Close On Hold Account Due to Counterfeit Checks?

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Question:

An account is two months old. This week the customer deposited two checks that were returned as counterfeit. No loss because on hold. Can we close his account?

Answer:

You can close a deposit account at any time, with appropriate notice. Depositing counterfeit checks is symptomatic of either fraudulent intent by your depositor or susceptibility of the customer to fraudulent check scams. If you don't close the account immediately, you certainly should consider refusing any questionable check for deposit.

First published on BankersOnline.com 10/8/12