A loan officer is insisting that we process a cash advance on one of his past-due loan customers without the card. He has the card number and expiration date, and wants us to key it in. Our cash advance procedures require us to swipe all cards for cash advances. What possible repercussions do we face if we proceed with his demands?

I have understood the regulations to state that you cannot offset loan accounts with a credit card. You might check into that.

Unless you have written permission from the customer, or your loan agreement specifically states you have the right to do this, then I would not touch it. Serious regulatory issues here.

Check how the policy for Cash Advances and your teller procedures for these read. Most likely the procedures may require the card to be swiped.