Have you ever experienced not being allowed to encash checks by the same bank where the fund is drawn? Perhaps you were declined because you didnt have an account with them. Here is one story.
Bank involved : TD Canada Trust
Date occured : Before Christmas of 2007
About two weeks before Christmas ( 2007) my 17-year old daughter was so excited about getting her first paycheck from her new employer. A week before that, she was asking me almost everyday while driving her to school, if she would be able to encash her check once she gets it. On my part, I kept on assuring her that she would, as I see no reason why she could'nt. Are you sure Dad? She always asked. And as I always answered with confidence, "Yes Baby, you will".
Finally, she got her check 4 days before Christmas. I can see how happy she was knowing that at least she still has 3 days to shop, and this is the first time in her life that she will be proudly shopping gifts with her own hard-earned money.
December 22, she asked me to drive her to Square One, a major shopping mall in Mississauga, Ontario, Canada. She invited her mom to come with her so she could chose what she likes most for Christmas, but first they had to go to the bank to encash the check.
After almost an hour or two, I met my daughter with her mom. She looked so sad and teary-eyed when I asked her why. She said, the bank declined to encash her check unless she has an account with them. Since she doesnt have, the bank suggested that she opens a bank account with them so that they can encash the check. However, she wasnt told that she could'nt withdraw her money until Jan 4, 2008. Now, she said, all her plans for Christmnas was shattered, and she couldnt understand why the bank would still need to hold that money even past New Year.....Its only a little over CDN $200.
( To appease my daughter, I ended up lending her an equal amount so she could still fulfill her Christmas shopping wishes)
Case in point :
Is this really a general policy common among banks ( in Canada or elsewhere)
If so, do you think it is fair? If you think it is not fair, what do you think should we do? At least saying something and be counted would be a first step.
Please post your comment or suggestions. Should you have similar experience, please let us know.
I have similar other experiences to be posted which prove that a little knowledge and little more time to fight for your right make difference.
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4 comments:
I had the same experiences with Bank of Nova Scotia and Royal Bank.
That one with Nova Scotia was even worse than TD.
That of Royal Bank had a good ending but that was owing to my extra effort. A good learning point to share.
I will write the details for each of these " bloopers" in my subsequent articles.
Experience With Bank of Nova Scotia ( BNS)
July 2007
My experience with BNS was a bit more frustrating. I got a check from a friend who also work with the bank as one of their senior managers.
The check was drawn at a BNS branch in Markham. I deposited it in my account with the same bank at a different branch in Milton and was told that they gonna hold it for 7 banking days.
I asked the staff at my branch why will they put a hold on the check when it is an " in-house clearing" check. I talked to the branch supervisor and also told her to take it up with her manager but still to no avail. They told me, they are just following bank policy. So I asked, can you give me a letter to officially confirm in writing what you guys are telling me but they didnt want either.
I left and on the following day, I had the chance to check with my friend if it is indeed a bank policy to hold "in-house clearing" checks that long . My friend told me that it is subject to the discretion of each branch management. Perhaps I should try and see again the people at the branch. She informed me that the amount has already been taken out of her account as of the 2nd day after I deposited the her check.
The next day, I went back to the my branch and tried to talk again with the supervisor and the manager, only to be told the same thing.
Grudgingly, I told them, I am very disappointed. I couldnt understand why in this high-tech age, they still should put a hold on the check for 7 banking days when it takes them only a day to take it out of the payor's bank account. I remember, even before the IT revolution, the most that checks could get cleared is 3 banking days and this was for "external" Clearing Checks". In house clearing chechs were normally cleared within the same banking day unless they were deposited after bank cut-off for the day.
I really cant understand why things has to go worse like this when it should have gotten for the better.
In the end, the bank won and their greed and opportunisitic policy prevailed.
Question:
For whatever reasons imaginable, do you think it is fair for the bank to exact that policy which is self-serving to their interest?
For them holding that money actually would increase their so-called FLOATS which are actually peoples money which they use for FREE. I guess bank floats are so important for them because it is one measure of branch performance.
If you have similar experiences, please share it with us. The more we gather, the stronger we could be in fighting this self-serving bank practice.
Experience with Royal Bank
July 2007
This one is interesting. You'd learn one good lesson from this.
Just like in the previous postings, I was again encashing a Check. This time, the check was issued to me by a reputable company based in Montreal. The check was drawn against the company's Royal Bank account in Montreal and I was encashing it in a Royal Bank Branch in Ontario.
Upon presentment, the bank's lady teller told me that she could not encash it specially that I dont have an account with them. It was suggested that I just have to deposit it in the bank where I have my account but I said, I needed the money now. I was thinking that If I deposit it to my account in BNS, then they would put a hold to it again for 7 banking days more particularly that it is of another bank's check.
I asked the lady if she was sure that she could not encash it..She sad YES. Of course with the same lame excuse that "it is the bank policy and she is just following it"...Again I requested for a written explanation why they could not encash my check but she wasnt willing either.
Worse, the lady told me that I should go to Montreal if I want to encash it. At first, I thought she was kidding but no.
This time I thought of doing something different.
I hurriedly went back home, a 5 minute drive from the bank, and browsed the internet on bank complaint procedures. I remembered that each bank has an "Ombuds", someone who attend to customers complaints and ensure good customers service among others.
Luckily, I found a very explicit policy from the bank's Ombuds Office that says without qualification, that a payee can encash a check drawn againts the bank for as long as the payee has proper identification.
I printed a copy and hurriedly went back to the bank. That time I was almost sure Id get the upperhand in dealing with the matter.
I went back to the same lady teller and showed her the printed copy of the bank policy and I asked her, wouldnt you honor this?
I ask her to refer it to her supervisor and manager who later on asked me to come and see her at her office. At first the manager didnt seem to believe what I found. I told her, this is your bank's policy more particularly coming from your Ombuds Office--are you telling me that you are not bent on complying with this policy?
After a couple of times exchanging views and perhaps noting that I have a strong cause, the manager agreed to encash my check serving me like a VIP.
Finally I won and I had the momentous event of enjoying my first victory in the spirit of a
" bloopers patrol"
Lesson Learned:
It is clearly evident that if only we know what resources are available to consumers in fighting unfair practices like this one, we wont fall victim almost all the time.
Clearly also, this is one of my motivating factors behind "bloopers patrol".
If you know or there is someone you know you could tap for help in fighting unfair business practices, greed or opportunism such as this, Im sure there would be more battles we could win.
Next Mission:
Our next mission is to find out what policies all the othere banks have in common toward encashing of checks...If it works well with Royal Bank, why cant the others follow....that good practice of Royal Bank should be standardized.
Hence the more readers voicing the same issue, the higher our chances to push for appropriate regulations to protect our interests as consumers.
This is the spirit of my advocacy under the banner of BLOOPERS PATROL.
Good to remember all these.
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