Check your bank statements people!

Not sure where to put this, but I was shocked to see this when I went on-line to check my bank statement and to transfer some $$.
Now usually I just skim over my on-line statements (no more snail mail-my choice) to make sure the #'s match up. This time I noticed the lengthy paragraph at the top and low and behold

Effective February 27, 2010, The Federal Reserve Bank will consolidate to a single check-processing region. There will no longer be any checks that are considered nonlocal for funds availability which reduces the amount of time that funds from a check(s) you deposit can be held by Valley Bank.

What the hell does the above mean??

Exception and/or Reasonable Cause holds can also be placed and your funds may not be made available until the 7th business day after the day of deposit. If you have a new account 30 days or less, a check(s) you deposit may not be made available until the 11th business day day after the day of your deposit. If a hold is placed on your account you will be notified with a Notice of Delayed Availability.

What reasonable cause??


I moved into a local (8 branch) bank about 4 yrs. ago and have never had any problems but this is a little disturbing.

This is the thread about Citigroup holding deposits:
www.abovetopsecret.com...

I'm gonna call them this morning and inquire about this.

[edit on 26-2-2010 by 5 oClock]

edit: fixed title k/j

[edit on 26/2/2010 by kosmicjack]

I have had a few holds placed on checks in the past. It is usually a bigger check. I get told it's because of fraud prevention, but I think it's a hidden policy of the bank to have an extra week to use your money. In the age of computers, money transfer should happen in a day, not 11 days. banks are just another racket, but unfortunately, one you can't do without.

Sorry, can't tell you what it means. Banks like to call things by their...long names just so you don't no whats going on.

I don't use banks, I'm not in or ever will be in debt, i barely use money. I would follow what i am doing if you don't want this new world taking over aspects of your life.

reply to post by network dude

You're right, they invest that money while you wait. They have long done that that with direct deposit government checks because they are predictable and it looks like now they're getting even more greedy giving them more time to swing more financial deals.

reply to post by network dude

I understand hold's on new acct.'s and for large checks if you dont have the nut in your acct, to cover it. Not my 1st rodeo (got a couple of yrs. under my belt)
But this is right in line with the Citi crap, at least that's how I'm reading it.

reply to post by gandhi


Good for you man But I am apart of this debter nation and trying like hell to be where you are, in the meantime, my direct deposits and on-line banking make life e-z as far as banking goes (can't remember last time I licked a stamp)


Anyway, I sent them an e-mail and will be calling them this morning.

[edit on 26-2-2010 by 5 oClock]

At least there's no effect on Electronic Fund Transfers. Just checked my checking account this morning in the credit union in Ohio I've been a member of since 1993, and my paycheck from my job here in Colorado made it in A-OK last night, as is normal.

It used to take my apartment complex about a week to cash my rent check in the past. A couple months ago their bank went to a different system that cashes the check the same day they deposit it by scanning it and turning it into a somewhat EFT.

Originally posted by Ferris.Bueller.II
At least there's no effect on Electronic Fund Transfers. Just checked my checking account this morning in the credit union in Ohio I've been a member of since 1993, and my paycheck from my job here in Colorado made it in A-OK last night, as is normal.

Don't get me wrong, I'm happy with what this bank offers but I want to know what would be cosidered "ReasonableCause" to hold MY MONEY??

Much better than my credit union!

3.51% checking interest
2.01% savings interest

secured.goldleaf.com...

most interesting turn of events... one bank, an international bank (citigroup) and the other, an 8 branch local bank... both doing the same thing?? hmmm? keep us updated cause im curious...

Originally posted by TheCoffinman
most interesting turn of events... one bank, an international bank (citigroup) and the other, an 8 branch local bank... both doing the same thing?? hmmm? keep us updated cause im curious...

Actually sounds like this small bank is ahead of Citi??

From your post C-man:
www.abovetopsecret.com...

"Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change,"

My bank is saying this goes into effect on 2-27-2010

I still need to know what would be considered "Reasonable Cause"

I'll post as soon as I get a reply, I would like it in e-mail form so I can post it on here.

[edit on 26-2-2010 by 5 oClock]

No reply from my e-mail or phone call yet!

Has anyone else recieived any type of notice from their banks???

