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Banks have lost there minds

Discussion in 'Off Topic Threads' started by halfmile, Apr 20, 2009.

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  1. halfmile

    halfmile Well-Known Member

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    Green Bay Wisconsin
    I just cashed one from W. VA for $700, they made a phone call and that was it.

    They spent more time identifying me than verifying the check. I guess It depends on your bank.

    HM
     
  2. J.Woolsey

    J.Woolsey Member

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    Stop and think about it fellows. Since Obama has gotten into the banking industry, it pays to be cautious. JW
     
  3. Lead Man

    Lead Man TS Member

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    One of the biggest scams out there is fake certified or cashier's checks. Anyone with a computer and little knowledge can be a counterfeiter in today's world. I send nothing until I hear from my bank. Even postal money orders are not as safe as they used to be.
     
  4. pendennis

    pendennis Well-Known Member

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    Several years back, Federal law was changed that stated that banks could hold funds on checks for up to five days. Prior to that, banks had the option to hold funds for as long as they needed to insure the check cleared.

    This was part of so-called "banking reform".

    Best,
    Dennis
     
  5. Paladin

    Paladin Well-Known Member

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    "Federal law was changed that stated that banks could hold funds on checks for up to five days",, Yes, but hold funds on a certified check?? IMHO that bank is in need of operating capital, and that's about the easiest way for them to use others money, under the disguise of "federal law".
     
  6. pendennis

    pendennis Well-Known Member

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    Not my law, Paladin. If you had a longer-term relationship with the bank, and they were sure of the funds source, they would sometimes clear the same day.

    Check fraud is a bigger problem than it used to be. People have access to blank paper stock for checks, and anyone can buy a MICR printer.

    Last week a neighbor called me, saying her aunt had received a certified check from a bank in Texas. It seems her aunt had "won" $150K in a "Reader's Digest Sweepstakes". The source address of the check was a legitimate financial institution.

    However, things began to turn sour very quickly when I searched for their phone number, and it was in Quebec. My neighbor is a former bank manager, and she knows checks. She said it looked legitimate in every respect, right down to the bank routing number.

    She took it to her bank, they ran the routing number and found it was correct.

    The hook in this scam, was that her aunt was to deposit the check, send the "sweepstakes a check for X amount of dollars in processing fees, and they would send her the winnings of $150k.

    Now, the legitimate bank would dishonor the check, the scammers cash the check for X dollars, and the scammed is out fees, her personal check, and maybe more, especially if the scammers get an account and routing number. They have her personal check, and could clean out her account in a matter of days. Remember, they have a MICR printer and blank paper check stock.

    She's now contacted the local police, the FBI, and Secret Service. She turned the evidence over to the police, and they will add to their growing list of scams.

    I can certainly see how banks would think that five days might not be enough, since it could take up to two weeks for a "certified check" to sour.

    PS - I managed check printers for Ford for several years. We had almost one hundred printers at various locations. Even in these days of electronic transfers, some suppliers require, employees need, and some settlements require, a paper check. It was a major security job for us to maintain financial and systems controls, and keep money from walking out the door. Our suppliers regularly told of horror stories involving their products.

    Best,
    Dennis
     
  7. Paladin

    Paladin Well-Known Member

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    Thanks for your informative post, Dennis. It's always a delight to read them.

    "they have a MICR printer and blank paper check stock" That's interesting. In that case, and others that you have mentioned, I don't fault any bank today for holding until it clears.
     
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