Banks' check-clearing policies could ...

Banks' check-clearing policies could leave you with overdrafts

There are 107 comments on the WZZM Grand Rapids story from Oct 25, 2007, titled Banks' check-clearing policies could leave you with overdrafts. In it, WZZM Grand Rapids reports that:

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 ...

Join the discussion below, or Read more at WZZM Grand Rapids.

time

Lovington, NM

#43 Dec 9, 2007
neecer wrote:
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.
I have asked but I guess the wrong people. It actually took three different people and a phone call to the main branch but, it worked. Hopefully from now on. I also used the fact that I know some ones credit union that will but I really don't.
White lie yours does you said so, I went with the thought that mine is one way or another.

EJD

Rochester, NY

#44 Dec 14, 2007
Banks clear checks between themselves immediately but hold my deposited check to the next day even if it is their check..... how is this fair or right?

“Lost my mind”

Since: Apr 07

be back later

#45 Dec 14, 2007
time wrote:
<quoted text>
I have asked but I guess the wrong people. It actually took three different people and a phone call to the main branch but, it worked. Hopefully from now on. I also used the fact that I know some ones credit union that will but I really don't.
White lie yours does you said so, I went with the thought that mine is one way or another.
time.. if you feel comfortable enough to email me... I'll tell you who my CU is. [email protected] put someting in the title so I know it's you and it will keep me from that instant delete!:)
Paid By Seller

Grafton, WI

#46 Dec 14, 2007
Try a Credit Union, you will be very happy you did! They are open to anyone and they treat you like a person. It's very nice :-)
Mike T

Garden Grove, CA

#47 Jan 24, 2008
Got laid-off from work. Said my severance check would be sent after the 45-day 'waiting period'(to change my mind).
Got the check within 5 days of the waiting periods' expiration - on a Friday after business hours. So i deposited it in the ATM machine on-premises, figuring they'd begin to process it on Saturday (when they're open).
Wells Fargo put a hold on the check for almost a week...AND say only HALF of it will be available. The rest won't be available for ANOTHER week (meaning they'll have access to the funds for TWO weeks).
Thing is - i noticed that the final severance check is ALSO from Wells Fargo.
i'm leaving them as soon as i get my money.
Michael Hunt

AOL

#48 Jan 25, 2008
Have you ever heard of: bank to bank wire transfer, for large payments? How about "direct deposit" for payroll payments? How hard is that?

“Lost my mind”

Since: Apr 07

be back later

#49 Jan 25, 2008
Not all banks are willing to do that. There are some who don't like to cooperate with different banks at all (5th 3rd comes to mind).

And now all employers offer direct deposit. We have been trying to convince my husband's boss to do that for 2 years now.
James

United States

#50 Jan 25, 2008
It has become increasingly difficult to verify funds over the telephone with any bank, reason being security issues, most will just tell you now to deposit the check.
If you ever have to write a check and you know that you are short and trying to float money till payday arrives. Make a mark in the routing numbers on the bottom, so the scanner can't read it now the check has to be hand processed.

Since: Oct 07

Big Rapids, MI

#51 Jan 27, 2008
making a mark in the routing numbers will only reject that check for about an hour or less until they are processing the check after it has been run, it will be in the rejects and they will look at the image or pull that check, its not going to save you for more than half a day at the most.

“Taz say Hi”

Since: Jan 08

Holland,MI

#52 Jan 27, 2008
CrimStudent wrote:
cash only? how are you going to get cash? i doubt your place of employment will pay you in cash and if you want to cash a check on a bank you dont have accounts with..let me know when you get sick of those $8-10 fees every week
The last time I checked, if you go to the bank that issued the check, they will usually cash it with no fee.

“Taz say Hi”

Since: Jan 08

Holland,MI

#53 Jan 27, 2008
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.
Some years ago I read an article that warned people not to make deposits in ATMs because you have NO proof that the money was there. They can claim that the envelope was empty and you have no recourse.
James

United States

#54 Jan 27, 2008
Gentle Taz wrote:
<quoted text>
The last time I checked, if you go to the bank that issued the check, they will usually cash it with no fee.
When was the last time you tried this?
If you are not a customer, they will acess a fee to cash even there own check.
I don't like it and consider it extortion.
I have wrote letters to the banking and insurance commision in Michigan but those letters fallen on deaf ears.
Maybe if more people started to write about this they might pay attention.

