Posted on 12/31/2011 12:46:09 PM PST by M.T. Helmets
My friend's Social Security check was put on a 48-hour hold yesterday by a Wells Fargo computer when she tried to deposit it. The computer system found it to fit a profile of questionable checks. Has anyone else experienced this?
As Morty Seinfeld would say, "I don't like the sound of that".
Probably because everyone knows they are rubber.
The bank gets a two or three day float. Multiply that by millions of checks and it gets to be a little money maker for the bank.
The banks get 48-72 hours of free use for their own investment purposes.
The banks get 48-72 hours of free use for their own investment purposes.
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I was just talking on the phone with a friend who is retired military, his bank (Key Bank) has a hold on his direct deposited military retirement that was deposited yesterday until January 3rd.
Makes me wonder about Celente’s prediction of a Bank Holiday in early 2012.
I wouldn’t trust Wells Fargo.
What if your friend wanted to cash it instead of deposit it? Same thing?
They usually receive the money from deposit checks quickly. Every day they “hold” those funds is interest in their pockets. With BOA or another large bank I would guess that they are easily playing with 10s of billions of $ of “free” money everyday.
I don’t trust WF as far as I can spit.
I used to have a consumer account with them.
Never again.
I think in this case Morty’s “MY WALLET’S GONE!” exclamation might be more dead-on.
The way I read FDIC regs, your friend should have access to it the next business day. I am guessing your friend deposited it after 2:00 PM and the bank made him wait what appeared to be an additional day..
We had an interesting event happen last time we went to the bank to deposit a check with a larger sum (over 1K).
We were told that the check had to be routed through the Federal Reserve in order to be cleared, hence the 2 or 3 day hold on it.
I asked to speak to the bank manager and told him I had never heard of this. He told me that it was standard practice and that the Fed was acting as a middleman who has a regulatory role to play in standardizing checks.
I asked him why, if the Fed is a private bank, does it have this role? He didn’t have an answer.
Makes some sense if you think about it, but I still don’t like this. I don’t have an alternative solution except to pay cash.
Thanks for the link.
I agree. Wells Fargo sux. Had a car loan with them not long ago, and we paid it off after a year because they’re a major PITA.
This is a travesty!! Technology has enabled the villians to optimize the screw jobs in all domains. All I ask is for absolute power for one year, that’s all I ask.
Here in NJ, Wells started charging our employees $5 to cash their paychecks if they didn’t have a Wells account (our payroll checks were drawn on a Wells account). I was very surprised that is was legal to do this; our employees are losing $5 of each check due to our choice of banks.
Banks are not allowed to put holds on gov’t checks unless they suspect fraud. If this is happening as bank policy it should be challenged under the Funds Availability Act. Perhaps it was a new teller who doesn’t know her regs.
Yes, that is correct, but for us peons it is called KITEING.
Anybody doing biz with a “big” bank deserves the stupid treatment they get.
Change to a state bank, or a credit union. They have no such ability to ruin your life.
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