Banks Dump Collection Agencies – Puts ACH Payments at RISK!

A recent trend indicates major banks; including US Bank, Bank of America, BMO Harris, Capital One to mention a few, are dropping collection agencies –with little or no notice. Even in this so-called post “Chokepoint” world the trend appears prevalent.

Online Comments from the last 30-days include:

Hi, I have been using Bank of America for over 10 years and have many accounts with them. I just received a notice stating they are closing my accounts. I have an A+ rating with the BBB and only have had 10 complaints in 10 years, no bounced checks….and there only reason was the classification “collection agency”

We also switched … after a battle with US Bank, who claimed, after stringing us along for weeks, that they no longer do business with collection agencies

Capital One sent the same type of letter to our company after 6 years with them. We too switched …it was a quick and smooth transition.

Well… here in Wisconsin… after many failed attempts and many fiascos… i ended up getting help… i did try with BMO Harris and they told me a few weeks that they had to close my account for the same reason…

We had our business credit cards with BOA {Bank of America} and they out of nowhere did the same to us and closed our cards with out any notice at all. I tried to use it one day and declined. When I called they refused to give me an explanation as to why and referred me to “our agreement” which states they may cancel an account for any reason they choose and do not have to tell you why.

We had the same think happen to us over a year ago with BOA {Bank of America}, after being with them for over 10 years.  We had a good rapport over that time so they were flexible with allowing enough time for us to find a new bank.  When I pressed for the reason they were dropping us, their explanation was that it was a corporate decision and that “third party processors” were considered high risk business

Something worth considering – banks often offer ACH processing at below cost to win commercial accounts – and when you lose your account – so goes your ACH.  While it’s irresponsible not to take full advantage of value added banking services, it’s also rational to prepare for loss of said benefits – at the bank’s discretion.

Consider establishing a relationship with an ACH processing partner that has the ARM Industry covered – and can sustain your ACH services. New programs like BillingTree’s QUICK-ACH™ means agencies get settlement the next morning, have more hours to process per day, and are backed with a network of banks that understand your business.

Learn more about BillingTree and their ACH processing offerings here.

Back to the blog