Bad Check? Fraud by Deception?

fantasymaker · #1 02/21/09, 11:34 AM

Thursday A major company writes be a Check. So of course I take it to my bank to cash it. They tell me The funds wont be available through them for 5 business days, a week.
They suggest that I take it to the bank it was wriiten on so I load up to make the 200 mile trip to cash the thing.Luckily I find a branch of it only 50 miles away and go in there.
They look at it and have me sign it THEN tell me they have to get it appoved from the main bank.
It wont clear.
Seems the company that wrote the check has a deal with the bank that the bank wont cash their checks till the company sends the bank a electronic tape that provides full details of the check and a clearance to pay it.
Ok Im a understanding kind of guy so I call the guy that wrote me the check and inquire as to why it wont clear. He says OPPS I should have told you and tells me it will probably clear friday but I might wanna wait as late as I can to try to cash it.
So friday at 3:45 Im there at the bank AGAIN. Nope not then either but they mention that the company might send it in at 4 when the lobby is closed but I can use the the drive up.
So at4:50 I try the drive up. Now they tell me They cant do it because the supervisior is gone and they cant do a large check with out her .
BUT
There is another branch nearby that is open till six that I can use. I get there at 5:50 and agin find out that the company hasnt authorised they check.
They wont give me any proof they wont honner the check. They say its good. But In my book a check you cant get money for is bad.
In this state they prosecute bad check writers pretty agressively......................But I cant get proff they wont honner the check!

plowjockey · #2 02/21/09, 11:47 AM

It probably won't be considered a bad check, unless you can't collect on it at all. What they did may or may not be legal.

I agree that is does not sound right right, but it is not surprising nowdays, that banks are watching very closely, to make sure their funds are covered and if it is a inconvenience to you, then too bad.

Another sign of the times.

wally · #3 02/21/09, 11:58 AM

I can understand where you are at.I got a refund check from Home Depot and went to the store to purchase some other items and they would not accept their own check...Iam glad Lowes is 50 miles away
wally

fantasymaker · #4 02/21/09, 11:58 AM

I think this is more a thing from the company than the bank. Im sure it lets them say a few bucks on interest but its a huge inconveiance to me.

fordy · #5 02/21/09, 12:02 PM

..............Use that check and establish an account at the nearest bank(with the same name as on the check) too you . When it bounces or clears then transfer that money into your personal account at your regular bank . What a load of BS you went thru and you're still not paid ! , fordy

ninny · #6 02/21/09, 12:07 PM

I would have to give some really serious consideration before I ever did business with this co. again.
Large co.'s are notorious for stuff like this.

.

Common Tator · #7 02/21/09, 12:08 PM

I would be making phone calls instead of trips. And after a week I would be back at the company telling them their check is no good. Either pay up in cash or you will prosecute to the fullest extent of the law.

Jim Bunton · #8 02/21/09, 12:09 PM

Quote:

Originally Posted by fantasymaker

Thursday A major company writes be a Check. So of course I take it to my bank to cash it. They tell me The funds wont be available through them for 5 business days, a week.
They suggest that I take it to the bank it was wriiten on so I load up to make the 200 mile trip to cash the thing.Luckily I find a branch of it only 50 miles away and go in there.
They look at it and have me sign it THEN tell me they have to get it appoved from the main bank.
It wont clear.
Seems the company that wrote the check has a deal with the bank that the bank wont cash their checks till the company sends the bank a electronic tape that provides full details of the check and a clearance to pay it.
Ok Im a understanding kind of guy so I call the guy that wrote me the check and inquire as to why it wont clear. He says OPPS I should have told you and tells me it will probably clear friday but I might wanna wait as late as I can to try to cash it.
So friday at 3:45 Im there at the bank AGAIN. Nope not then either but they mention that the company might send it in at 4 when the lobby is closed but I can use the the drive up.
So at4:50 I try the drive up. Now they tell me They cant do it because the supervisior is gone and they cant do a large check with out her .
BUT
There is another branch nearby that is open till six that I can use. I get there at 5:50 and agin find out that the company hasnt authorised they check.
They wont give me any proof they wont honner the check. They say its good. But In my book a check you cant get money for is bad.
In this state they prosecute bad check writers pretty agressively......................But I cant get proff they wont honner the check!

I would suggest that you go to the states attorney's office and explain to him what you are telling us. What is happening sounds like a form of check kiting and it is illegal in many if not all states. Did you receive the check in the mail? If so I would contact your post master general There may be a law about using the mail to kite checks. He would tell you for free a lawyer will charge you for the information.

Good luck Jim

fantasymaker · #9 02/21/09, 12:21 PM

Yep another wonderfull thing about this is I cant just call the bank and ask if its good yet I have to present it.
While Id like never to have anything to do with this company Im stuck doing business with them as long as I own my farm.
After a week? LOL I called the company while at their bank the first time.
Ticks me off they save $50 on interest for a few days and I lose the entire use of it all. no weekend in tahiti for me.

