Skip to content
BOL Conferences
Learn More - Click Here!

Thread Options
#61019 - 02/13/03 04:06 PM Certificates of Deposit
RebekahL CRCM Offline
Platinum Poster
RebekahL CRCM
Joined: Feb 2003
Posts: 874
Big Sky Country
Hello BOL World! I am brand-spankin' new to BOL threads, but I'm loving them so far! I'm also pretty new to my Compliance position, so I really need all the help I can get!

In my shop, we are considering getting rid of our formal "certificates" of deposits - the real, tangible piece of paper that customers can't seem to keep tabs of. Instead, we are considering issuing just the number, a receipt, and the proper terms and disclosures to the customer.

Do any of you do something similar to this, or know of any reason we should not? Frankly, we are getting tired of babysitting the documents for our customers.

Thanks for your help!
_________________________
Me, Type A? Maybe - I'm not done analyzing it yet.

Return to Top
Operations Compliance
#61020 - 02/13/03 04:14 PM Re: Certificates of Deposit
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
Unless you are issuing negotiable CD's that's really all you are doing now. It's only your internal policies that require the customer to produce the document. The current piece of paper you are issuing itself has no value and it's no different than a receipt. There are no problems going this way - it's just a hugh customer comfort level issue. They are the ones that will fight it since the bank has made a stink forever if they lost this worthless piece of paper for the last 30 years. You have to change the way you design and execute your depositor's contract to support the process, but I would say go for it!
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#61021 - 02/13/03 05:06 PM Re: Certificates of Deposit
RebekahL CRCM Offline
Platinum Poster
RebekahL CRCM
Joined: Feb 2003
Posts: 874
Big Sky Country
Thanks! We do not issue negotiable CDs, so I think we will follow through with the change.

I thought of another question, though...

Currently, we have the customer sign the dratted certificate when they want to cash it off. If we get rid of it, however, I assume we must have them sign something else to document their redemption or withdrawal from the CD.

Correct?

_________________________
Me, Type A? Maybe - I'm not done analyzing it yet.

Return to Top
#61022 - 02/13/03 06:30 PM Re: Certificates of Deposit
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
Yes, that's true - and depending on your systems - it can be as simple as signing a withdrawal ticket.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#61023 - 02/13/03 07:08 PM Re: Certificates of Deposit
Retired DQ Offline
10K Club
Retired DQ
Joined: Dec 2002
Posts: 40,766
Turnpike Exit 10
As rlcarey stated, we do use just a withdrawal ticket to withdraw from
or close the CD, whichever the case may be.
_________________________
Get your facts first, then you can distort them as you please. - Mark Twain

Return to Top

Moderator:  Andy_Z, John Burnett