When did banks start charging to cash checks drawn on them?

[notadmblnd]

I wrote a small check to one of my nieces. When she presented it at my bank, they refused to cash it unless she paid a $6 fee.

[Nicholas D Wolfwood]

1. A while ago

If you don't have an account with them and the check is not issued from that bank, they've been charging fees to cash checks for quite a long time now. This isn't new.

[notadmblnd]

I'm aware of that. We both have accounts at the bank

My nieces account has been inactive. They told her that she would need to open a new account or pay 6 dollars to cash it.

[LibDemAlways]

11. You'd think given that she had an account with them

(even though no recent activity) it would be in their best interest to waive the fee and keep a customer happy. Perhaps she'd then be more likely to start using that account again. Penny wise, pound foolish on the part of the bank.

[gateley]

2. B of A charged me $5 to cash a check from a friend about 2 years ago. I was

shocked.

[grasswire]

3. dunno, but they have to recoup the losses...

...from the new regulations in some way, they say. Gotta keep the bonus pot filled.

Pirates.

[slackmaster]

4. Bank of America was doing that in the '70s

A pox on all their houses.

[Deep13]

5. 1990s when the American Law Institute revised...

...the Common Law bank rules with the new Uniform Commercial Code articles 3 and 4.

[Gormy Cuss]

6. At least fifteen years ago.

Unfortunately it's one of the popular new ways to nickel and dime people. Unless you have an account at the bank you may be charged a fee for cashing a check that the bank knows full well will clear.

Swell, isn't it?

[FarCenter]

7. It is a high fraud risk situation

Since the bank doesn't have a relationship with your niece and is taking a chance that she is not the person that the check is made out to.

[sharp_stick]

13. Of course

because it's simply too hard to ask for some form of ID. If they would cash a check without some form of ID I'd say it's a check cashing pawn shop/liquor store and not a bank.

High fraud risk, to a bank that's a line designated for the simple and direct purpose of nickle and diming the next person to death.

[gateley]

16. Not only did they ask for my ID, they made me give a fingerprint! nt

[FarCenter]

17. That is somewhat of a deterrent, but usually, if it is fraud, the bank just writes it off

It would cost too much to investigate a small fraudlent check, and the prosecutors wouldn't be interested anyway.

[gateley]

19. Understood, but it was just another thing that pissed me off. The teller said

if I opened an account with them I wouldn't have to pay the $5 fee! I said "I closed my account at this bank because I didn't like some of the things it does to its customers, I'm not going to open an account with a bank I dislike just to "save" $5."

I hate them all.

[gopiscrap]

29. you got off easy

I had a check written to me and it was in another state from a firend of mine...while visiting him I went to his bank (22.00) check and tried to cash it..they wanted id, name rank serial number, right arm and first born child...it was fucking ridiculous...I told my friend that there was going to be a5.00 charge on his check and he just tore it up went to machine and got the lousy 22.00 BANKS SUCK they are all a bunch of greedy mother fuckers

[laughingliberal]

26. We work for one family here who uses an independent state bank

We were shocked to find their bank never charges us to cash their checks. Shocked because all the others do seem to. I don't buy the fraud thing. I don't see where $5-6 is going to help much if I'm not the legitimate payee of a $2000 check. Some of them get very aggressive about trying to get you to open an account which we are not about to do. There is one that us and some other tradesmen have found will even tell us the check is not good when it certainly is. Once we called the account holder from outside on our cell phone and he said, "I'll call you right back." He called back in about 2 minutes and told us the check was perfectly good and go in and try again. Boy, did that teller act sheepish. What's the damned deal with them. It's like as soon as you deposit your money there they think it's theirs and don't want to ever let go of it again. If it happened today, I would tell this customer about the banks I know of that don't hassle people about cashing checks drawn on their banks.

[progressoid]

27. Huh? How would the $6 fee deter fraud?

[FarCenter]

30. Asking for ID and fingerprints deters fraud -- the fee offsets the losses

Obviously only a small percent of such transactions are fraudulent. For example, if a bank cashes 100 checks for $600 and one is fraudulent, the $6 fee collected on the 100 checks offsets the $600 loss.

[LibDemAlways]

8. That sucks. I'd go have a talk with the manager and find out what the

policy is and when it was changed. More and more banks are coming up with all kinds of nonsense fees. Probably best to shop around and see if there is a local bank that really wants the business and is more customer friendly. People still have some (although increasingly limited) choices.

[spinbaby]

9. Ours just started charging to write checks

Not a regular checking account, but a money market account that gets a whole 2% interest.

[LibDemAlways]

10. Isn't it amazing that banks today pay shitful 2% (or less) interest on

CD's but charge 30% interest on their stinking credit cards? Screwing the little guy is the name of the game, and no one with any power to do anything about it cares.

