It seems to me that there used to be a reason why we as a bank would not allow customers to have zero balance accounts (ZBA). Does anyone have them, and what are the difficulties associated with these? We have a customer who wants to keep account A at zero, and sweep funds from account B to cover the checks that clear account A.
Can anyone enlighten me with this topic? When I hear ZBA or SWEEP accounts, I get a bad feeling, but perhaps this is left over from years ago with regulators. Again, any insight on these types of accounts, would be helpful.
By the way, we do NOT have any specific account type set up for this, nor do we have any 'agreements' that the customer would sign. You know how it is when account officers get creative with their customers - it's like the Wild Wild West.

Thanks