WHAT TO DO IF YOU ARE NOTIFIED
you are notified of cancellation, the chance you can reverse the banks decision is not
good. In addition to quickly looking for another banker, here are a few tips
and precautions against being selected you might take that others have reported:
you are notified and the bank is AmSouth, do not expect to change their position.
That will not happen! The best you can hope for is a little more
time. They normally give a 30 day notice. In some cases,
they order the operator to immediately stop writing checks, which
closes the account immediately for all practical purposes. In a
few cases, they have worked with the operator for a bit more time.
you receive any type of questionnaire from your bank
about your business, be absolutely sure you complete it thoroughly,
accurately and on time! We strongly suggest meeting with the
banker (branch manager or higher) to review it in person in place of
simply placing it in the mail. If you don't mind being cancelled
by the bank, just forget this step.
your meeting with the branch manager or compliance director:
an explanation of what your business does and how long you have
operated. Make sure you emphasize the close relationship you
have with your customers (see below).
you do not cash checks, make sure you do not refer to
yourself as a check casher. This seems to be the root of the
problem. Click here to see
what one bank has to say about the subject. This is typical
of most banks. The issue is to assure your banker that you are not a Money
Service Business (MSB) and that you have a close relationship with your
customers. If you are an MSB (cash checks) make sure you
understand the Patriot Act and can explain to your banker how you
comply with the Act. Also, the other tips on this page may help.
you are licensed and regulated by the State Banking Department (if
that is the case) and they undertake a background check and
conduct regular audits of your business.
you are bonded, make sure you communicate this.
them that you know your customers very well since a high percent
have been your customers for some time. Point out that
regulators require you to keep meticulous records (again, if this
is the case).
better you know your banker and the better they know you and your
business, the less the likelihood of being cancelled
if you do not receive a cancellation notice it might be a good
idea to have a meeting in the name of prevention..
looking for another bank, your best luck may be a local or community bank
in your area. Some regional banks may take your business
but do not waste your time with Wachovia or Colonial Bank.
Regions Bank (now Union Planters) has taken some accounts, but
they have also cancelled a few.