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#1952183 - 08/12/14 05:39 PM Charge off checking; reopen?
Anonymous
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I am trying to get a feel of what other banks do.

Andrew Smith had a checking account at our bank, which we closed, because he was negative for over 30 days. This account was "charged off" and the amount owed, $200.00, was sent to our credit department. Prior to closing Andrew's account, we sent him seveal notifications. The account was closed 2 months ago.

Andrew came in to the branch today to deposit a check into his account. He claims he had no idea the account was negative, nor that it was overdrawn. Having dealt with the customer in the past, I find this hard to believe.


A decision was made that if Andrew paid the $200.00 he owed us, we would open him a new account.

Do other banks do this? In my mind, once you have shown neglect, you shouldn't get a "second chance." We had the potential to lose $200.00, why would we put ourselves in the same situation? Naturally there are exceptions to every rule: Andrew's excuse was "he didn't know."

Any thoughts?

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#1952200 - 08/12/14 05:45 PM Re: Charge off checking; reopen? Anonymous
Anonymous
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Orig anon poster here:

I should add: Andrew keeps a ZERO balance in his account. I know you can't pick and choose your customers, but if given the choice, I'd let him wander up the street to another bank.

He keeps a ZERO balance in his account; ither that or his is constantly overdrawn (our vault, naturally) and wants his overdrafts refunded. Andrew bullies the tellers into trying to give him cash back greater than his available balance (he'll deposit $375.00; we make $100.00 available right away; he'll want $225.00 back....) I was happy when we closed him and now extremely frustrated that we reopened him. Clearly this was not my decision, nor did the person who made this decision contact me.

Again, I am curious if other banks have a policy that states if we close you out, due to overdrafts, we won't open you again.

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#1952202 - 08/12/14 05:46 PM Re: Charge off checking; reopen? Anonymous
Anonymous
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Let me try this sentence again:

He keeps a ZERO balance in his account; either that or he is constantly overdrawn (our fault, naturally) and wants his overdrafts refunded.

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#1952232 - 08/12/14 06:00 PM Re: Charge off checking; reopen? Anonymous
Doug Hendrickson Offline
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Doug Hendrickson
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We don't have a hard and fast policy, but generally we would NOT re-open such an account. I would be recommending that we not open another account for him; how much does management want him to beat them for before they get the message?
Last edited by Doug Hendrickson; 08/12/14 06:00 PM. Reason: spelling/grammar
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#1952252 - 08/12/14 06:12 PM Re: Charge off checking; reopen? Anonymous
HappyGilmore Offline
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Pulling people out of the ditc...
Originally Posted By: Anonymous
I know you can't pick and choose your customers


you can't? when did that change? of course you can pick you customers, nothing restricts you from doing such.
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#1952305 - 08/12/14 07:13 PM Re: Charge off checking; reopen? Anonymous
Doug Hendrickson Offline
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Doug Hendrickson
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There are no fair deposit laws (yet; but give the CFPB time!).
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#1952326 - 08/12/14 07:37 PM Re: Charge off checking; reopen? Anonymous
RBanker Offline
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Austin Texas
Sounds like he has cost the bank more in time and effort than he is worth - if he's gone, I'd consider that a victory and move on to taking care of customers who want to bank with me.
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#1952330 - 08/12/14 07:46 PM Re: Charge off checking; reopen? Anonymous
CULady Offline
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Joined: Sep 2007
Posts: 493
WA
We do, but it is really a case by case basis. We are in a college town, so we frequently have people leave for the summer and come back unaware of their account closing out for fees, negative balance, etc. Most of those we are willing to reopen.
HOWEVER, if I knew that the member was a bully to the tellers like that, I would put my foot down and say NO WAY. Of course, it is much harder to do that now that they have already reopened the account... But there is nothing stopping someone from collecting the $200 he owes and shutting down the account again...

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#1952332 - 08/12/14 07:47 PM Re: Charge off checking; reopen? Anonymous
HappyGilmore Offline
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Joined: Jun 2004
Posts: 19,449
Pulling people out of the ditc...
Originally Posted By: Anonymous
Prior to closing Andrew's account, we sent him seveal notifications.

He claims he had no idea the account was negative, nor that it was overdrawn.

Any thoughts?


so the acount has been closed for over 2 months, but OD for another month before that...during this 3-month period, did he try to access the account via debit card or write a check? and he didn't respond to any of the notifications that were sent?

sorry, story not adding up for me, i would not reopen, although i would collect the $200 he owed me.
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