Strange happenings at local bank office...

Hello,

Its been awhile since I have been on to post anything, but of course lots of lurking and reading of the site to keep updated.

Many of the threads as of late point to the looming certantiy of the social/economical colapse that may be just around the corner...

Anyhow my brother stopped by the other day to go fishing and he was upset with his bank. He just stopped in there on the way to my house and tried to cash a check that he had recieved made out to him for child support. The bank refused to cash the check because he only had $350 dollars in his account and the check was made out for $400.

I explained to him of course they wouldnt cash it as that would overdraw his account but then I realized the check was made out to him not comming from him! The bank wouldnt cash it through the drive through so he went inside spoke with someone else etc. and they still denied him service as the funds in his account didnt cover the balance of the check.

That would be like you or me getting our paycheck in the mail walking in to cash it and the bank saying no your account doesnt have enough funds to cash this check (only by $50 in his case) and then telling you to go try somewhere else!

This was yesterday on a Sat. and they said something about the check wouldnt clear until at least Tue. so the bank was afraid of a $50 difference for 3 days. Man if thats the case they really are broke!

I also wanted to ask if anyone else has experienced anything strange like this at thier local bank etc.

My bank has been like that since I can remember. I can't cash any checks from anyone unless I have the same amount in my account. They say it's because if the check bounces, they want payment so it will come from your account. I can deposit the check, but have to wait until it clears until I can draw from it. I hate this, but my bank also does this.

Actually, that's pretty much standard policy with regards third-party checks ... with most banks giving you immediate credit for/access to the first $100 and the remainder becomes available once the check clears.

For those on a rather tight budget or income that can present a problem with check deposits made after hours on a Friday ..... the remaining funds typically won't be made available until the following Tuesday.

Ok, still it seems a little strange to me but I guess this is common practice then.

I dont deal with too many checks myself so I havent run into this before.

Thanks for the quick replies!

Originally posted by 12m8keall2c
Actually, that's pretty much standard policy with regards third-party checks ...

I concur 100% nothing out of the norm and all within legalities. The bank fears overdrafts all around.

If the bank did cash the check and it bounced the bank would be out the money, and would become bank-charge happy in charging on a dialy basis until the account is brought positive.

If you close the account while overdrafted, they will pursue the balance legally.

We all know they can afford million dollar laywers, while we pions can't - thus they win, we loose.

-E2

I don't think it's that uncommon.Happened to me a few years ago.The issue they had in my case was that the person who wrote me the check didn't have an account at the same bank I did.They were willing to give me cash for the amount of money I had in MY account, but the remainder would have to be deposited into my account.
It's frustrating, but as I said I think it's a pretty standard practice.....

One more thing though I just talked to my brother on the phone and he said it wasnt a personal check it was a check from the child support agency.

Wouldnt that be akin to the bank not cashing your paycheck if you didnt have the funds in your own account in case your employers check bounced?

reply to post by tnt3kgt


I don't know about how the banks work where you are from, but that is normal here. You can't just go cash a check, unless you have funds to cover it. If you don't you have to deposit it, wait for it to clear, then get your money. Or you can go to a check cashing place, they give you cash, minus a percentage fee. The only exception is if it a cashiers check from the same bank branch, then they will cash it right away for you.

doublepost
second line

Originally posted by tnt3kgt
One more thing though I just talked to my brother on the phone and he said it wasnt a personal check it was a check from the child support agency.

Wouldnt that be akin to the bank not cashing your paycheck if you didnt have the funds in your own account in case your employers check bounced?

Friend:

When you go to cash your paycheck, you go to the bank where your employer has his accounts. They will gladly cash it for you - against the employers account. You may have to show a check cashing card and photo id, but that is normal also. That's the proper proceedure. If you had gone to the bank where the child support agency banks (it says the bank's name right on the face of the check) you wouldn't have such a hard time.

You don't go to your bank (unless you bank at the same place as your employer) to cash the check.

If you do go to your bank the transactions become as follows:

1- withdrawl from your account for said amount of the check. (Like an ATM tranasction)
2- Deposit of paycheck into your account

Therefore you MUST have enough money in your account to cover the check while it clears as a deposit.

There is no Voodoo going on. Nothing illegal or abnormal about this. I deal with banks all day long. Yes they are all stupid, and some even dumber than a rock, but he process is still the same. The banks intelligence is irrelevant in the cashing of the check. (I still think a rock is smarter than any bank though.)

BTW - some commercial banks will shy away from cashing or even depositing 3rd party checks. There is too much exposure to the bank.

-E2

I know this has been the case with my bank for years. I wanted to mention that I believe banks want to eventually get rid of checks altogether. They are making it so we get available cash from our accounts at ATM's, they issue debit/credit cards to use for purchases. My pay is by direct deposit that is available the minute it hits my account. I use my bank debit card for all purchases. I can't even remember the last time I made out a check for anything, I pay all my bills online. A friend bought some exercise equipment from me and wanted to give me a check, I said I will wait if you just draw the funds from the ATM and pay in cash, which she did. You might keep this in mind if a friend or family member owes you money for anything - ATS's are everywhere and you won't have to worry about the waiting period for a check to clear or that you may not have enough in your account to get it cashed.

I say get another bank!!!

I live in Lubbock, TX and have been banking with a locally owned banks for the last 4 years and have NEVER (knock on wood) had that problem. Every payday I, always, deposit $100-$300 while getting the remainer in cash. They always honor the check even though I live check to check and never have enough in my account to cover this. And, it is anywhere between $250 - $400 in cash!!

