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Banks holding out of state checks

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kwschumm
Join Date: Feb 2003
Posts: 5764 NW Oregon
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2005-05-27          111599


What is the deal with banks and out of state checks? I deposited an out of state check from a business customer and the teller told me they may put a 5-9 day hold on the funds "due to the amount being more than $5000". I emailed US Bank customer service to complain, and received a response that said the teller was wrong, the hold is 7-11 days. To make it worse, part of the funds would be available in 7 days and the balance in 11 days. Does anyone see any logic in this? I thought new banking rules sped up this process to almost overnight. And what's with the partial funds available in 7 days and balance in 11 day logic? The check will either clear or not. I can't see half of it clearing in 7 days and the rest in 11. I suspect the bank receives the funds overnight and then holds them for 7-11 days so they can earn interest on customer money. Banks suck.



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metastable
Join Date: Apr 2004
Posts: 78 North Plains, OR
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2005-05-27          111600


You haven't heard of ID theft? How about "Demand Checks"? Yes, it is possible to write a check on someone elses account without having access directly to their account or a valid signature. The bank is just covering their ass by making sure they get their money from the other bank before giving it to you. Otherwise, they may be liable. I would PREFER a bank that was as caution as yours. ....


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kwschumm
Join Date: Feb 2003
Posts: 5764 NW Oregon
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2005-05-27          111601


I have deposited dozens of checks from this same customer, and they haven't held those. Why now? Besides, if it did bounce they would just come back and yank the funds back out of my account. I have plenty there to cover it and have been banking there for seven years. ....


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jimbrown
Join Date: Nov 2003
Posts: 56 Cochise cnty Az
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2005-05-27          111602


My bank does the same. They tell me 10 days but I usually find the funds in the account in 3 or 4 days. I deposited a couple of 40000 and 50000 ones though and they had have a 10 minute conference before they would even except the things. ....


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metastable
Join Date: Apr 2004
Posts: 78 North Plains, OR
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2005-05-27          111608


Ken, as you know, the meth-heads are really making a run of the system here in the Portland area. Your bank may have just been stung with some bad checks, so their security is probably a little tighter than normal. Hang in there... ....


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kwschumm
Join Date: Feb 2003
Posts: 5764 NW Oregon
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2005-05-27          111609


Maybe that's it. Maybe the banks are taking advantage of the situation a bit too. I'll visit a few other banks and talk to their new accounts to check policies elsewhere. My bank has about a 300% turnover rate and they're always screwing things up anyway. Unfortunately, there's only one bank in Banks :) ....


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bvance
Join Date: Jul 2004
Posts: 280 The Great Pacific NorthWet, Olympia, WA
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2005-05-27          111617


First of all, a disclaimer. I'm a banker. There is lots of fraud out there and banks do need to be careful. Lots of acid washed checks, (original payee removed and fraudulent payee added) stolen checks, forged signatures etc. The only way banks can protect themselves and innocent customers is to place holds for the possibility of returns.

However, sounds like you have a long-term good relationship with your bank and they most certainly should take that into consideration and for that reason they should not place holds on your deposited items. The problem is the bank. The bank you mentioned (orignally based in Portland) is one of the major national banks and unfortunately you are only a number to them. I know because I worked for a bank that was acquired by them and left to go to a community bank. You should too. A community bank has much more interest in your business and will likely not treat you like a number. You have a number of well run community banks in your area. Give one a try.

Good Luck!
....


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dkheckmanl
Join Date: Dec 2003
Posts: 134 Middleton, ID
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2005-05-27          111618


I have checking accounts at two different banks (one is US Bank)and a credit union. All have the same policy on the deposit and holding of larger out of state checks. The only thing that bothers me is that with present day technology any check I write is suppose to clear my account within a day or so after it is cashed by the receiver so why doesn't any check I cash clear the writers account within a day or so. I agree with Ken that is just one way the bank can make money on interest. ....


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bvance
Join Date: Jul 2004
Posts: 280 The Great Pacific NorthWet, Olympia, WA
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2005-05-28          111619


You are right, it does only take a day or two for a check to clear. But if it does not clear and is returned for some reason, the special handling of the return can cause the return to take several days. Throw in a weekend and you've got your 7-10 days total elapsed time. It does not come back as quickly and effeciently as it was processed.

The important thing in any check transaction from the bank's point of view is "know your endorser". When you deposit a check to your account, you are the endorser and are liable for that item. If the bank knows you and trusts you and you are creditworthy, they should not be placing a hold on the deposit. Most national banks don't bother to get to know you or employ untrained staff that do not have the ability to know a good customer from a bad one, so they simply treat all customers the same way....as bad customers. Everyone loses then.

Again, find a bank that cares, get to know the manager and supervisors, explain to them your type of business, your needs and I'll bet they will take care of your needs without the hassle.

....


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kwschumm
Join Date: Feb 2003
Posts: 5764 NW Oregon
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2005-05-28          111635


Thanks, bvance, I'll look around for a local community bank. I never had these types of issues with the community bank we had in Vancouver WA so going back to what works makes sense. ....


