We have a customer: John Smith. John smith has a personal loan with the bank that is 90 days past due.
John Smith is the sole signer on a business checking account: John Smith Enterprises, Inc. When the account was opened, we verified that the business was registered and in good standing with the state. Now that his personal loan has gone to collections, our collections officer noticed that the business license for John Smith Enterprises, Inc. was revoked by the state a few years ago because they didn't file their annual paperwork.
What should be done about this business checking account now that we know it is no longer registered with the state? I would say close it out with a cashier check made out to the business name, but collections is looking for a way to get these funds for the past due personal loan. I don't see how that is possible.