Banks' check-clearing policies could leave you with overdrafts

As we write checks and use our debit cards this holiday season, banks are forcing some of us to overdraw more often by clearing the largest transactions first, instead of processing them in the order they come ... Full Story

Since: Sep 07

Location hidden

#21 Nov 7, 2007
Crim, Iím not trying to downplay your role in the banking industry, please donít get me wrong. But I see, on a daily basis, evidence of people who try so hard every day to make ends meet, and their banks and/or credit unions turn their backs on them. I can remember when financial institutions actually HELPED people, instead of punishing them. Now, their popularity is second only to lawyers and utility companies. They are not liked at ALL, and even more so because they are such a necessary evil. I encourage people to keep the bare minimum in their checking and/or savings account, and simply use their banks as check cashing services.

Iím just pointing out that most financial institutions have become too *big business*, and itís upsetting a lot of good people. Itís nearly impossible to find one that will deal with the common man anymore. Too sad.
WeAreInThisToget her

Carrollton, TX

#22 Nov 7, 2007
Lucy in Rockford wrote:
Crim, Iím not trying to downplay your role in the banking industry, please donít get me wrong. But I see, on a daily basis, evidence of people who try so hard every day to make ends meet, and their banks and/or credit unions turn their backs on them. I can remember when financial institutions actually HELPED people, instead of punishing them. Now, their popularity is second only to lawyers and utility companies. They are not liked at ALL, and even more so because they are such a necessary evil. I encourage people to keep the bare minimum in their checking and/or savings account, and simply use their banks as check cashing services.
Iím just pointing out that most financial institutions have become too *big business*, and itís upsetting a lot of good people. Itís nearly impossible to find one that will deal with the common man anymore. Too sad.
Most of today's work force are not famaliar with the little known phenomenon "humans making decisions". If the information on the display screen says that your account contains a zero balance then for them, that's gospel, done, case closed. There is no after thought that the information could actually be wrong. And that is really scary! I once asked to speak to a supervisor during a phone conversation about a discrepancy in my account and was told by the CSR that the supervisor would "tell me the same thing"! I was absolutely incredulous!

Johnny can read but he lacks comprehension!!

Crim, I'm sure you're a dedicated employee but your range of knowledge seems limited to the level of office administration; otherwise, given the current climate in housing and health insurance, you would understand why the personal mortgage and personal insurance departments at your place of employment are booming.

Since: Oct 07

Big Rapids, MI

#23 Nov 7, 2007
Lucy in Rockford wrote:
So, basically - vendors can take OUR money instantly, but money DUE to us has to go through a check clearing process.
What b.u.l.l. Banks AND credit unions are becoming nothing more than a pain in the rear. Get enough people going on cash-only basis, and these banks and CUs will start offering REAL service again.
Hey Lucy, they all do it. My former bank, in BR, actually held a bank cashier check (it was fairly large)from my account for 7 days. I hope they liked the interest they earned on it, because I called it severance pay, when I left them.
half days

United States

#24 Nov 7, 2007
Banks and their employees really do have zero imagination or the ability to think outside of extremely narrow parameters. Case in point: I had, not so many years ago, an account at a local branch of a national bank. I had done regular business with this bank for greater than a decade. They sent me a new debit card for one of my accounts. I attempted to change the PIN # to my liking by phone, then internet, then CSR in the branch, then the branch manager. Finally the manager told me that they could not change the PIN because they did not own the card. When I called to his attention that his company name was on the card, he then told me that he had no means to contact the people who issue and/or control the card. When I asked how his bank was able to direct these people to send a debit card to me without contacting them he said "It can't be done. Just deal with it."
I did deal with it, within a week my money was no longer with Chase.
What a bunch of maroons.
time

Knoxville, TN

#25 Nov 8, 2007
I have been with the same CU for over 22 years. When I was working and keeping thousands there every thing was fine. Now that I have one check per month they hold it and have been cashing the same check for two years now with no problem. There answer, it's there policy.
I am looking for another CU but they all seem the same, so any one who tries to say it's not for the interest when they hold it is full of S H I T.
As far as bouncing checks I still haven't and that is more than likely there goal.

