Does anyone have a letter that you could share that we could use to help "educate" a suspected check kiter of what check kiting is?

We have a customer that we suspect is kiting, and it was suggested that we send them a letter informing them of what kiting is and what our bank may do (close account) if the activity continues.

Any help would be appreciated!!
Thank you.

Well, they are either kiting or they aren't. It really isn't too hard to figure out. Close the account and file the SAR. Warning such a customer is not the way to go.

Educate them by placing holds on the deposits - they'll learn.

I have always phoned the customer to explain that they are "suspected" of kiting and explained the state law and explained the consequences only if the customer is well known at the bank...otherwise I would do exactly as RLCarey stated!

My experience suggests that most kiters are repeat offenders. Once they realize there's a way to spend money you don't really have, they're not going to let go of the idea easily. Some undoubtedly will respond to a stiff lecture by shaping up, but I suspect more of them will simply be better-educated the next time they try it, and will hide their tracks better.

Next time, you may not discover the activity until you've taken a loss.