Learn More - Click Here!

Thread Options
#2228191 - 01/03/20 01:25 PM Privately Owned ATM and no Banks???
Megaman Offline
100 Club
Joined: Jul 2017
Posts: 115
I am a bank in Michigan, we are opening accounts for customers in California because the customers are telling us that no banks in California will bank customers that have privately owned ATMs (POATM). Did the law change in California regarding banking POATMs? Or is there Banks in California that has decided not to bank POATM?

Return to Top
#2228215 - 01/03/20 04:15 PM Re: Privately Owned ATM and no Banks??? Megaman
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,648
Galveston, TX
And they are coming to you in Michigan. That alone is a huge red flag.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2228231 - 01/03/20 06:46 PM Re: Privately Owned ATM and no Banks??? Megaman
RockChucker, CAMS Offline
Diamond Poster
Joined: Jul 2013
Posts: 1,583
The Country
Like Randy said, huge red flag. California is a crazy place and the banks there are pretty flexible and usually make reasonable business decisions. I wouldn't touch them
_________________________
A successful man is one who can lay a firm foundation with the bricks others have thrown at him.
-David Brinkley

Return to Top
#2228241 - 01/03/20 08:56 PM Re: Privately Owned ATM and no Banks??? Megaman
JWills, CRCM Offline
Diamond Poster
JWills, CRCM
Joined: May 2013
Posts: 1,733
The Mitten State
I am also a bank in Michigan, and thankfully, have not heard of any of this happening near us.
_________________________
Nonsense wakes up the brain cells.

--Dr. Seuss

Return to Top
#2230264 - 02/05/20 02:01 PM Re: Privately Owned ATM and no Banks??? Megaman
TryingtoComply Offline
Diamond Poster
Joined: Apr 2013
Posts: 1,831
The West
I am in CA and I can attest that we have had several instances of customers opening accounts concealing that they were PATMO. We closed the accounts. The issue for us is that they are placing ATMs in MRB locations. The major banks won't open accounts for them and I've seen letters from Chase advising customers to find a new bank.

As the others said, consider this a red flag.
_________________________
TryingToComply
CRCM

Return to Top
#2230270 - 02/05/20 02:53 PM Re: Privately Owned ATM and no Banks??? Megaman
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,416
Cape Cod
Any time someone tries to open an account with a bank that's more than a reasonable distance away from their home or place of work, red flags should be waving. The obvious exception that comes to mind is a bank that's advertising abnormally high interest rates in a quest for deposits, but even in those cases, banks typically avoid accepting interstate deposits that could throw their host state deposit ratios off.

You've received good advice, Megaman. I'd be re-thinking any new accounts you've accepted from California businesses, it I were in your place.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top