We have a member that has a personal account with us. They have a Personal Credit Line with a $10,000 limit. At least once a month they get an advance from the line from anywhere from $6000 to $9500 in cash. Shortly after (usually within a few days) the loan is paid off with a check. The check is from a car dealership. The car dealership is owned by the same member.

I feel that this activity is suspicious and need to report it, but I can't put my finger on what they are up. Has anyone else seen this before and what did you report on?

Thanks

Only way to get a real answer is to ask them point blank what they are doing. Then it comes down to whether you believe them or not.

All I can recommend at this point is someone at your bank needs to have a conversation with this customer to inquire more into this activity.

Ditto here. This might be a case of using the credit line to anticipate draws from the dealership, but in today's environment, it's difficult to understand how the dealership could be doing much business. Ask the member what's going on and then decide whether it makes sense.

They could be buying at an auction in cash and selling back to owned dealership.

Are they buying as an individual? (is is legal in your state?)

Anyway as suggested you will not know until you speak with the customer.