We have a customer that we have been monitoring for some time that appears to be structuring and kiting. We are at the point where we would like to close the account. I would like to know if any others have had this type of situation and if so, what did you tell the customer why you were closing the account. Thank you.

"We are exercising our right to terminate your account relationship with us per paragraph X of your depositor contract."


Every bank reserves the right to terminate account relationships (I hope).

So basically, you tell them nothing.

The less info the better. Exactly what Randy said.

I know it's not the most comfortable conversation to have with a customer - but it protects you & the bank.

One of several prior threads.

Even if you haven't expressly reserved the right to terminate, the deposit contract is open-ended as to expiration, and you can terminate it without having to provide a reason. Just be sure to determine first whether you have provided for a notice period in your agreement, and give notice accordingly.

And avoid including the ubiquitous tagline in your notice: "If you have any questions, please don't hesitate to contact us." You don't want to invite questions, and you aren't trying to be customer relations oriented here. You are telling the customer the account is being closed.

as above

Generally they know and do not question it