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Are Banks required to cash checks drawn on their bank.
my question | 04/08/06 | Mike

Posted on 04/08/2006 4:43:13 PM PDT by wcas

I may be wrong posting this here but I mad a this bank today. My son got his frist pay check today from his frist career Job, Not having a bank account no bank would cash his check, I told him to go to the bank that his pay check was drawn on and they should cash it, this is not a small compay 250 employees. I made sure he had two forms of picture ID, Drivers license and dependent Military ID(They didn't even know what the military ID was)They said they would cash it unless he open an account, Personally I think they have check the check since it is drawn on their bank. anyone Know? He said they were very rude to him! Thanks all sorry if I'm in the wrong place.


TOPICS: Miscellaneous
KEYWORDS: banking; banks; checkcashing; help
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To: wcas
They said they would cash it unless he open an account, Personally I think they have check the check since it is drawn on their bank. anyone Know? He said they were very rude to him!

Something similar happened to me. I got a check from a trucking company, took it to the bank that it was drawn on and they refused to cash it because I had an out-of-state ID.
I simply told them that I would take the check back to the company and tell THEM their check was no good and they would have to come up with $3000+ and that I would be willing to wait while charging them detention time of $125.00 per hour till I got my money.
I got my check cashed.
41 posted on 04/08/2006 8:01:01 PM PDT by Old-Retired-Trucker ("Celibacy is a fruitless effort.")
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To: Wheee The People
I'm curious about is why you logged on to FReeRepublic today, created a new account and asked a banking question????

I'm curious why you are wasting bandwidth by opening this thread and venting your dissatisfaction with the post of a new guy? This ain't DU.

42 posted on 04/08/2006 9:36:33 PM PDT by Mike Darancette (In the Land of the Blind the one-eyed man is king.)
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To: wcas

They must cash it and they can not charge a fee. They are required to honor their customer's instrumnet, which is the full amount written on the check to the payee.


43 posted on 04/08/2006 9:45:58 PM PDT by spunkets
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To: rockabyebaby
"Banks are not required to cash checks period regardless of what bank the check is drawn from"

The check is payable on demand during business hours. Otherwise the check's no damn good. That the fed banking rules.

44 posted on 04/08/2006 9:53:53 PM PDT by spunkets
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To: wcas

45 posted on 04/08/2006 9:55:57 PM PDT by JRios1968 (E=mc3...the origin of "friends don't let friends derive drunk.")
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To: wcas
Real simple solution...

First, open an account. Next, cash the check, then close the account. Either that or go back to the employer and tell them you want paid in cash as their checks are no good.

The bank was just being difficult. They should have cashed the check. It was not a favor they would have been doing for your son. It was a service they would have been providing to their client that wrote the check to your son.

Call the local news channel that has a consumer news guy. They should have some fun with this one.

Final suggestion, give me the name of the bank and their phone number. I'll call them and get it straightened out for you.

46 posted on 04/08/2006 10:02:58 PM PDT by BJungNan
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To: big'ol_freeper
Wow...you join FR today just to ask that question. I smell ozone. Here kitty kitty.

They may have been reading FR for a long time as a lurker, found that FReepers give good advise, had this situation come up and it prompted them to join in. Then comes along someone unfairly unleashing their cats. Not good form on your part.

47 posted on 04/08/2006 10:06:44 PM PDT by BJungNan
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To: snowsislander

You get an award for the most helpful and informative post of the week for sure. Great FReeper Form! Way to Go!


48 posted on 04/08/2006 10:08:48 PM PDT by BJungNan
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To: William Terrell
What happened again? You brought the check writer to the bank and they still said no?

They must have had some reason. What it was I will never know. Did they tell you anything?

49 posted on 04/08/2006 11:25:01 PM PDT by maui_hawaii
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To: spunkets
I don't know where you got that idea.

Lets say client A has 100,000 in his checking account and he writes you a check for $500.

If you come into the bank and ask to cash it, the bank is under no obligation to cash it for you.

50 posted on 04/08/2006 11:30:51 PM PDT by maui_hawaii
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To: spunkets

Yup. And the UCC codified in all states covers negotiable instruments. Banks have a fiduciary obligation.

You could write a check on a coconut and they would have to honor it.

It is the INTENT of the payer.


