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Closing Account Due to Kiting

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We have a customer who we suspect is kiting. We are considering closing the account and writing the customer a letter stating that the account is being closed. Our question is what can say to the customer to explain why we are closing the account?

The one thing you definitely should not do is accuse the depositor of kiting or any other crime. There is a time-honored practice that is best to follow: say as little as possible. Simply inform the customer that bank management has decided not to continue the customer's banking relationship, that the customer should refrain from depositing additional funds (assuming the balance is still positive), and that the bank will mail a check for the balance remaining in the account on [date].

First published on 11/15/2015

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