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#2095463 - 08/26/16 02:42 PM deposit account for collection agency
Cher Offline
Member
Joined: Oct 2003
Posts: 98
Florida, USA
We have a prospective customer that is a collection agency and they currently bank at a "big bank" and utilize RDC services. The checks are sometimes made out to the agency and other times made out to the client of the agency. What type of documentation should we be requiring for such a client? I am considering obtaining a copy of their standard agreement to ensure that it has language that permits them to negotiate check payments on the client's behalf, and then maybe requesting a random sample during the annual RDC review and site visit. Any takers?

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Deposits and Payments
#2095529 - 08/26/16 04:25 PM Re: deposit account for collection agency Cher
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,244
Galveston, TX
Why, if you are not in the business of banking such a customer would you want to take on such a high risk customer? I hope you are charging them an arm and a leg for what it is going to cost you. Why are they trying to leave the "big bank" and are you sure they are not being asked to leave?
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