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bvance
Join Date: Jul 2004
Posts: 280 The Great Pacific NorthWet, Olympia, WA
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2005-05-28          111666


Ken,

Bank of Clark County in Vancouver is an excellent community bank. Mike Worthy is the CEO and a good banker and a good guy. Know him personally. You may want to give them a try. If I can be of further help, e-mail me off line and I would be happy to answer any other questions or discuss further.

Good Luck! ....


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kwschumm
Join Date: Feb 2003
Posts: 5764 NW Oregon
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2005-05-29          111681


Thanks, bvance, but that won't work. It takes me an hour to drive to Vancouver now. Do you know of any good banks in the Hillsboro, Oregon area? I was thinking of trying Bank of the West since they are only 25 minutes away. ....


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JAZAK5
Join Date: Jul 2003
Posts: 276 coxsackie,ny
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2005-05-29          111690


in the future a "bank" check would be the way to go its CASH and would be good practice or have the money "WIRED" to your account ....


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brokenarrow
Join Date: Jan 2004
Posts: 1288 Wisconsin
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2005-05-29          111697


Think you have problems with your institution? I am a personel representative of an estate. I decided to continue his accounts at HIS old bank because the personel banker he used is a sweetheart and treated him very well! All the locals gals there liked him and expressed sincere regret in his passing. I felt fine keeping funds there and adding my name as PR to the newly opened accounts. Here is where the nightmare starts. Most funtions can be done thru the local branch. Cool right? I have over 100K tied up in this bank and need to pay bills!!! I can not start liquidating (passing out the money) untill I settle the discrepency in his accounts. I requested statements from the date I opened the accounts till the present. The local branch told me I need to call the 1-888 number and order them!!!!!!!!!!!!!!!!!!!!!!!! What the H--l is this??? So I cals them and they charge me $5 a sheet!!!! Thats 40 bucks that at my bank I can go online and copy (all the way back to a year past) for free!!! OH It gets better. 16 days ago I had to call them back because I needed statement from the date of his death till the date I opened the new accounts. (The $2200 discrepancy stems from checks that came in to the bank before I opened up the new account) I give them ALL the info I have over the phone. after 30 min. of holding and checking she comes back and tells me that she does not know if they can do this!!!! I told them, "What???" I am the personel representative of this estate!, You guys have the signed and stamped seal of approval from the JUDGE! What do you mean I may NOT get this information? I legally can find out if he took a crap when he was 5 yrs old or not! LOL.
Anyway she told me," If it is allowed we will send them to you (for anouther $10) If not we will call you.,. I call them back 12 days into this and ask whats UP? She checks on this, (10min later) and tells me that they are working on this right now as we speak! I told her," You mean they are pushing the button that say's PRINT?????? LOL
It has now been almost a week since I talked to her and still have not recieved anything.
I can tell you with out a dought that I will never use TCF bank in my life for anything> I have over 75K in expenses that need to be paid out and can't do it till they clear this info. All over a lousy $2200.
Sorry it was so long but had to get it off my shoulders after reading your post kwschumm!
I agree with you though, why is it that they can TAKE your money electronically almost imediately "out" of your account but can not put it IN almost imediately? ....


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bvance
Join Date: Jul 2004
Posts: 280 The Great Pacific NorthWet, Olympia, WA
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2005-05-29          111701


Ken, Do you have a West Coast bank branch near you? They are a Portland based community bank and do a nice job. I would recommend them over Bank of the West.

Brian ....


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kwschumm
Join Date: Feb 2003
Posts: 5764 NW Oregon
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2005-05-30          111723


Jazak, if by bank check you mean cashiers check, those can bounce too and can be held. eBay scammers send out forged cashiers checks and money orders all the time. Electronic transfers would be best but this customer doesn't do them. It's probably best that they don't since their accounting dept. is a complete mess. ....


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kwschumm
Join Date: Feb 2003
Posts: 5764 NW Oregon
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2005-05-30          111724


Brian, thanks for the recommendation! I think West Coast will work - they have branches fairly close in two directions from me. I'll give them a try, and probably won't miss US Bank much at all. ....


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bvance
Join Date: Jul 2004
Posts: 280 The Great Pacific NorthWet, Olympia, WA
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2005-05-30          111727


Ken, Just a suggestion, but stop by one of their branches and talk with the new accounts person. Ask them what their policies are. Explain to them what you do and how you would like to do business. Ask about their hold policies. While you are at it, ask to meet the manager and explain once again what you do.

Banking is a relationship business. They need to know you and you them. All too often folks open an account, start doing business without making sure the bank will do what they want done. Interview the bank and if you don't like what you see, go elsewhere. If you do open account relationships, make sure you have a contact person that is preferably an officer that has the ability and experience to make decisions. When a need arises, you can ask the teller to contact that person for approval if needed. Keep your contact person informed if you're doing something unusual. As time goes by, hopefully one can develop mutual trust in each other and a long-term solid relationship will result.

You might say that is the bank's job to take care of you and it is, but one also needs to help create that relationship that will help immeasurably down the road.

Good luck! ....


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