After closing a money market account due to excessive transactions, can the bank turn around and open another money market account for the same individual?

I found an opinon by John Burnett from February 2003 that indicated he thought this would be within the spirit of the regulation to do so if the customer assured the bank he would not violate the restrictions again.

I think the customer has already had at least two chances, if not more, to avoid excessive transactions.

Am I being too harsh???

bb

This is usually a balance between the work you'll put into monitoring and what CSRs want to sell. They want the MMDA. The idea is that the customer knows you're serious and they probably don't want to go through this again.

There is certainly nothing that says you must open a new MMDA. If you had a lot of hassles on this one before, then recommend you don't re-open. If you're willing to try, let them do it. The effect is that either the bank down the street starts counting the excessive items, or you have a reformed "6 per statement cycle" depositor.