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Another surprise from my bank

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Just saw this article on Bankrate while looking for something else:

 

States Act Against Banks Policies ...

 

What I thought was most interesting was this paragraph, which I'm pretty sure is WRONG:

 

Say you write four checks on one day. Your bank will clear the biggest check first, even if you wrote it last. If it bounces, every subsequent check bounces, too -- and you get socked with four bounced check fees instead of one. With fees as high as $30 a pop, you can be paying some serious cash for that budgeting faux pas.

 

If a bank processes checks from highest to lowest and the first bounces, every subsequent check does not necessarilly bounce. For instance, say you had $795 in your account and wrote an $800 check and 3 $10 checks. If the bank bounces the $800 check the 3 $10 checks would all still clear.

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There is really no excuse for a person to write a bad check. (Blaming banks won't help) Calling them evil for you not having enough money in the bank account for you making a mistake won't help. (Banks do make mistakes rarely)

 

With check 21 you should know that the days of floating a check are gone. It can be deducted instantly.

 

Get online banking, it will help!

 

If you are not responsible enough to keep up with your account then you have 2 options. (1) Cash only, which is kinda stupid these days since the advent of direct deposit. (2) Bank with a bank that will use your credit card and/or give you overdraft protection. Why pay fees when you can have overdraft protection---although I never would advocate trying to float checks.

 

Remember that check kiting is against the law. People do go to jail for bad checks when they don't have the money in the account to begin with... it’s called forged instrument or something to the effect but it is the same.

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I had payroll checks bounce that caused checks that I wrote to bounce. I suppose that would still fall under the "there is absolutely no excuse for writing a bad check" statement.

 

How was that my fault? It took 2 weeks for the payroll check to come back bad... should I have waited 2 weeks to pay my bills?

 

Just wondering.

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I had payroll checks bounce that caused checks that I wrote to bounce. I suppose that would still fall under the "there is absolutely no excuse for writing a bad check" statement.

 

How was that my fault? It took 2 weeks for the payroll check to come back bad... should I have waited 2 weeks to pay my bills?

 

Just wondering.

"IF" a check is going to BOUNCE it should do so in like 2--4 days max

 

I HAVE DIRECT DEPOSIT!!!

 

CAN'T BOUNCE!!!

 

I LOOK ON-LINE IN THE MORNING (to confirm the deposit) AND PAY BILLS ON-LINE BEFORE I GO TO WORK

Edited by GEORGE

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There is really no excuse for a person to write a bad check. (Blaming banks won't help) Calling them evil for you not having enough money in the bank account for you making a mistake won't help. (Banks do make mistakes rarely)

Yes, there is no excuse to knowingly write a bad check. However, that does NOT excuse a bank from having a policy that makes it worse for the customer than it has to be.

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I recommend getting a bank that will show you online your "real time" account information. I rarely write checks, my bank shows real time information, i.e. if I use my debit card at the grocery store, by the time I get home the transaction shows online.

 

Use your debit card and you don't have to worry about bouncing checks.

 

That being said, I will say that once I did have a bank screw up my paycheck deposit (luckily I still had the deposit receitpt.) This was back in the pre-debit card days.

 

It does happen, but it's a lot more rare then people like to admit.

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My rule of thumb is not to make payments unless I know I have the money to cover it regardless of how the checks, electronic payments are processed. I've never bounced a check and have no intentions of doing so.

 

Now I did have one situation once where I made a deposit, and it was held up for some stupid reason. I had to raise some serious sand on that issue. Turns out it was a shady teller holding up funds. I use debit cards, and make sure I record every check amount I write. I keep in mind the checks I did write, and when I see the real time amount listed, I will subtract the checks I wrote that did not clear so there are no surprises.

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If a bank processes checks from highest to lowest and the first bounces, every subsequent check does not necessarilly bounce. For instance, say you had $795 in your account and wrote an $800 check and 3 $10 checks. If the bank bounces the $800 check the 3 $10 checks would all still clear.

Well, conveniently banks are very kind these days and I quote- "in order to save you the embarassment and added fees of a returned check" frequently pay the checks up to a predetermined amount (usually $100-1000.00). Of course, this has nothing to do with pocketing (in your example) $120.00 rather than the $30 that they would get if they actually did "return" the check as any righteous institution would. And it most certainly has nothing to do with the actual cost of processing the NSF, which would very likely be less than $10.00 for all 4. :dance:

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Ok, Heres a different situation for you all. I had been under the impression that if you don't have funds available, and you attempted to use your ATM/debit card, it would come back as declined, correct?? It had happened a time or two, I admit (hubby is self employed and when work is slow, money is slooow and vice versa). I use Quicken and my routine was to check the account online every few days and make sure everything was caught up and in order. I hardly ever write a check so when I did, I just kept a mental note and would not add it to my quicken register until it cleared the bank (my bad I know). Anyways, a few years back, over a 3 day weekend.. we spent as usual. Never carried cash. Always using debit card for even $1 purchases (like to know where the cash is being spent) Come weds morn (monday was a holiday so everything cleared Tues midnight) I go to check the account. Low and behold we were OD for some ridiculous amount. I had $500+ in OD fees! Called the bank and the story was that "they allow you to use funds that arent there because it might be for an emergency". Since when!?!??!?!?!?! Total BS....... I was so furious I waited over a month before I brought the account to a $0 balance. I wanted so badly to switch banks but hubby wanted to stay since we had been there for a long time. Now, just to test their "theory" I attempted to use my card when I didn't have funds (months later) and it was "declined". How do ya like them apples??? Sure am glad I didn't have an "emergency"!!!! I say banks are evil. If you must work in one to pay bills, doesn't make YOU evil LOL.. but I sure do miss the days when they cared about customers and looked after our best interest.

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