“Lost my mind”

Since: Apr 07

be back later

#55 Jan 28, 2008
Gentle Taz wrote:
<quoted text>
The last time I checked, if you go to the bank that issued the check, they will usually cash it with no fee.
Good morning Taz,

It use to be that way, but not anymore. If you don't have an account there, they charge you. For some it'ss only $5.00 a check, and others it's $10.00 (5/3 was $10.00 last time I tried it and I laughed in their face).

Since: Oct 07

Big Rapids, MI

#56 Jan 28, 2008
Most banks still cash "on us" checks without a fee, because they can easily pull up that account and make sure the funds are availible, but at least my bank you have to have Two forms of ID, and place your thumbprint on the front of the check, but no fee, and now we dont even cash a non customers check if it isnt drawn off our bank, too many scams out there.

“Taz say Hi”

Since: Jan 08

Holland,MI

#57 Jan 28, 2008
That was years ago, James. That's why I said "last I remember". I should have known that would change. That bank was sold to another which was sold to another, and maybe another sale again after. I stopped dealing with the first one they were sold to when that bank wanted me to pay for my checking. I agree with you. It does amount to extortion. Banks are good at setting there customers up for more and more fees. "Use the ATMs. It'll save us money and then we'll be able to serve you better." Then they charge for ATM transactions because they cost them money. It's proably just a matter of time before they start charging for on line transactions (if they don't already).

“Taz say Hi”

Since: Jan 08

Holland,MI

#58 Jan 28, 2008
I have left more than one bank for playing their games. One that I dealt with for a number of years didn't bother to tell me until I was 55 that they had free checking at age 50. I told them to give me my money, and my account was gone. Again, a case where the bank was sold and resold to others.
Mudman

Ypsilanti, MI

#59 Jan 28, 2008
BR Bean Counter wrote:
<quoted text>
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.
You hit the nail on the head. This is what they do, make money. It is their ball field, and their rules.
What people need to remember is you don't need a "ball field" to play ball.
James

United States

#60 Jan 28, 2008
Gentle Taz wrote:
That was years ago, James. That's why I said "last I remember". I should have known that would change. That bank was sold to another which was sold to another, and maybe another sale again after. I stopped dealing with the first one they were sold to when that bank wanted me to pay for my checking. I agree with you. It does amount to extortion. Banks are good at setting there customers up for more and more fees. "Use the ATMs. It'll save us money and then we'll be able to serve you better." Then they charge for ATM transactions because they cost them money. It's proably just a matter of time before they start charging for on line transactions (if they don't already).
Tiz, why I asked when was the last time you tried. doing this.LOL.
Yes, it is extortion and they should be prosecuted for this. Believe me, I have tried, have made a blooming pest out of myself at the prosecutors office.
The reason they won't prosecute is because you can deposit the check in your own checking account and avoid any fee's.
Personally, I think its a prime example of how they do not want us to have cash in any form.
5/3 Bank, Chase & National City locally all have this policy. It's funny how policy becomes law depending upon who you are.
James

United States

#61 Jan 28, 2008
CrimStudent wrote:
Most banks still cash "on us" checks without a fee, because they can easily pull up that account and make sure the funds are availible, but at least my bank you have to have Two forms of ID, and place your thumbprint on the front of the check, but no fee, and now we dont even cash a non customers check if it isnt drawn off our bank, too many scams out there.
Yes I agree, there are way to many scams out there.
The biggest being "The Federal Reserve Bank"

“Dude, Where's my car?”

Since: Jan 08

Location hidden

#62 Jan 28, 2008
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!
:)
I had the exact same experience with 5/3 bank and their insane check clearing policies.(What's with the name anyway??? Should it be 1.666666667 Bank? LOL). Needless to say my money is no longer at 1.666666667 Bank.

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