Sawmill Jim · #10 02/21/09, 12:50 PM

I would present it to the bank an when they say no tell them to stamp it as insufficient funds .Here i call the bank it is wrote on an give the routing numbers on the bottom of the check an ask if it will clear at that amount . I think they are conspiring to deprive you of your money . You are a nice person cause if i were running for king i would of done crowned someone

They also got a state banking board i would raise more cane than a pig under a gate

edcopp · #11 02/21/09, 12:54 PM

Quote:

Originally Posted by fantasymaker

Yep another wonderfull thing about this is I cant just call the bank and ask if its good yet I have to present it.
While Id like never to have anything to do with this company Im stuck doing business with them as long as I own my farm.
After a week? LOL I called the company while at their bank the first time.
Ticks me off they save $50 on interest for a few days and I lose the entire use of it all. no weekend in tahiti for me.

For whatever reason you may be stuck having to do business with this company, BUT you are not required to accept their check. I would drop them a certified letter explaining my position to them, and explaining that ALL future payments to me would be required to be in "Legal Tender". In other words cash. If the company is incorporated or some other type of entity I would also send a copy of my letter to the Attorney General of the state where they are located.

This type of operation is the basis for many scams that are in operation right now. The idea being that you cash the check using your good name. When it bounces the outfit that wrote the check is nowhere to be found.

Play hardball, let them wire you cash.

ninny · #12 02/21/09, 02:30 PM

Quote:

Originally Posted by fantasymaker

Yep another wonderfull thing about this is I cant just call the bank and ask if its good yet I have to present it.
While Id like never to have anything to do with this company Im stuck doing business with them as long as I own my farm.
After a week? LOL I called the company while at their bank the first time.
Ticks me off they save $50 on interest for a few days and I lose the entire use of it all. no weekend in tahiti for me.

I don't know what your circumstances are or why you're "stuck" doing business with them but if it's because you have a contract with them, I'd review the contract and see what they terms of payment are. With what you're saying what they've done might be considered a breach of contract. If it's not a contractual thing, I'd find some way of not doing business with them.
These people are working off of your money.

.

fantasymaker · #13 02/21/09, 03:03 PM

Quote:

Originally Posted by Sawmill Jim

I would present it to the bank an when they say no tell them to stamp it as insufficient funds .Here i call the bank it is wrote on an give the routing numbers on the bottom of the check an ask if it will clear at that amount . I think they are conspiring to deprive you of your money . You are a nice person cause if i were running for king i would of done crowned someone

They also got a state banking board i would raise more cane than a pig under a gate

They wont stamp it insufficant funds they keep telling me there is plenty of money there. But its sorta like the company has a stop on the check except they dont call it a stop and wont give me anything saying that either..

This is a pipeline that crosses me. Id have rather they went elsewhere but ya cant force them to.

Macybaby · #14 02/21/09, 03:43 PM

This is not an uncommon practice. With the normal float, you would have never known. At most it would have been held a few days at the payor's bank until they received the check run file, then it would have gone through. You should have called the Payor and asked them when the check would be "good". They could have called the bank and authorized the particular check. Most likely they do a regular check run and then send the file to the bank, and your check was cut early.

At work we have a close relationship with our local bank (Wells Fargo), if someone presents a check to our local bank that we have not approved, the bank gives us a call so I can personally authorize it if needed. Has only happened a few times in 6 years. Once we wrote a large check to deposit in another bank account, and forgot to authorize a check we wrote to ourselves!

This is NOT like insufficient funds, it's more like stop payment, but not quite that too. Either you got to the bank way faster than they expected, or someone dropped the ball and forgot to send the authorization file. That could be very likely if the check was cut outside of normal procedures.

Cathy

Ed Norman · #15 02/21/09, 04:56 PM

How about when a wire transfer is held for a week? The sending bank verified the sender had the money. The receiving bank knows a wire transfer is good. But still it is held a week to grab some interest.

firegirl969 · #16 02/21/09, 05:19 PM

If you have a checking account in any bank, go ahead and deposit it. That way within about 48 hours they will have to either clear the check or mark it insufficient funds and send it back to your bank. If it is over $500 and is insufficient that is a felony. They can't hold it when your bank sends it to them, they will have to take somekind of action. If you do not have a checking account, open a savings account to put this company's checks into and withdraw all but a small amount of the money when you get paid. Keep just enough in the savings account to keep it open. Good luck, firegirl

palani · #17 02/21/09, 05:25 PM

That is one of the functions of a notary and why all banks have them. Do a notary protest on the dishonored instrument and you get to charge interest for as long as it is not paid.

Of course if you want to be nasty and the action is justified you can record a mechanics lien against the deficient bank account. That way they cannot remove any funds until the lien is removed.

fantasymaker · #18 02/21/09, 05:34 PM

Quote:

Originally Posted by palani

That is one of the functions of a notary and why all banks have them. Do a notary protest on the dishonored instrument and you get to charge interest for as long as it is not paid.

Can you tell me more about this? Not sure its a big deal when the interest is only $10 a day or so,

momtaylor · #19 02/21/09, 06:03 PM

Not sure its a big deal when the interest is only $10 a day or so

well if it's been a week then it's up to at least $70 and that is more money than I would want to lose for ANY reason.

arabian knight · #20 02/21/09, 06:36 PM

For goodness sakes why not have the checks like that Direct Deposited?? Geesh that IS after all the modern and the 21st Century way of doing business~! Anything from Payroll checks to even lottery winnings for pete's sake can be direct deposited and you then can forget all this headache stuff that seems to be happening.