The federal reserve bank has consolidated The entire nations check clearing service. read below

The Fed has been consolidating operations in numerous cities nationwide for years and had tapped Cleveland a year ago to be the only office expected to survive.
The Fed made that official Thursday and said the remaining check-processing activity in Atlanta will move to Cleveland effective Feb. 27..
About 270 people work in check operations in Cleveland; this announcement secures those jobs.
The need for check processing has diminished over the past decade with the growing popularity of electronic payments and credit and debit cards. Even with checks that are written, more retailers and banks are processing them electronically, eliminating the need to handle the actual paper check.
Historically, the Fed has processed 40 percent of the nation's checks. The Fed often acts as the middleman on checks after they're deposited in one bank and drawn on another. Banks with a lot of checks passing between them, such as Key and National City/PNC, will exchange checks directly rather than going through a third-party.
Cleveland's check office will continue doing both check processing and check adjustments (needed to reconcile any discrepancies). Cleveland beat out processing operations in Atlanta, Dallas and Philadelphia, and beat out adjustment offices in Chartlotte, N.C., Jacksonville, Fla., and Portland, Ore.
The consolidation over the last year eliminated 750 jobs in other cities. No jobs are expected to be added locally, spokeswoman Anne DiTeodoro said.
In recent years, check-processing offices closed in Columbus, Pittsburgh and Cincinnati and were folded into Cleveland. Atlanta will remain as the Fed's only electronic check processing office.

reply to post by human8


Thank you. Let me put it more simply: One of the chief functions of central banks (like the "Fed") is to process checks and other transfers from one bank to another. The Fed is streamlining a bit, which means checks will now clear in seven business days instead of ten business days. It is not only not sinister, it is an improvement. Most banks assume that routine checks are good, especially if they are significantly less than the balance of the account they are being deposited into and will allow the depositor to draw on the funds. If the check is suspiciously large or exceeds the balance of the depositor's account, they will wait for the check to clear the central bank. They do not officially have access to that money until the check has cleared.

reply to post by human8


Tks,
That makes sense considering that actually writting checks has/ is becomming a thing of the past, I can't remember the last time I wrote one

Classic Clint Eastwood, cashing a check for $3.
2 single, 2 quarters and 5 dimes. HA! What if they told him he'd have to wait 7 days???

Originally posted by Ferris.Bueller.II

It used to take my apartment complex about a week to cash my rent check in the past. A couple months ago their bank went to a different system that cashes the check the same day they deposit it by scanning it and turning it into a somewhat EFT.

Yes, right here is your ansewer to "There will no longer be any checks that are considered nonlocal for funds availability which reduces the amount of time that funds from a check(s) you deposit can be held by Valley Bank.

Just means they are able to prosses out of town checks faster now for some reason. Sounds like an effort to free up funds faster in some effort to get folks to spend more or something. Maybe nothing just faster.

My bank(s) have always had a 7 day deposit availability policy. AFAIK it has never been implemented.

I think the only thing new that you're seeing here is the elimination of "non-local funds". This means there's no such thing as an out of State check anymore.

reply to post by DJW001


That's fine that processing checks will be more streamlined, but as most of you know physically cashing a check is becomming a thing of the past. It's about as useless good news as Yeah! you hit the $20,000. jackpot with 20,000 other people.

What gets me is the statement that followed that wonderful news

Exception and/or Reasonable Cause holds can also be placed and your funds may not be made available until the 7th business day after the day of deposit. If you have a new account 30 days or less, a check(s) you deposit may not be made available until the 11th business day day after the day of your deposit. If a hold is placed on your account you will be notified with a Notice of Delayed Availability.

Still waiting to hear what the "Exception and/or Reasonable" holds are.

I wonder how many people have actually started stashing cash at home? Between the walls and studs of their homes or burying it on the garden.
The bad news is they don't make coffee cans like they used to.

OK I'm starting to answer my own questions here with a little ATS help:

It appears Exception are for new acct.'s although my statement did not say NEW ACCT.'s

www.fdic.gov...

Still trying to find out what "Reasonable Cause" is.

It appears the Federal Reserve is attempting to do a couple of things with this policy. First is the elimination/reduction of "float" - how many days a check takes to "clear" the system. Geographically, check transfers were processes through regional Feds. The balance of these deposits was used to compute certain reserve requirements. Thirty years ago, if you "missed a Fed run" it meant potentially serious financial implications for the bank (depending on how many items and how much money). Back then, checks cleared the local/regional Federal Reserve from what ever bank received them - and the Fed processed these checks to the originating banks. Non-local checks had to be passsed through multiple Feds and there were regulatory requirements that determined the maximum processing delays. So it was relatively easy to manipulate the system by writing checks that wouldn't have proper funds available at the time they were written - you would have at least 3 days "float" as they called it.

For the banks, the same sort of "float" happens, only it determined their "balance of payments" and reserve requirements.

For most of us (except financiers and other money-moving "fraudsters"), this just means the money arrives and departs out accounts a little more swiftly.

reply to post by 5 oClock


In short: any reason the bank thinks is "reasonable." Usually it will be because a sum is suspiciously large, there is suspicion of "check laundering," it's drawn on a particularly obscure bank or the poster has a history of fraud, etc, etc.