51 posted on 04/08/2006 11:38:30 PM PDT by djf (Bedtime story: Once upon a time, they snuck on the boat and threw the tea over. In a land far away..)
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To: Lurker; William Terrell
'entered for collection'

That won't do a thing to help anyone cash a check.

What it means is the item is sent from bank to bank for special collections.

Typically the person requesting the service pays a $20 or so fee.

Lets say someone wrote you a hot check. You deposited it in your bank and it bounced. After the item has been returned to you, you can place it in collections at YOUR bank.

They will then send it the bank that it is drawn on and as soon as the account has funds available, there is an immediate hold placed thus paying the item and you get your money, which is credited to where the deposit is supposed to go.

Collections is also used for international items.

Say you deposit a check written off the Bank of Thailand and its denominated in Thai Bhat...you typically send those items for collection (and pay the fee) and the bank can swap it out and make it US dollars and collect the money from Thailand.

52 posted on 04/08/2006 11:40:29 PM PDT by maui_hawaii
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To: BJungNan

It would be great if he were correct. Unfortunately not.


53 posted on 04/08/2006 11:41:13 PM PDT by maui_hawaii
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To: wcas

"Are Banks required to cash checks drawn on their bank."

Only if presented by an illegal alien.


54 posted on 04/08/2006 11:43:20 PM PDT by CowboyJay (Rough Riders! Tancredo '08)
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To: djf
What UCC are you talking about?
55 posted on 04/08/2006 11:46:00 PM PDT by maui_hawaii
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To: wcas
My son got his frist pay check today from his frist career Job

So let Frist cash the check.


56 posted on 04/08/2006 11:56:15 PM PDT by Larry Lucido
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To: maui_hawaii
There is another angle here: the poster is talking about a PAYCHECK. Depending on the state laws, there may be someone breaking the law here, but not necessarily the bank. Or maybe the bank.

In at least one state, at least long ago when I had to worry about such things, NY state has a law about paychecks. (Or did)

An employer must pay an employee in CASH, or a check that is readily converted to cash. In other words, if the employee is paid with a check and the bank it is drawn on refuses to cash it to the employee at face value, the employer is in deep shnit. They could potentially find themselves being required to pay employees in CASH.

IANAL. I could be full of crap now, as times do change.

However it seems absurd that a bank charges the payee to cash a check drawn on that bank. The way I see it, if a bank has a policy of not cashing checks DRAWN ON THAT BANK, then the banks checks are of questionable value and ergo: the bank is of questionable value. I agree with what another post here said...use a credit union.
57 posted on 04/09/2006 12:12:51 AM PDT by Nik Naym (Ted Kennedy's Oldsmobile has killed more people than Dick Cheney's shotgun.)
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To: Nik Naym
Credit Union won't help you in this regard. But I guess it depends on the Credit Union. The vast majority have the same check cashing requirements as a bank does for any non account holder.

BTW It doesn't matter if its a paycheck or not. No one is breaking the law. The bank has the right to charge a fee for the use of their services and to not cash a check for someone if they have reason to not want to.

If the bank says 'we don't cash checks for non account holders' then thats the policy of the bank. You might not like that bank, but thats how it goes.

If they have that policy, paycheck or not, go to your bank and deposit the item.

They might have a million bucks in their account, but the bank can still refuse to cash a check off of it for a non account holder.

58 posted on 04/09/2006 12:22:35 AM PDT by maui_hawaii
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To: maui_hawaii
The employer might be in violation of law, because the employee was in effect not paid.

That was what I was trying to get at. Staying up late, having adult beverages and posting doesn't seem to go together. LOL.
59 posted on 04/09/2006 12:31:59 AM PDT by Nik Naym (Ted Kennedy's Oldsmobile has killed more people than Dick Cheney's shotgun.)
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To: maui_hawaii
"I don't know where you got that idea...If you come into the bank and ask to cash it, the bank is under no obligation to cash it for you.

The bank is obligated to cash the check drawn on that bank to the payee presenting the check during business hours. I got that idea from plenty of experience. The bank's only legitimate action is to pay it, or stamp it NSF to the payee presenting it and his DL. No fees can be charged, no thumbprints required, the payee can be wearing blue jeans, sporting a beard and be all sweaty. That's the rules. Banks can't sit on checks, modify the value of the instrument, or otherwise make demands.

60 posted on 04/09/2006 6:13:55 AM PDT by spunkets
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