Bio:
John has been BankersOnline's resident expert for more than 20 years, serving as Executive Editor and frequent presenter in BOL's suite of events.
Burnett joined
BankersOnline in 2004. He is a 1990 honors graduate of the Stonier Graduate School of Banking and is an alumnus of the ABA National Compliance School, where he served on the faculty for several years.
John began his banking career in high school when he started as a teller at a $15 million bank that didn't have account numbers for its checking accounts (he says they actually filed by signature!) He moved to Cape Cod Bank and Trust Company in 1971 and assumed the position of Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT's Board of Directors, and as clerk of the bank's holding company.
He was a member of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He is a regular presenter and participant in BOL Conferences events.
Questions Answered
08/05/2002
Are we allowed to verify the availability of funds to cover a check and are we permitted to verify account number, name, etc when a check vendor calls for that verification.Reading on Privacy leads me to say "no" but I can not be sure.
08/05/2002
I know that Know Your Customer makes exceptions to having a driver's license if the customer is elderly or disabled, as long as they provide compensating proof of identity. What happens when you know the customer personally, do you still need to have them show their driver's license? If not so much for identifying them, but more for having their id number on record?
07/15/2002
What is the rule for a bank web site to list currency rates? Should there be a disclaimer added on the page or can it be contained in a privacy statement elsewhere on the site?
07/15/2002
We accepted a check for deposit to one of our customers' accounts. The item was deposited on 9-13 (in our bank) and wasn't returned to us until 9-25.....it was returned because it was counterfeit. We sent it back to them as a late return however they sent it back to us saying that since it was counterfiet the late return did not apply. Is that true? Do we have any recourse against that bank?
07/15/2002
With regard to that tired old subject of cashing checks payable to a business name or allowing less cash from a business deposit, I have read the various responses referring to corporations or partnerships, but what about sole proprietorships, DBA's?
07/15/2002
A customer notified me 6/11/02 of a counterfeit check that paid on 3/15/02. The check was dated 3/11/01. Do I have any recourse to return the item as stale dated?
07/15/2002
How far in advance of CD maturity do notices have to be sent?
07/15/2002
Do all ACH transaction fall under the 60 day unathorized dispute rule?
07/15/2002
We have been presented with a Power of Attorney at our bank that has been signed with an "X". Is this legal and acceptable? The customer has been in a serious automobile accident and has granted his sister POA on his account. The sister is also named as POD on the account. It is a limited (effective 5/1/02 until 7/1/02) power of attorney and we have no way of knowing if the customer was of sound mind when he made the "X". He is in critical condition and he may be under the influence of heavy pain medication. The sister stated she needs to pay his bills. Also, the POA is witnessed by two people, one of which is the notary. Is this permissible?
07/15/2002
Where in the regs do you go to find more information on dormant accounts? Example: can you close a dormant or inactive account with a very small balance, and what fees can you charge on a dormant or inactive account?
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