“Lost my mind”

Since: Apr 07

be back later

#26 Nov 8, 2007
time,

Have you asked them to call the issuing bank to make sure the funds are good and clear it? I know my CU will do that for me. I have never had any issues with my CU in that respect.
Walt

Holland, MI

#27 Nov 8, 2007
5/3 is the worst.
Move to a local bank, better service.
common Sense

Madison, AL

#28 Nov 8, 2007
Hello All!.........
To stay away from all above problems, please do follow:
////Best option: Get your employers do Direct Deposit.
*****No hold time; fund availability is immediately. No waste time go to the bank. Spending that one hour with your girl friend, wife, kids, Best Buy, Walmart, or your dogs will generate more benefit out come.

////Second Best: "if your employers don't offer Direct Deposit", then bank with the bank your employers bank with so the paycheck won't be hold.

////Third Best: Get a line of credit and do Overdraft Protection (OD). But don't be stupid to use your credit card for OD because you will end up more expensive than let the bank charge you due to: all of this type transactions will be counted as Cash Advance; therefore, your C.C. issuers will charge you a 3% cash advance fee and hit you with more than 20% interest charge immediately.

////Fourth Best and the Best of the Best is DO NOT USE WHAT YOU DO NOT HAVE. STOP GO TO MOVIE, BUY NEW TV, NEW CLOTH, SPOIL YOUR GIRL FRIEND IF YOU DON'T HAVE THE CASH.

AND REMEMBER DON'T BLAME THE BANK OR THE PAY DAY CASH ADVANCE COMPANY. THEY'RE IN BUSINESS TO GENERATE PROFIT, THEY'RE NOT IN BUSINESS TO DO CHARITY WORK.
THIS IS A COUNTRY WHICH IS DRIVEN BY CAPITALISM.

TAKE CARE ALL
Anna

Winchester, VA

#29 Nov 13, 2007
I stopped using BOA for this very reason.. They hold onto the money and you get hit with overdrafts.. We had this continuously as they hold it long enough for your account to get low and then hit you... The government does nothing about this so it doesn't protect the consumer at all.

I am with USAA and have never been happier.. you can make payments online and submit your pay and they will automatically add it to your account if you have a scanner..

“Dont Worry :o)”

Since: Nov 07

New Fairfield

#30 Nov 24, 2007
neecer wrote:
<quoted text>
I'm not sure where you bank.. but for large checks, if I ask, my credit union will actually call the issuing institution to make sure the funds are in the account and clear it immediately. Check with your bank/credit union and see if they are willing to do this for you. I know 5/3 won't, I asked when we banked with them. Not only that, but they also made us wait 10 BUSINESS days for a large check to clear! No, we are longer with them!
:)
No no...that is actually against most or even all bank rules and federal regulations. You HAVE to let the check go through the correct Automatic Clearing House process. It should not take a bank more than 2 business to make your funds 'available' but it can take as long as one month to actually have the check clear the clearing house.
hothead redhead

United States

#31 Nov 24, 2007
Remember folks that the Banks, and other Banking type institutions, are in it to make money. Anyway they can. They have no concerns about you or your situations or hardships. Unfortunately most people have to deal with banks, or the equivalent.

