The problem with a permanent stop payment is that it places the responsibility on the bank to watch out for that specific check forever, or until their bank policies determine the check has expired. No, we don't think it should cost a consumer over $5 a month to ask the bank to catch the check, but is anyone really surprised that the fee would be set at a level that generates a profit?

Unfortunately—and this is what concerned Jennifer too—experienced scammers may also be aware of the six month window. Attorney Mary Beth Guard tells Bankrate:

"Say you wrote a check for a vacation scam. The scammers know you'll put a stop-payment on it, but they also know that unless there's a special agreement with your bank the order will be valid for only six months. They may wait until after six months to cash the check. If your checkbook is stolen it may be best to close the account and open a new one."

Which brings us to your other option. Jennifer says that she in fact "advised [my] fiance to close the account." We agree, but not because his current bank is behaving any worse than other banks. Depending on the amount of the check and your bank's check expiration policies, it may actually be a more cost effective solution.

Before you place a stop payment:

1. Determine the details of your bank's check expiration policy (or if it even has one);
2. Find out the stop payment fee;
3. Estimate the relative cost (in overall trouble as well as fees) of relocating your checking account to another bank, or in switching your account to a new number at the same bank.

Once you can figure out how many six month renewals it will take to block the check until it expires, you'll know the true cost of blocking that check, and you can determine whether getting a new account will be the cheaper choice.

You should also know that an oral stop payment order only lasts 14 days—you'll need to go into the bank and place a written order for the 6 month policy to kick in.

"Stopping a check payment is expensive" [Bankrate.com]
(Photo: Getty)

The credit unions' products vary, but generally they are loans of $300 to $1,000 with an annual percentage rate of up to 18 percent. Unlike payday loans, in which borrowers sign over part of their next paycheck for the cash advance, the credit unions' new products have longer terms, from thirty days to a year.

Vann, 43 and a former clerical worker who is pursuing a career in TV production, got a $500 six-month loan from the Treasury's credit union in January, at a 16 percent annual percentage rate. The money cleared her payday debt and put her on her feet. Now she has a checking account with the credit union.

"Credit unions were created to offer credit to people with modest means," said Leslie Parrish, a senior researcher at the Center for Responsible Lending. "So, historically, it's very much in keeping with their mission."

It's like stamping out weeds and watching adorable kittens grow in their place.

Credit Unions Slowly Fill Void As Payday Lenders Leave D.C. [The Washington Post]
PREVIOUSLY: Payday Loans Die In DC
RELATED: How To Find And Join A Credit Union
(Photo: Dr. Hemmert)

Meet Dennis Hallet and his wife, Sandra. "In thirty years I've never crossed up bills. I managed to send Dell my AT&T check and I sent AT&T my Dell check," Sandra told CBS 13.

Dell cashed the check made out to AT&T and applied the $235.00 toward Sandra's balance. AT&T cashed the $1138.33 check made out to Dell and applied the entire thing to the Hallet's phone bill. This left them with a credit of $903.33.

Meanwhile, interest was piling up on her Dell account. When she called AT&T to see about getting her money back, they told her it was her fault they cashed a check made out to another company and told her they'd give her money back in two months.

CBS13 called and got AT&T to apologize and refund part of the money in 7 days— with July's bill deducted. When asked why they cashed a check made out to another company, AT&T had no answer, so if you're mailing a couple bills at the same time — make sure you put the checks in the correct envelopes and save yourself a huge headache.

Call Kurtis: Check Switcharoo [CBS13]
(Photo: jetsetpress )

I just received a strange UPS package this morning, a check for $4,500

It's obviously a scam but I was wondering if I could get some expert advice on how to handle the situation in the best and most entertaining way possible.

I believe this got started when I posted a "roommate needed" ad on Craigslist. One girl replied right away, saying that she was coming here from another country. She also mentioned that she was having many things shipped to her here... like a BWM?!?!?

I had already given here the address and she said that her Dad was sending a money order. I had nothing bad bad feelings about the whole thing so I told her the place was already taken. A couple of days ago she emailed saying that she needed my help. She needed me to cash the check that her Dad had already sent and that I could keep 10% of it as a transaction fee.

So I'm guessing that the Craigslist ad is how these people got my address.

