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#1698324 - 05/10/12 06:33 PM Excessive Transaction - Third Notice
Anonymous
Unregistered

When our customer exceeds the transaction limitations on a money market account in a 12 month period, they are sent a notice to come in to the bank to change the account to a checking account. If their account is not changed by X, their account will be changed to XYZ Checking. A copy of the terms for the new account type are enclosed with the letter.

The third letter for savings accounts says to come in by X date or your account will be closed. We do not want to send money out the door, so can we convert to a checking account?

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#1698355 - 05/10/12 07:19 PM Re: Excessive Transaction - Third Notice Anonymous
Dani York, CRCM Offline
Power Poster
Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
Provided you give them a new TIS, I see no reason why not, unless you have numbering issues (example-our bank uses a system where the first number of the account tells you the type-checking, MMA, or savings). If you do have number issues, you would want to close the savings and open a new checking, then dump their funds in that account....of course, you will have to get them to come in a sign new signature cards if you go that route....
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I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

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#1698442 - 05/10/12 08:59 PM Re: Excessive Transaction - Third Notice Anonymous
Anonymous
Unregistered

I was told by out internal auditor (also found on BOL) that when you are changing accounts do to excessive transactions on limited accounts, a signature on the new account is not required. As stated above, you will need to send the TIS, etc regarding the new account. We did put it our letter that we would like them to sign sig card.

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#1705145 - 05/31/12 04:35 PM Re: Excessive Transaction - Third Notice Anonymous
Brandy Brennan Offline
New Poster
Joined: Aug 2008
Posts: 21
I am currently researching the signature card question. Where did you find on BOL that a new signature card is not required even if you change the account number and account type?

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#1705979 - 06/01/12 09:25 PM Re: Excessive Transaction - Third Notice Anonymous
Compli(cated) Offline
100 Club
Joined: Mar 2011
Posts: 185
Wisconsin
Just a thought, but why not include it in the new savings accounts disclosures/agreement that the account can be converted to a checking account due to excessive transactions even without the customer signing new signature cards. Or that the customer will be required to sign new ones the next time they come in after the conversion, if that's the route you want to take. Then you would still need to give them new disclosures, but would not need to worry about the signatures.
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