How do I go about closing an account for a customer we no longer wish to do business with? Can I simply send a letter stating that in 30 days we will close his account due to his behavior or can we simply close the account and send a check for the balance.

That's what we've done in the past, but we didn't necessarily wait 30 days. In my former life, we had one customer get very angry with the teller and then tell the branch manager that he 'could have reached across the counter and slapped her'. Needless to say, the security officer sent him a letter and a check very quickly.

We have verbiage in our Terms and Conditions brochure that state the we may close an account based on the handling of an account.

Opening an account is not a right, it is a privledge.

I'd shy away from indicating that the closure is "due to his behavior." That gives him something to ask or argue about. Simply state that you will close the account, give the deadline, ask him not to make further deposits, etc.

I would base the deadline on the circumstances as Skittles and BOL User alluded to. If the customer becomes harassing or threatening, then IMO immediate closure is warranted. If the situation is not particularly threatening, a courteous timeframe could prevent the situation from escalating.

I have done this before and gave 10 days for them to get things squared away with the account.

Our Deposit Agreement states that we can close an account at any time, with or without cause. We typically send a letter saying that in 7 days the account will be closed. Usually, the customer closes it before then.

Keep in mind that if your customer is set up for direct deposit of federal government benefits (like Social Security), I believe you have to give them 30 days notice before closing the account.

We base the time frame on whether or not they have a Social Security, VA or other direct deposit - if they don't we close it right away.

You are not required to maintain an account for anyone! Send a letter with notice based on ACH pmts. and close it with a cashier's check unless he does it first. I wouldn't give a reason why either. I've always used the phrase "I think you might be happier dealing with one of the other banks in town."

So no one thinks informing the customer MAY (STRETCH) alter their behavior if they realize banks will not do bussiness with them acting like a clown?

It may alter their behavior, but it is too late at this point. There are too many good customers out there to waste time and resources on those who choose not to follow YOUR rules.

Agreed

In my experience, a 'talking to' may help the customer keep his/her behavior in check temporarily, but it doesn't take too long for the beligerance to return.

Once, just once, it worked out with a good experience.

I was just getting yelled at and berated...got called a 'cold hearted bi***' to which I replied, "You call me that and you want me to do what for you?" He kept going on and on. So, I said, "You know what? Enough. A cashiers check will be given to you representing the funds in your account. What time can you pick it up?"

Silence and then some muttering....and his attitude actually changed right away and we kept the account open. I was the only person he would talk to from then on and he became pretty decent and didn't have any other problems with him from then on.

But, yeah, that's rare.