Bank's Check Cashing Fee

[Liv]

wachovia_five_dollar_fee.jpg (22.21 KiB) Viewed 15828 times

Dear Wachovia,

I had the chance to visit one of your locations a few weeks back to cash a check. Upon arriving, and expecting the friendly service, you so graciously advertise on television, I presented my check for cashing. A $100.00 check, I was paid for web design work. Normally I would have taken the check to my credit union, but since it was late in the day, and there was a Wachovia a few blocks from my house, and of course this was a Wachovia issued check, I figured I'd drop by your little neck of the woods and cash it.

I've been to Bank of America before. I was aware of their shady little scheme of charging $5, but I didn't figure Wachovia, a financial institution that prides itself on customer service would do it. Would it? I was wrong. I even did a little name dropping, assuming my business relationship of the company I work for would buy me some leeway. I cut Wachovia breaks all day long on my job, but you can't even cash your own damn check for face value?

What the hell is wrong with this world? You charged me 5% fee to get my money that you owe me?

I was already aware that someone by now had found this check cashing fee illegal. My assumption was if National City, Wells Fargo, & Bank of America all were sued and found liable for this fee, then certainly they'd have discontinued it elsewhere? Right. Nope. Apparently Wachovia and the rest of these corrupt banks all continue the five dollar check cashing fee everywhere else.

So guess what Wachovia? I will personally tell everyone I know to stay away from your company, I'll never ever consider you for a home loan, car loan, or business loan. Nor will I for any of these other companies. It's as if the whole system is one blood sucking leech, and the people that are getting bled to death are people like me: someone just trying to cash a check and bring home dinner.

[BecauseHeLives]

If you read the article you linked at the bottom it says the bank still charges a $5 fee for cashing a non-customer's check.

I know. It sucks. That's why I do business with credit unions and NOT banks. Banks just suck.

[Liv]

I missed that last line... but did catch this on rip-off report...

I am no attorney but as I understand it, a check is a written order to a bank to pay the amount specified from funds on deposit. As a Wachovia customer, you and Wachovia have agreed that Wachovia will pay out funds as requested in written checks.

According to the Uniform Commercial Code that governs the issuance and negotiation of negotiable instruments, which checks are:
1. The promise or order to pay must be unconditional;
2. The payment must be in a specific sum of money, although interest may be added to the sum;
3. The payment must be made on demand or at a definite time;
4. The instrument must be payable to bearer or to order.
5. The instrument does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money.

In my opinion, Wachovia is altering conditions 3, 4 and 5 with its practices. My experience was as follows. A $120 check was written out to me on a Wachovia account. I walked to the bank and was told that I needed two 2 forms of ID, would have to be fingerprinted and would be charged $5 if I did not have a Wachovia account.
I pointed out that it was a Wachovia check. The teller responded that the account holder could request that check cashing fees be waived (another topic obviously). I agreed to pay the fee, was fingerprinted, IDd, and handed $115. I was then handed a 'Funds Availability' receipt with the 'Other' box check and '$5 Check Cashing Fee' handwritten.
I later called the payee and advised them to change banks.

[BecauseHeLives]

One has to wonder.... check cashing places in NC are very heavily monitored and regulated. In fact most check cashing businesses had to move out of state because of the current regulations.

Two questions:

1) Wouldn't these banks fall under those same types of regulations since they are profiting from cashing checks
2) I wonder how many banking lobbiers were used to put those stringent regulations into place for the check cashing businesses.

The banks didn't seem to start charging fees until the check cashing busineeses were forced to shut down.

[Liv]

I mean, I have no problem taking my Credit Union check to Wachovia, or B.O.A. etc.... and paying $5.00 to cash a check... that makes sense....

But a check, issued from their institution..... should not require a fee. It's a document of IOU... If you can legally charge this fee, then by all means you can do the same for cash....

Just wait for the day you go to Taco Bell, and the charge a cash taking fee of 5%...

Crap like this, really gets me upset.

You can have your fence around Mexico... just stop charging me out my butt for everything America.

[A Person]

Don't pay it then. Take the check to your bank and deposit it there. By paying, no matter what you say to the clerk or on-line, you are endorsing their practice.

