According to the Community Association Institute, approximately 21% of Americans live in common-interest communities. For banks, particularly those that are in FL, CA, TX, IL, NC, NY, MA and GA (in order) on a client acquisition-cost-to-cumulative-lifetime-value basis they are one of the best clients to have. The reason for this is that they are plentiful (over 342k of them in the U.S.) they have high deposit balances, and they generate large fees with their lock box activity.
Tag: Lock Box
It was in the 1930’s when in an attempt to stimulate lending to help post-depression economic growth, the U.S. government gave certain banks access to U.S. post office boxes so that they could collect their due loan repayments. Banks would enter their local post office after hours with their keys, open their PO box, grab the mail that was set to be delivered the next day, deposit the receipts and deliver the remittance document.