Should I just not respond? String them along?

Thanks in advance,

Sean

There's really no point in stringing them along — unless you're secretly Batman or something. You're not, right? Anyway, one option is to collect all the information you can about these folks — emails they've sent, the package, all that stuff, and file a police report. It may sound pointless, but Reader Chris managed to get his Craigslist scammer arrested by filing a police report. For all you know, these people have been trying this all over town and you may have the missing puzzle piece. Or they could be in Nigeria.

You can also contact your local FBI field office and ask them if they're interested in seeing the check. If you'd fallen for the scam, we'd advise that you report it to the FBI's internet crime complaint center. Thankfully, you didn't!

Sean sends an update:

The scammer contacted me again and asked if I got the check. She wants me to cash it and send the money to a person in Oklahoma who she says is a car dealer at a place where she wants to buy a car. Also that I need to send the money through Western Union. For clarification, the check was sent from a Florida address and has contact name, address and phone number.

I called the JP Morgan Chase Bank to tell them that I have a lot of contact information from someone who made an obvious forgery of their check. Chase basically said "yes, we're aware of the problem". I asked if they wanted any of the information, like the name and address in Florida that it was sent from. The name & address of who it's supposed to go to? They said, not really.

I called the local FBI and they said they get lots of this and had me go to IC3.gov to report the information. I filed the report but I'm not counting on getting any response.

Well, Sean, you did everything that you could do.

1. Don't write checks.

Here's the reason: If I write a check at Walgreens or CVS, I'm leaving that check behind with the clerk. And on that check is my name, address, phone number, my bank's name and address, my bank account number, routing number, and my signature. And if that store clerk writes down my driver's license on the front of the check, in nine states—including the one I live in—that's my Social Security number, too. Then, next to it he writes my date of birth.

"Well, I don't get that check back. So I don't know if CVS destroyed the check, if they put it in a warehouse for seven days or 30 days. What I do know is that anyone who sees the front of that check has more than enough information to draft on my bank account.

2. Make sure the IRS cashed your tax check. Crafty thieves look for envelopes addressed to the IRS and, like resourceful squirrels, rip out the delicious fruit inside and claw off the IRS' name and replace it with their own.

3. Don't put checks in your mailbox. "That's like putting the flag up [for fraudsters] to come get my mail." Entrust your check-filled envelopes to the post office.

4. Treat your checkbook like cash. Leaving a checkbook exposed in your car is like hanging a sign on your windows reading "Smash Me!"

5. Balance your checkbook, or at least keep an eye on your online bank statement:

About 51 percent of Americans do not reconcile their bank statement—they don't even open it. Banks love this because we have a law in the United States called Article 3, Section 406 of the Uniform Commercial Code. It says that you have 30 days from receipt of your statement to notify the bank of any discrepancies that may appear on your statement. If you don't do that, then the bank has no liability to pay you.

Our online banking setup keeps us from hunting down the checkbook lurking somewhere in our apartment. Do people still use checks?

5 Ways to Avoid Being a Check-Fraud Victim [U.S. News & World Report]

The resulting news story has what may be the greatest sentence ever written:

The personal check was not made out to Mr. Fuller and when the bank contacted the check owner, the woman said she did not write a check for $360 billion.

Really? She didn't? You'll be shocked to hear that Mr. Fuller was also charged with unlawful carrying of a weapon and possession of marijuana. When asked why he was tying to cash a check for such a large amount, Fuller told police that the check "was given to him by his girlfriend’s mother to start a record business." No word on whether Mr. Fuller and his girlfriend are still dating.

Man accused of trying to cash check for $360,000,000,000 [Dallas Morning News]

My husband and I recently received a letter from Charles Schwab about our account. It refers to a check they sent us last year for the grand total of $.01. Yes, that's one cent. A single penny. I never cashed the check, having found it funny that they wasted a stamp to send us such a tiny amount. I tacked it up on the fridge for a few months to amuse myself, and eventually tossed it.

Well, Charles Schwab noticed that I never cashed the check, and wasted yet another stamp to let us know the check had expired. Thanks Charles Schwab!

Kristina writes,

I am so happy with the customer service I just received from Bank of America that I wanted to write in and share.