[Chellee]

12. Chase has been doing this for at least 4 years.

I was working for a small book store. Took my tiny paycheck into Chase since I wasn't near my own bank and the check was issued by them. The teller and then the manager and I went round and round about the fee. I kept saying, "But you issued the check, he has an account with you, it's your check." "But you don't have an account with us," they'd say. "But HE DOES, it's YOUR CHECK." They didn't care. At the time, it was only $3. But it was the principle of the thing. It was their check! I'm still mad.

[LibDemAlways]

14. I once had a bank absolutely refuse to cash a check written by

my husband out of a small account that had only his name on it. I would have been happy at that point to pay any fee since it was an emergency and I needed the cash, but the bank wouldn't budge. Said I had to deposit the check into an account. I was beyond pissed.

[notadmblnd]

22. I'm pissed off about it too. I ended up giving her my bank card

she ran to the corner and got cash and gave me the check back.

[nykym]

15. Just another reason

to MOVE YOUR MONEY! Go to the link they have the story and a tool that will help you locate local banks.

"People all over the country are choosing to move their money out of bigger banks and into smaller, community-oriented financial institutions that generally avoided the reckless investments and schemes that helped cause the financial crisis.
Fueled by the personal initiatives of thousands, it’s a grassroots effort that has the potential to shift power in the financial system away from Wall Street and to Main Street.
Check out the video, read up on what inspired the idea, connect with others through Facebook and Twitter and then use the tools and links provided to find a community bank or credit union in your area".

http://moveyourmoney.info/

[salguine]

18. Another opportunity! Check this out:

http://moveyourmoney.info/

[notadmblnd]

20. I just looked at the link. TCF National Bank

is the only one on the list with about 15 branches in my area. They list them selves as a national bank not a state bank or community bank. If it is the only one on the list, how small can it be?

[verges]

21. That ain't nothin'!

The bank in my grocery store (I think it's US Bank) charges a percentage to get change!!

[notadmblnd]

23. greed. aint it grand?

[upi402]

24. maybe we should boycot the big banks, go with small locals or credit unions

i dunno but the big banks need to feel some pain from us, cuz our "leaders" are rewarding their corruption.

[AnneD]

25. I have a credit union account....

We deposit checks from banks regularly so there is no charge. We haven't had an incidence like what you describe-I think they honour their checks as far as I know. I am extremely happy with my CU. They call me a member and it beats the soxs off of being a customer.

[SoCalDem]

28. And yet, B of A cashed TWO $900 checks drawn on my son's account

after someone broke into his truck & stole his check-book.

The cops said it was an OBVIOUS forgery, and B of A did replace the money, but only after a LOT of aggravation. This happened the day before they closed on their first house, so there was a LOT of anxiety in their lives at that time.

[planetc]

31. I left commercial banks long ago

And the credit union I joined in 1983 started off by giving me free checking with no minimum balance. All these years later, they will, if I should sell this house and need financing for another house, supply me with a lawyer for a $175. flat fee for the closing, as well as giving good service in other ways. Checking is still free, their Visa works fine, and I have been a happy member for 24 years.

My advice to all ye who are heavy burdened by commercial banks: call your local credit union and ask what they have to offer. You may find yourself being treated like a customer, instead of a patsy. The experience may make you feel dizzy with shock, but I assure you, there are some businesses left in America who understand that their customers want to give them money in exchange for good service, and are willing to work for the privilege of getting your business. Happy hunting!

[ddeclue]

32. Must be a BofA account..

[demigoddess]

33. shocking. they get you coming and going. They charge for accounts that are

idle ( I thought the idea of saving was to put money in the bank and leave it there) and money to have a check cashed. I have lived when checking accounts were free if you kept 200 dollars in the account at all times. In the old days if you did not have that much money you could put it in a 'christmas' account and have a small savings without the fees. Needless to say they don't have that any more.

[notadmblnd]

34. Christmas club accounts dont even exist any more do they?

Not money makers for the banks. Besides they want you going into debt (using their 30% interest charge cards) to pay for Christmas.

[gleaner]

35. I think it was last year ...

after the bailout. Chase, my former bank charged $15 for a wire transfer of money to them from my sister who was helping me out with my mortgage by cashing in her IRA. The money went to chase for the mortgage payment, but they told me they would not retract the $15 dollar charge. When I asked them when this policy became effective they told me it was in the booklet they had sent me when they took over my former bank. I hadn't seen it, so I asked them to tell me where exactly in the booklet I could find it. They said they didn't know. Uh huh. I looked again and it wasn't in there. The new banking rule seems to be make it up as you go along and then lie about it later.

My accounts (except for the mortgage which I can't take from them because I am underwater) are now happily reposing in a credit union which doesn't do things like that and makes sure you understand what they are doing and why.

If you are with a big banking chain please go to a small bank or better yet to a credit union. There are credit unions which will fit you. They want your accounts and your business and they will treat you very well. Failing that, buy your niece a money order or cashiers check. You pay a little up front, but I don't think the banks can charge for processing and she can probably cash it somewhere else if they do.

[Fuzz]

36. I thought that was illegal, or at least used to be.