I agree it's outrageous, I refuse to use private label ABMs for the same reason. When I need cash I get cash-back from a store - they want your business

[Sanjuro]

Bank fees are absolutely outrageous. What pisses me off is the wait one has to endure for deposited checks. How is it, in this day of instant information, that a bank cant seem to hit a button and see if funds are available.. oh wait they can, because they sure do clear checks immediately without issue.

[Serendipitous]

I spent 5 years in retail banking. My last position was in branch operations (creating policies and procedure). I would sit in meetings, thinking like a consumer and get more and more annoyed each time we discussed "fee income." Sometimes, charging a fee was passing along whatever we were being charged by our vendors for specific services; but other times it was all about taking advantage of an opportunity, such as "If they're not a customer, charge them $____." Charging a non-customer for cashing an on-us check was justified by the "rule" that she is not our customer, she is taking time away from our customers... Yep, what a bunch o' crap!

[Liv]

Don't pay it then. Take the check to your bank and deposit it there. By paying, no matter what you say to the clerk or on-line, you are endorsing their practice.

I generally do, but in this occurrence, my Credit union would have been closed, and (embarrassingly) I had no funds in my account until my direct deposit went through that night.... The client gave me the check, and figured I'd show up with dinner like a warrior against the beast surprising my family.... with the huge bounty.

I also wasn't aware of Wachoiva's policy prior to going. I knew Bank of America had one, but not Wachovia. I figured it had either been made illegal, or based on Wachovia's reputation.... they'd be the least likely to institute the charge. I also figured my employment with the financial company that provides their supplies would be a last resort deal breaker whereby manager override could be employed.

But... I still left minus 5 Dollars.

[Sanjuro]

, and figured I'd show up with dinner like a warrior against the beast surprising my family.... with the huge bounty.

Not sure why, but I got a visual after reading this that made me laugh outloud.

[Questioner]

If you read the article you linked at the bottom it says the bank still charges a $5 fee for cashing a non-customer's check.

I know. It sucks. That's why I do business with credit unions and NOT banks. Banks just suck.

What I don't understand is why the court hasn't held the California bank in contempt if it continues to do what the court has held to be illegal. Weird!

[Billy The Blogging Poet]

Yes I am so glad I too have a credit union account and loath the day I should have to walk in a bank again.

[Liv]

As someone who deals with people that work at banks, I must say it takes a certain breed of dog to work in these climates. The young one seem to handle things well, but by the time the teller hits 35ish, something goes horribly wrong. It's also required that every bank have at least three people named "Barbara"...

[Scott]

I bank with USAA Federal Savings Bank out of San Antonio, TX. It started as car insurance for military members, but the bank is now available to anyone. Refund ATM fees up to $1.50, kickback for using debit card as credit card, scan a check to deposit from home/work and funds are available immediately, great website, as well as phone service. Interest bearing checking account with no minimum balance. Also, consistently a high ranked MasterCard. I maintain a credit union account for some minor things, but I would not consider using one of our local banks.

[BecauseHeLives]

I bank with USAA Federal Savings Bank out of San Antonio, TX. It started as car insurance for military members, but the bank is now available to anyone. Refund ATM fees up to $1.50, kickback for using debit card as credit card, scan a check to deposit from home/work and funds are available immediately, great website, as well as phone service. Interest bearing checking account with no minimum balance. Also, consistently a high ranked MasterCard. I maintain a credit union account for some minor things, but I would not consider using one of our local banks.

Scanning checks for deposit from the comfort of your home is very cool. I hate having to go to the credit union just to deposit a small check here and there. Way cool. That would sell me on the bank right there.

[A Person]

It does sound cool but you've got to wonder at the opportunity for fraud. What happens if someone scans one check and photoshops it into 10 checks. Or takes one check and deposits it to two bank accounts?

[BecauseHeLives]

It does sound cool but you've got to wonder at the opportunity for fraud.

This type of transaction might be open to the 10-day rule most banks have for larger checks. This type of transaction could even save the bank money. I can see it now... go to the bank's secured website and click on a "Deposit" button. Enter the check information and upload a scan of the check as an attachment. All automated and takes the teller out of the equation. It seems pretty plausable to me.

What happens if someone scans one check and photoshops it into 10 checks. Or takes one check and deposits it to two bank accounts?

There is a certain degree of fraud goinf on in every type of transaction. I don't see this transaction as being a particularly huge fraud issue.