Should my bank ever decide to do something like this - I would close our my account and start dealing with cash only!! I am really tired of banks, in general, but it is very easy to pay utility bills online through my bank - thus the reason for having an account.

Now, I believe, my mom's bank (BoA) is totally different and I really hate them!! But it would be such a chore for her to change banks due to direct deposit from SS and she has 3 major things withdrawn auto...each month. Changing all that is not something she wants to deal with.

I concur with the others. This has been standard procedure since at least 1979. (my second job was at a bank). I think back then, when the check was deposited, it was stamped "drawn against uncollected funds". They do this so that it doesn't inadvertently overdraw your account if it bounces.

Originally posted by Champagne
I say get another bank!!!

I live in Lubbock, TX and have been banking with a locally owned banks for the last 4 years and have NEVER (knock on wood) had that problem.

The small bank is running some risks in allowing you to do that. Most bigger banks won't allow it.

YES, there is a push to abandon paper checks. It is the primary source of bank fraud.

I have actually experienced situations where people in vans will wait outside a bank and ask people walking in if they could make a copy of their paycheck (inside their van) and the van people will give them $50 on the spot. Most people fall for it, and presto now the employer has tons of bank fraud going on because the van people were able to "lift" the signature and account info off the check and create new bogus checks that they will attempt to have cashed. This could even lead to ID theft.

Words of wisdom - be careful of ACH activity. While it's nice that your employer is able to electronically deposit your paycheck, it is just as easy for ANYONE to ACH your account to take monies out. Yes there is a paper trail, but by the time investigators get to figure it out, the account where the stolen money went to is cleaned out and closed. NEVER give out your banking information. ACH is truly dangerous.

One source of obtaining partial banking info is the back of endorsed checks. Now the crooks just need to figure out which bank you bank at (ABA number), and then ACH away.

-E2

I used to to work as both a teller and later a banker at several different larger financial institutions. While this is policy to a certain extent, usually if your account has been open long enough, and you don't have a history of overdrawing your account they will make exceptions. Especially if it's a check that he has gotten on a regular basis and has never been returned. Sometimes, to get approval they will try to verify funds, although this is not done much anymore due to privacy issues. The other thing is, if he has overdraft protection then it REALLY shouldn't be a problem. I no longer work in banking, and I've been out of the loop for a couple of years, but I honestly don't think it's changed much. And just an F.Y.I. nowadays, if you cash a check at a financial institution that you dont have an account with, they will charge you five dollars. (If you have more than one check, then they actually charge for each check cashed.) They do this to try and coerce you into opening an account. One of the many reasons I left banking... I couldn't stand watching these places milk money out of people any way they could.

reply to post by TKDRL


My bank cashes my paychecks and all other checks on the spot, and usually, I only have a few dollars left in the account when payday rolls around. A few times I've overdrafted and the account showed in the red until it was paid off. I've never been told I have to deposit my check and wait for it to clear and my checks are from a completely different bank. I've heard stories of what the OP has wrote but never has happened to me before. And my bank is Susquehanna.

reply to post by tnt3kgt


This happens to me all the time. I got so pissed off once because I was trying to cash a check from my Aunt and I needed the money that I very loudly blurted out what the the heck good is a bank if I can't cash a check made to me. I posted it on FB after I got home and a lot of people liked and agreed with me, lol.

It's gotten to the point that if I have a personal check I will go to their bank and ptietly tell them that I want cash nd no I don't want to sign up with their bank. Payroll cheks, if I can stand to lose $3 then I just go to Wal-mart. Or I wait like 3 to 4 days before I can do anything.(Yes, I live paycheck to paycheck.)

A payroll check they should cash no matter what.
But of course check with your bank.
Then there is a partial hold possible which I think happened
and you get some of the check in cash.
I've heard of a lot of financial dealings like having 15 dependents
so there is no withholding but did that person actually do what
he said. Some one like that might cash his payroll check and who knows
what he would do with it leaving nothing in the bank.
Banks seem to want some minimum deposit so how do you find
the right bank to operate like that.

This is easy to get around, deposit the check, but take nearly all of it as cash back on the spot. So fill out the deposit slip for 500 and take 475 cash back. This will resolve the problem.

The reason for this has NOTHING to due with bounced checks. They WANT bounced checks as it adds fees. The reason for this has to do with what the check represents and how it works. The signature on the checks creates money on the spot, they want that money and in order the create the money you have to leave the check for processing in the way mentioned above. If you cash the check, they can't create the money and use it as you took it with you. The process is complicated, suffice it to say, you were not taught this in school.

There is nothing odd here, only banks are now using YOU like an atm to print money, rather than the other way around. The abuse you receive now in the way of fines and fees and the rest is due to the FED loaning them money for free. They don't need the depositor anymore, the depositor is now fee generator first, nuisance second.

Why hassle with a bank at all. Yes, banks will give you ulcers, that's part of their job.
Instead, try dealing with cash and money orders. Keep a bank account with the minimum amount to keep it open. Do your business by spending the $3 - $6 bucks by cashing your check at Wal-Mart. (Cheaper than Bank Fees)

Separate your cash toward your bills in envelopes marked with the bill due. ex: Utilities, Food, Dr. Bills, etc. When the bill comes in buy a money order to pay the bill. Keep all monies in a home safe or a good hiding place. Just as safe as a bank.

Using this method, you will pay your bills, you don't have to worry anyone will be able to take your money without your permission, there's no ulcers or headaches dealing with bank officials. And best of all, you are proving to yourself that you and you alone are responsible for your money.

Just another idea to make life easier.

~holly