We have a new customer who has been convicted of writing bad checks (found this out after we began having problems). He has deposited 2 checks (one off a bank that no longer exists and one credit card check off Capital One) that have been returned. He has also deposited 2 additional credit card checks (off of Providian) that were deposited on Nov 1 & Nov 3. We put holds on them that have been expiring. I guess I'm looking for opinions from other bankers about whether you think the checks off Providian should have come back by now if they were going to.

We are debating about placing yet another extended hold on these checks or going with the idea that they should have cleared by now. Thoughts please!!

November 1st and 3rd on the the Providian? No, they shouldn't come back and if they do, you'd have a late claim.

But, if it's a new account where he's already deposited bad checks, then why do you keep him around?

We're just waiting for the checks to come back if they are going to. Hate to give him any money to close it out and then have checks come back. We fully intend to close it soon.

Thanks for the response Swedish Chef!

Why wait to close. This is a new acount and you have had negative experiences!

I agree with FM. You have no obligation to keep the account open.

However, you should call on all recent deposits and ask if the checks have cleared. Find a supervisor if you can - they are usually more sympathetic than a regular employee.

And I personally would report the customer to ChexSystems also. Don't let another bank be a victim!

We tried to verify funds, but got nowhere. Our issue is if we close the account, what do we do with the funds in it? Wouldn't we have to give them to the customer? We don't want to do that until we know for sure that they aren't going to be returned.

Close the account, informing the customer that you will provide a cashier's check for the balance once all deposited items have an opportunity to clear. Assuming that all deposited items are checks on U.S. banks, determine about how long it would take for the circuit to be completed from your bank to the drawee and back if all paying banks adhere to the midnight deadline rule.

You indicated that the last of the checks was deposited on November 3. Today is December 8. It isn't coming back. If it does, you'll refuse the late return.

It's time.

I'm sorry, but I just have to say that there are no bad customers. Just bad checks, and bad loans.

I always heard there just a handful of bad customers...they just keep moving around.

True that!