[24VCMB]

This is absolutely unacceptable. I was completely unaware of this practice as I generally just deposit my checks to my account. Today, as my bank was closed as of three o'clock, I decided to go to CITIZEN'S BANK the issuing bank. I expected to have to show ID but telling me I had to pay five dollars for the privilege of having a bank cash a check drawn from their bank is highway robbery and I won't do it. It's a bunch of bullshit! Obviously, it's not the five dollars. If I went to a middle-man check cashing establishment, I would expect them to charge me a fee as they have to get paid for their services but the bank should not be allowed to charge fees in this way. I refuse to "bend over" for this type of crap.

When I got home I decided to look on line and see if I could find out more about this practice of charging non-customers for cashing checks drawn on their bank. Apparently, this is a pretty wide spread practice judging by the amount of information and the number of banks involved as well as the number of pissed off people on the many pages I've looked at. This is retarded, unethical, and just another example of corporate greed. I suppose I shouldn't be surprised after the wonderful vacation the corporate top-dogs got to take on our tax money via the government bail out recently.

In my opinion, the people making these types of decisions should be jailed. This is extortion and should not be tolerated. I'm an freelancer/independent contractor and I frequently accept contracts from staffing companies if the opportunity is right. Obviously, I can continue to deposit the checks I receive into my bank account and wait for them to clear - which is what I typically do anyways. However, I'd like to think that, if I suddenly had the need to cash it at the source, I wouldn't have to open up a new account with a new bank every time I take a new contract with another headhunter.

Everyone who is able to should absolutely refuse to pay this under any circumstances and we should all be actively trying to have this practice outlawed. I find it hard to believe (and not so hard to believe) that it isn't already.

[Liv]

That's a good point about the clearing of the check. Again it comes down to the fact I don't think that cashing is really a term that makes confusing sense here. A check is a unit of delivery for value just as cash is. It is expected that upon remittance to it's originating bank that it should be payable to the face value IMHO.

What happens when Wal Mart starts charging a $5 acceptance fee for taking U.S money?

Perhaps we employees/self-contractors etc should start demanding from our employers/clients a $5 fee for paying us?

Ohhhh this irritates me... and how long has it been?

[Serendipitous]

Related to bank fees in general, I forgot about a draft that came out last week (car insurance) and while I'm glad the bank paid it and my account went into a negative balance for it, they also charged the fee for doing so (which is same amount as fee for returning it for insufficient funds).

I just don't understand how they justify it when in this day and age, this is a mostly automated process as opposed to having the clerk at the branch who gets a report and sits there and determines what to pay and what to send back. (I did have that in my job duties once upon a time). I mean, really, WHAT is the customer paying for when they charge those fees?

[Liv]

Maybe after we get socialized health care we can get socialized bank care?

I'm lucky in that I do sort of have it already... I'm very thankful..... but you have to be a former state employee to get what I have.

For example I overdrafted the checking last week despite having plenty in the savings. Cost? .50 cents.

[teller]

I am a teller at a bank that charges a fee for non customers to cash their checks. I DO NOT agree with this practice and I WOULDNT pay a fee to cash a check at another bank. But it is not the tellers fault they didnt come up with this plan and they dont deserve to get yelled at. I understand that you are frustrated but be mad at the bank not the teller please. they dont agree with it either but they cant tell u that!

[Mr. Idea]

What if you had a check for only $3.00 dollars what would the bank do? Would they hold you hostage til you paid there 2 dollar ransom. RANSOM that sounds like a proper term!!! Ithink i will make avideo of someone trying to cash a 3 dollar check and post it on you tube and see what happens. banks have there fees i have youtube!!!!

[Guest]

All you people griping of a $5 fee obviously do not understand that banks are in business to be profitable. The fee is a disincentive to non-paying-customers utilizing the banks services (which cost a lot of money to provide) for free. It is very expensive to monitor/transport/secure cash. You people are thinking of only yourself cashing a $100 check. Well, the reality is that easily happens 20 times a day per branch. If the banks didn't provide a disincentive then people would regularly do this and the bank would have a difficult time figuring out how much money to have on hand at their branches and would also have to pay to have a larger amount on hand only to give it away for free. The bottom line... if you owned a business and had mulitple people always trying to use your service for free- thus costing you money, you'd change the way you did business and figure out a way to charge them.

[Guest]

most banks only charge the fee for over 100$