I have a very firm hate towards banks and the way that they are permitted to operate. So having said that, I can only offer that each individual needs to do whatever they can to educate themselves on who they are dealing with. Because in most disagreements or arguements with the banks, the banks will be the winner.
PadPal

Everett, WA

#32 Nov 26, 2007
Want to comment on CrimStudent who has worked at a Bank.
(Coming from a person who acctually works at a bank. Dont spend money you dont have, the days of writing a check one day and having one or two days to deposit the money into your account are over. With places doing tele check everything is almost instant. Some place now have remote capture (where they acctually process the check right there instead of having to bring it to a bank. And about all these non sufficent fund fees, I really dont know how you can overdraw your account so many times and not know it. in the days of ATM's and Internet Banking, keep track of your money people. its really not hard )

I do the ATM banking and on a Friday at nine in the evening I put my state check in the banks ATM. Now on Monday around three in the afternoon I went in the online banking and paid my house bills. Lord and be- hold A few days later I go into the online banking to see what my balance is so I can shop on black Friday. It shows I have four bounced checks. I got off and called my bank and they pass me around and I get this lady who tells me that I have had this happen in the past so her and one more looked at my account and decided to bounce all four knowing my money was in the bank that morning. She went on to say at this charge of thirty-five dollars for each check that it was posted at the ATM and in the bank that it takes a day to clear a check that is deposited. This is the reason she used to bounce my checks.So Friday to Monday was not long enough. Said if I would have bought the twenty seven dollar check bouncing insurance I would not have gotten charged the thirty five dollar fee for each. If I would have waited and paid on Tuesday they would have not bounced. It seems to happen now that I have my savings and the checking on the online so the banks look at that and say no problem we can get some extra money out of this customer we service. You have to know they could see the money was in the account but used the bogus twenty four hours to make some money off of me and I am sure they do this to whom ever they can. You do know working for a Bank that that makes the Bank lots of money. Bounced and paid in the same time,I don't think their was a minute between. I have proof of my deposit at the ATM but that meant nothing.

Since: Oct 07

Big Rapids, MI

#33 Nov 26, 2007
Of course we make money on bounced checks and NFS fees. I acctually checked into our clearing process recently and found out that we process all deposits first so that cuts down on it. So maybe people should look into that at their bank

“Don't touch my junk man!”

Since: Nov 07

Middle of the Mitten, Michigan

#34 Nov 26, 2007
PadPal wrote:
Want to comment on CrimStudent who has worked at a Bank.
(Coming from a person who acctually works at a bank. Dont spend money you dont have, the days of writing a check one day and having one or two days to deposit the money into your account are over. With places doing tele check everything is almost instant. Some place now have remote capture (where they acctually process the check right there instead of having to bring it to a bank. And about all these non sufficent fund fees, I really dont know how you can overdraw your account so many times and not know it. in the days of ATM's and Internet Banking, keep track of your money people. its really not hard )
I do the ATM banking and on a Friday at nine in the evening I put my state check in the banks ATM. Now on Monday around three in the afternoon I went in the online banking and paid my house bills. Lord and be- hold A few days later I go into the online banking to see what my balance is so I can shop on black Friday. It shows I have four bounced checks. I got off and called my bank and they pass me around and I get this lady who tells me that I have had this happen in the past so her and one more looked at my account and decided to bounce all four knowing my money was in the bank that morning. She went on to say at this charge of thirty-five dollars for each check that it was posted at the ATM and in the bank that it takes a day to clear a check that is deposited. This is the reason she used to bounce my checks.So Friday to Monday was not long enough. Said if I would have bought the twenty seven dollar check bouncing insurance I would not have gotten charged the thirty five dollar fee for each. If I would have waited and paid on Tuesday they would have not bounced. It seems to happen now that I have my savings and the checking on the online so the banks look at that and say no problem we can get some extra money out of this customer we service. You have to know they could see the money was in the account but used the bogus twenty four hours to make some money off of me and I am sure they do this to whom ever they can. You do know working for a Bank that that makes the Bank lots of money. Bounced and paid in the same time,I don't think their was a minute between. I have proof of my deposit at the ATM but that meant nothing.
I had the same thing happen to me last week through Chemical Bank. I'm sure you're not talking about the same institution, but upon bringing it to their attention they tracked down my deposits, and entered them into the system. The only hiccup was the lack of a deposit generated an overdraft fee. I also brought that to their attention, and it was fixed.

