How are other banks handling the Data Match issue of notification to their customer base?

We complied with our state law and found matches on our customer base. Now the state has sent in the court orders to freeze accounts. Is anyone sending a letter to your customer about the account freeze? If so what if the account is joint letter addressed to both parties or only to the party the court order named?

Lela:

Some other banks have discussed Data Match. Look at 8/30/01 post by Joe B. Sounds like you are not alone.

I talked with a rep. from the Bureau of Child Support Enforcement and he told me the following: It was not necessary for the Bank to contact the customer because they will be getting the freeze Notice also, however he said it would probably be a good idea to contact the customer(s) if there is more than one name on the account. He also said the customer will not receive their freeze notice until 3-5 days after the Bank receives theirs, so to avoid angry customers, you may not want to contact them the same day you put the hold on or the Bank will have to answer all kinds of questions. Banks are only required to hold the amount that is in the account on the day the Bank receives the freeze notice. Also, Banks can charge a processing/service charge fee and that amount can be taken off the top of the funds being held. Wouldn't it be nice if Banks received these procedures in writing instead of us having to guess at everything? But then that would make life easy and heaven forbid that!!

I believe the ability to debit a processing fee off the top may be a state by state rule.

I want to do this but was unofficially advised that Texas law won't allow it.

While reimbursement is allowed, the state has no budget for it. The banks once again are the police.

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Andy Zavoina
Opinions stated are not necessarily that of my employer.