Skip to content

Closing Acct. w/Direct Deposits for Fraud-Notice?

Question: 
W​hen closing an account with direct deposits ​for fraudulent activity​,​ is the bank required to give the customer 30 days​'​ notice before closing?
Answer: 

by Ken Golliher:

You are closing an account to which direct deposits are being made due to fraudulent activity?

If the direct deposits are federal payments, you are generally required to give 30 days notice. The same time period could be afforded regarding other e-credits as a courtesy to the customer. Overall, it depends on what you mean by "fraudulent activity."

Answer: 

by John Burnett:

Even the federal regulation gives you an "out" if you are closing for fraudulent activity. The only caveat being that you would have to provide an arrangement for a federal direct deposit within 30 days of the closing date to be made available to the (former) customer.

Answer: 

by Ken Golliher:

Uh-huh, my assumption is that the Green Book language means you think the customer is involved in the fraud, that's why you would be allowed to cut them off at the pass. That's not disclosed here.

First published on 10/29/2017

Filed under: 
Filed under operations as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics