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.

Since: Oct 07

Big Rapids, MI

#84 Jan 28, 2008
James wrote:
<quoted text>
Really where did you read this? please point me in the direction of the source.
A transfer is not the same as a withdrawel.
They could care less what you transfer around as long as the cash stays in the system.
The Fed doesn't want you to have cash period and it will be a grim day when they get there way.
Read this? i work for a bank and i know our policy, and thats what it is, its a regulation placed on us that you cannot make more than 6 transactions out of your savings account in a month. And yes a transfer out of your savings account into your checking account is a withdrawl..sweet letter to the bank manager too.i didnt bother reading it and wasting my life much like you did writing it or copying it from another website.
James

United States

#85 Jan 28, 2008
CrimStudent wrote:
<quoted text>
Read this? i work for a bank and i know our policy, and thats what it is, its a regulation placed on us that you cannot make more than 6 transactions out of your savings account in a month. And yes a transfer out of your savings account into your checking account is a withdrawl..sweet letter to the bank manager too.i didnt bother reading it and wasting my life much like you did writing it or copying it from another website.
Policy is not law or a legal regulation.
I would like to be pointed in the right direction.
I could care less what some suit who you work for says policy is, this matters little.
Question, how can you say its a sweet letter but you didn't bother reading it?
Than make accusations, like you are the voice of authority.
Do you approve mortgages? it's no small wonder why the banking industry is circling the drain and about to get flushed with employees like you.

“Dude, Where's my car?”

Since: Jan 08

Location hidden

#86 Jan 28, 2008
I'm still wondering how "Home-Land Security" impacts my Savings account? But apparently it doesn't affect my checking account? I guess I just don't get it.

Since: Oct 07

Big Rapids, MI

#87 Jan 28, 2008
James wrote:
<quoted text>
Policy is not law or a legal regulation.
I would like to be pointed in the right direction.
I could care less what some suit who you work for says policy is, this matters little.
Question, how can you say its a sweet letter but you didn't bother reading it?
Than make accusations, like you are the voice of authority.
Do you approve mortgages? it's no small wonder why the banking industry is circling the drain and about to get flushed with employees like you.
And you do what for a living that is so much more respectable than banker?
type this into a search engine and you will find not only our policy but the FEDERAL REGULATION
"Federal regulations limiting savings account withdrawals"

Since: Oct 07

Big Rapids, MI

#88 Jan 28, 2008
Hurley35 wrote:
I'm still wondering how "Home-Land Security" impacts my Savings account? But apparently it doesn't affect my checking account? I guess I just don't get it.
No your checking account isnt affected
Dwin Dykema

United States

#89 Jan 28, 2008
CrimStudent wrote:
<quoted text>
haha wow i love it...that just becasue i work in a respectable field i have no imagination, awesome. If you hate banks so much you should close out all accounts. by keeping some money in you are still feeding the machine so to speak correct? a cash only economy will never happen, cash is becoming a thing of the past anyway. I know i hardly keep any on me with direct deposit and debit cards who needs it?
Not all would consider banking respectable these days. You are correct about a cash only economy never happening. In fact what DO you imagine will happen when the dollar crashes?? Corporate America does treat the people as stupid. While we may be being kept busy, perhaps not quite busy enough. Here is an interesting watch for the people:
James

United States

#90 Jan 28, 2008
CrimStudent wrote:
<quoted text>
And you do what for a living that is so much more respectable than banker?
type this into a search engine and you will find not only our policy but the FEDERAL REGULATION
"Federal regulations limiting savings account withdrawals"
I am a retired senior citizen.

I love reading and always check out stories when they make no logical sense. Now your story makes even less logical sense. Your banks policy of charging for 6 withdrawals per month from a tellers window or ATM from their savings account is a rip off.
This regulation pertains only to electronic mediums, phone, Pc's & pre-authorized.
I can make as many withdrawals from my savings acct as I want, up close and in person or from ATM's.

Also, I see no mention of a monetary penalty for violating this regulation.

Limitations on Frequency of Transfers

For security reasons, and to enforce federal regulations, there are certain limits on the number of transfers you may make using your Access Device.

1) Each of your savings accounts is limited, by federal regulation, to six (6) telephonic, computer, and/or preauthorized transfers per statement cycle.

Within any monthly statement cycle you may make up to six (6) withdrawals or transfers including, but not limited to, telephonic, computer and/or preauthorized transfers from each of your savings accounts.

These withdrawals or transfers do not include in-person withdrawals or withdrawals at ATMs.

If any telephonic, computer and/or preauthorized transfer from your savings account exceeds the limit of six (6) per monthly statement cycle, we reserve the right to limit your withdrawal privileges, revoke your Card and terminate your transfer privileges, or close your account.

Thanks for the info as I did learn from but if I need to do banking I keep it up close and personal.
Really I do appreciate it.

“Time for work”

Since: Sep 07

Location hidden

#91 Jan 28, 2008
James:
Keep in mind that bankers, as a rule, do not know how to think for themselves. We have all noticed that when one bank decides on a new policy, they publicize it, then suddenly most other banks in the area decide to implement the same policy whether that policy makes any sense or not.
Secondly, I am sure that CrimStudent is nothing more than a lackey for his employer, given that I have not found any bank employee that works on the retail level that is allowed to use any discretion whatsoever regarding their job. You will note that CrimStudent has repeatedly indicated what is his bank's policy or rules and that he simply follows them like a lemming.
As to my knowledge of the industry, I have a number of contacts and relatives that are or have been in banking, both retail and corporate. I also have had business dealings directly with Comerica, Michigan National (now LaSalle), Old Kent (now 1.66666667), Chase, Bank One, First Chicago, NBD (all Chase now), Huntington and First of America.
James

United States

#92 Jan 28, 2008
Half Days wrote:
James:
Keep in mind that bankers, as a rule, do not know how to think for themselves. We have all noticed that when one bank decides on a new policy, they publicize it, then suddenly most other banks in the area decide to implement the same policy whether that policy makes any sense or not.
Secondly, I am sure that CrimStudent is nothing more than a lackey for his employer, given that I have not found any bank employee that works on the retail level that is allowed to use any discretion whatsoever regarding their job. You will note that CrimStudent has repeatedly indicated what is his bank's policy or rules and that he simply follows them like a lemming.
As to my knowledge of the industry, I have a number of contacts and relatives that are or have been in banking, both retail and corporate. I also have had business dealings directly with Comerica, Michigan National (now LaSalle), Old Kent (now 1.66666667), Chase, Bank One, First Chicago, NBD (all Chase now), Huntington and First of America.
Half Days,

Personally, I am elated that CrimStudent pointed me in the right direction for me to verify regs and to see what he was being adamant about. The Manager, where I bank has been trying for years to get me to use electronic services, she tells me it would be easier for me to conduct business, as most of my business dealings (personal) are transferring funds from savings into checking or vice e versa and making deposits.
Needless to say, I know a branch Manager who will be very surprised when I show up next time and ask her about this.
This is why I never listen to policy, policy changes like the weather. Laws are a different matter.

“Dude, Where's my car?”

Since: Jan 08

Location hidden

#93 Jan 29, 2008
James wrote:
<quoted text>
Half Days,
Personally, I am elated that CrimStudent pointed me in the right direction for me to verify regs and to see what he was being adamant about. The Manager, where I bank has been trying for years to get me to use electronic services, she tells me it would be easier for me to conduct business, as most of my business dealings (personal) are transferring funds from savings into checking or vice e versa and making deposits.
Needless to say, I know a branch Manager who will be very surprised when I show up next time and ask her about this.
This is why I never listen to policy, policy changes like the weather. Laws are a different matter.
Thanks for all the info on this silly charge, to you James and others who answered as well. As I said, I'm no banking expert but this charge I received really ticked me off. Now I know the laws vs. the policy. I know it was only 10 bucks but have a difficult time giving any of my money to a bank. I'm supposed to get money from them for saving. As I've said, I now use a Credit Union with an interest bearing checking account and I'm free to transfer to and from that account as I please and I get better interest rates too!

Since: Oct 07

Big Rapids, MI

#94 Jan 29, 2008
i understand hurley..im upset when i get charged for somethign as stupid as transfering my money too cause its happened to me..but according to half days im just a lackley employee...its a dark cold world outside those florecent lights that comfort me with policy and regulations. not that any other place of business has policies or regulations..i guess banks are the only place.
Ryan

Austin, TX

#95 Aug 11, 2008
Why not get direct deposit?
Punkey Brewster wrote:
I get paid once a month . When I put my check into my account it takes five days to clear because it is over 5 grand . They say it is because of this Home Land Security and Check fraud .
I miss the days of just getting it cashed . I now budget very well though .
Ryan

Austin, TX

#96 Aug 11, 2008
US PATRIOT ACT only requires banks to get SS#, 1 form of Gov't issued ID with a physical address, has nothing to do with the limitations on your account.

The reason for the restrictions banks put on your savings account is that they will be using your money to make loans to other people. They make money by charging interest on those loans, and they pass some of that money back to you through interest payments. Because banks need to be sure there will be money to loan, they count on savings accounts to be more steady than checking accounts, which institutions pay much less, if any, interest on and often charge fees for.
Hurley35 wrote:
I'm still wondering how "Home-Land Security" impacts my Savings account? But apparently it doesn't affect my checking account? I guess I just don't get it.
tycoon1st

Coleman, MI

#97 Aug 12, 2008
I, too, had a problem with 5th/3rd. My paycheck was deposited on a saturday, with the understanding that it won't "be available" for 24hours. Monday afternoon, my girlfriend and I went out to dinner - which somehow overdrafted my account. When I contacted the bank, their excuse was that I can't use my money for 24hours from when THEY get it, NOT when I deposit it. Apparently, if I ever want to spend my money, I need to ask the bank's permission first!
Could anyone recommend a good credit union in Holland,MI?
seniorauthor

Houston, TX

#98 Aug 13, 2008
It is absolutely critical that all of you keep doing what yu are doing and that is questioning the process which the banks are practicing together with what happens when you give a check to a bank for an installment loan, credit card, whatever. In one of our investigations today we found that when payments are phoned in that these company you are paying DO NOT WRITE UP A SOURCE DOCUMENT but input it into the computer as you dictate your payment information. That being said, if they type in $940.00 as opposed to the $94.00 you were attempting to pay, they will not reconcile their posting information at the end of the day. In the case we are looking at, the bank sent the electronic payment through twice for $940.00 rather than $94.00 which of course created havoc with the checking account. In this case the check did not clear, but it took up four days in order for the account to reflect the correct balance before the consumer could use his bank account. It is my understanding that the company taking the order to debit your account over the phone does not write up a separate source document and therefore they do not reconcile everything that is posted. Had this consumer had a lot of money in his account, he never would have known about the overdraft as quickly as he did. But since he purchases, gas, his medication, his groceries, etc out of his social security, the balance of this $846.00 was tied up for days and he had to go without. In checking on this case, that bank tells me that the auditors have approved this system and my comment to him was, The regulatory are responsible for allowing such audits to be approved. There were many corporate auditors in our history that have been written up for such activity in that the consumer is not protected. If they have a call in service which does help both the company and the consumer, they they have to have the right controls in place so that these kinds of errors are caught at the end of the day. Electronic checks create a situation that cannot be corrected immediately if the consumers account is posted for the wrong amount. The company should not be typing in a payment on someones account if it cannot be assured they are posting the correct amount. The bank could not have been uglier to the consumer when he tried to get the error corrected, but they did reimburse him for the $65.00 return check items.
BIGJ_98

United States

#99 Aug 22, 2008
It's not just the check clearing policy that will get you into trouble, it the transfers.

They have an "Immediate" transfer from one BOA account to another, yet the funds sit in "pending" for a day and are unavailable in either account. These is a miss-reprentation that cost me some money. They also have "Daily Limits" on outside-the-back transfers that are really 2-5 day limits. For instance. To transfer from outside the back to a BOA account they have a "One Business Day Transfer" with a daily limit of $2,000. However, you must wait for the previous transfer to clear (2 business days) before attempting a second transfer.
Mohammed

Trinidad and Tobago

#100 Aug 22, 2008
Post To The Forum
I have clients that is interested in takes overs need Bgs or credit.
Regards
Mohammed
Majwoody

Freeport, FL

#101 Oct 6, 2008
All I know is that Suntrust has been a total rip off when it comes to fees. My wife lost her job and we told them to stop auto payments by certified mail. They kept on making charges and ran up fees over $300. Now you can't get anyone with any authority to do anything to respond. I don't mind pay a legit charge, but they charges on charges.
Cap1SUX

Bronx, NY

#103 Dec 12, 2013
They suck we put large checks in (40K+) from same client and they hold most of the funds for up to 14 days. We then write checks against funds and the bang us for $35 on every check.
I asked our bank manager if she could refund this money and was told she'll refund 2 of them but not the other 10?
We are working for a local Billionaire who is well known in the community but she didn't know him as she's not local.
We bank all over the world I can call my Swiss Bank and get anything I want over the phone done.
We are now moving to a local bank who say this is a very common complaint about Capital One.
They are the worst bank we have ever dealt with period.
eman

Allendale, MI

#104 Dec 12, 2013
http://www.fdic.gov/regulations/laws/rules/65...

Some financial institutions continue to evade federal law... until they are called on it. As an example: A few years ago, my daughter deposited her payroll check. Two business days later, she made a withdrawl. Of course her deposit slip deposit showed the date and time of the transaction, however, the bank (two days later) accepted the withdrawl before the deposit which put her account into overdraft status. Calls to the bank explaining the issue were dismissed and at one point, a bank employee actually said "tha is how we make our money". A very bold... but at least honest statement. I copied my daughter's bank statement showing dates and sent this, along with the FDIC UCC (Uniform Commercial Code) "Availabilty of Funds" section to the Michigan Attorney General's office. Within 2 weeks, my daughter received a phone call from the bank manager, apologizing for any 'misunderstanding" and all overdraft charges were removed. There after, this bank has never played the priority acceptance of withdrawls over deposits according to FDIC UCC.

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