Skip to content
 

Reason for Closing Account - Suspicious Activity

Answered by: 
Ken Golliher

Question: 
We have a fraud program that lets us receive collaborations from other financial institutions via 314b information sharing that have reported suspicious activity with our mutual customer. Our customer has not yet conducted suspicious activity with us but we know it's just a matter of time. How can we justify closing the account or what reason can we give to the customer for closing the account without disclosing where we received the suspicious activity from?
Answer: 

Review your contract with the customer; i.e. the documents signed at account opening. It probably gives you the right to close an account unilaterally, with no explanation. There have been numerous threads and even webinars on how to terminate a customer relationship. The path common to every conversation is that the more you say, the more messy it will be...

Just cite the language in your contract and give them a date by which the relationship will be terminated. They know why you are closing their account. While they may be curious as to how you know their account should be closed, you are not obligated to share information with them.

First published on 08/27/2017

Filed under: 
Operations
Filed under operations as: 
Closed/Closing Accounts
Deposit Accounts

Report a problem with this page

Search Topics