My boss always tells me the squeaky wheel gets the grease. Calling once and listening to their song and dance just doesn't cut it. If you have proof that their error is what caused you to be overdrawn, show it to them. And don't take no for an answer.

As a matter of fact I just checked my online banking system and where they refunded the overdraft fee is listed as "bank error." Gotta love that customer service!
Lightout

Hudsonville, MI

#36 Nov 26, 2007
Topix broke my link up as it appeared to them as personal info. Just collapse the spaces.

“Lost my mind”

Since: Apr 07

be back later

#38 Dec 3, 2007
ITS ALL A GAME wrote:
<quoted text>
No no...that is actually against most or even all bank rules and federal regulations. You HAVE to let the check go through the correct Automatic Clearing House process. It should not take a bank more than 2 business to make your funds 'available' but it can take as long as one month to actually have the check clear the clearing house.
I find that interesting you say this. I had one check my CU wasn't familiar with. It was too late that day to call, but the branch manager called the next day and then called ME to let me know they had cleared it. Any time I have had a check over a certain amount (large amount) they have called and cleared the check, whether it is a business or personal account.

Now, if it only takes 2 days to clear as you have stated, could you please tell me why the h.ell 5/3 will hold it for TEN BUSINESS DAYS (2 full weeks depending on the day you deposit) to clear a check? Oh, and this was checks as low as $500 and even FROM THEIR OWN ACCOUNTS!

Hence the reason I am no longer with 5/3, nor will I bank with them again.
lost in space

Rensselaerville, NY

#39 Dec 4, 2007
This is something new???? I tried to bring it to attention years ago!!! I mean years ago!!!! effing banks anyways!!!!
maria Cruz

Bronx, NY

#40 Dec 7, 2007
Banks are all crooks they have your money and make money out of your money and then they want to pull a credit check to lend you money that is already yours to begin with ...

Big Deal this is not good
Lisa in Walker

Amelia Court House, VA

#41 Dec 7, 2007
There is one simple way to prevent overdrafts.

Don't spend more than you have.

It only takes 5 minutes to sit down and subtract your checks/debits every night after you go shopping.

Better yet, use cash.

As for paychecks taking a long time to be credited to your checking account, get direct deposit. Most banks offer free checking with direct deposit. The cash is available on the very day you get paid.
Fed up

United States

#42 Dec 7, 2007
I second the persons comment on Fifth Third. They are horrible to deal with. Their customer service is horrible and it takes 6 people to get an account problem resolved. Better off putting your money in a mattress.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Grand Rapids Discussions

Title Updated Last By Comments
welcome to the new black america 7 hr From The Chief 4
pope-a-dope 9 hr bobolinq 1
College football roundup: Ohio State starts the... (Sep '13) 12 hr Go Blue Forever 1,492
Mana s arrest is linked to deadly barbershop sh... 12 hr Go Blue Forever 1
Putting Christ back in Christmas 13 hr bobolinq 1
Lets Chat (Mar '08) Wed Trouser Cough 40,169
Al Sharpton's Marchers in New York City Chant "... Tue Gville Jim 5
Grand Rapids Dating
Find my Match
More from around the web

Grand Rapids People Search

Addresses and phone numbers for FREE

Grand Rapids News, Events & Info

Click for news, events and info in Grand Rapids

Personal Finance

Mortgages [ See current mortgage rates ]

NFL Latest News

Updated 8:09 am PST

Bleacher Report 8:09AM
Breaking Down Bears' Game Plan vs. Vikings
NBC Sports 9:15 AM
Lance Briggs "happy" with Robbie Gould's comments
Bleacher Report11:45 AM
Complete Week 17 Preview for Vikings vs. Bears
Bleacher Report12:26 PM
Joique Bell Dealing with Achilles Injury
NBC Sports 1:25 PM
Achilles injury doesn't keep Joique Bell from practicing