CUSTOMERS Anonymous
BetsyS Offline
Gold Star
Joined: Jun 2009
Posts: 468
What do you do when a customer ends their deposit relationship with you? Do you let them keep the box open?
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#1610287 - 09/28/11 09:54 PM Re: Safe Deposit Boxes for NON CUSTOMERS BetsyS
Anonymous
Unregistered

If a customer is closing their deposit relationship with us, we require that they close their box as well, escort them to the vault to empty their box, sign the contract to close it out, collect the keys, and collect any moneys due before we close the deposit accounts.

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#1610310 - 09/28/11 11:17 PM Re: Safe Deposit Boxes for NON CUSTOMERS Anonymous
Rocky P Offline
Power Poster
Joined: Jun 2003
Posts: 7,424
Florida
Originally Posted By: Anonymous
If a customer is closing their deposit relationship with us, we require that they close their box as well, escort them to the vault to empty their box, sign the contract to close it out, collect the keys, and collect any moneys due before we close the deposit accounts.


Interesting concept - from a procedural standpoint -
Is that specified in the safe deposit contract?
Would the customer be given a refund if they are forced to close a prepaid box mid-term?
What would be done if a customer draws the account to $0.00 by check?
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