I went on a Caribbean cruise at the end of February and had written a post-dated check to my roommate to cover my rent while I was gone (I had enough funds in my savings to cover the check, but I wanted to continue to earn interest. I was unaware that post-dated checks can be cashed before the date of the check - that was my error). Unfortunately, my roommate forgot (immediately) that I had asked her to wait to cash it until Feb. 29 (my payday) and cashed it on Feb. 22.

I had little avenue for communications while on my cruise, so I did not notice that my checking account was overdrafted until Feb. 29, and I had been assessed a total of $345 in overdraft fees. On the BOA website, it says that when an overdraft occurs, BOA "will send a notice informing you: The item was paid; Your account is overdrawn; You've been charged an overdraft fee; etc." Since I am signed up for e-statements, I assumed that meant these notices would be sent via e-mail. It turns out they are sent by postal mail, but that is not clear on the website.

At any rate, I called BOA Executive Customer Relations at (704)386-5687 and spoke with Matt Gross. After briefly explaining the circumstances of my situation, he refunded $325 to my account (we agreed that the first $20 fee should stand, as it was my mistake re: being able to cash post-dated checks, but that since that should have triggered a notice which would cause me to transfer funds from savings to checking, the rest of the fees should be refunded). This process was quick and easy, and Matt was extremely pleasant and helpful. A mistake that could have cost me $345 has now only cost me $20 and has ensured that I remain a loyal BOA customer.

I hope that you share this with the community so everyone can see that some banks are not trying to nickel and dime us to death!

(Photo: Getty)

My wife and I have our own separate bank accounts and a center, shared account, all with PNC. We can move money from each account to the other freely. Our employer is small enough that direct deposit is not offered, so we deposit our paychecks at our local branch every other Saturday. As we keep a large(ish) balance in the center account, we are able to deposit both of our checks as cash (basically, cash them then immediately deposit them, only the bank does it all). The funds are available immediately, and the transaction is recorded first thing Monday morning.

When we deposited our checks this Saturday, the teller was new and slow. He processed my wife's deposit and then looked to have processed mine. He handed me a receipt that I have since lost that showed that my check had been processed. When I looked on Monday, my check had not shown up. When I looked again this morning, my check still had not shown. My wife's showed normally.

I contacted the branch this afternoon, and the woman who answered was polite but insistent that she could do nothing without the receipt. I came home and searched all of hell and half of Georgia for the receipt, but to no avail. We called corporate customer service, which has apparently been outsourced, and the person on the phone was again insistent that we have the receipt. They have put through a request to find the physical check and find out what happened to it.

Here is my fear: if they find the check and it shows that it was processed as cash, what is stopping them from just saying they handed me the cash? I'm not a banker so I don't know the process. Does my deposit slip stay with the check? In a situation such as mine, where I've endorsed the check with a signature so it may be deposited as cash, what are the safeguards in place to keep a teller from faking the deposit and receipt, pocketing the cash and concealing/destroying the deposit slip?

I realize I should have held on to the receipt, but can something like this really be held up by lack of a scrip of paper?

If the check has been cashed, you should treat the issue as a potential crime and report it as such immediately to the bank manager, and then to the executive level; there should be a video record of your transaction to review whether or not you were handed cash. If you need to reach high-level members of PNC, try searching EDGAR. We had to drill down several layers to reach this sample phone number, and we can't confirm that this person is even affiliated with your bank, but it's an example of the kind of data you can find if you dig deeply enough.

Readers, any other ideas? It seems a little early right now to call your lawyer, but if your employer confirms the check was processed, you might want to contact one for professional advice.

Gawker Media polls require Javascript; if you're viewing this in an RSS reader, click through to view in your Javascript-enabled web browser.

I called them right away - the voicemail said they were closed but I kept hitting "0" til I got a human. They originally told me that it would take 3-4 business days to correct the error because the problem is with another bank. That's a long time to not have MY money because of THEIR error, I said. Like anyone else, I have bills coming due in the next 3-4 business days, I can't just tell them to wait! I got my money back but I had to ask for a supervisor and escalate it to their "executive resolution" department.

I logged back into their website a few hours later to make sure my $$ is still there and this message is on their welcome screen:

>>>
Special Notice Posted : Thu, Feb 7, 2008

Due to an issue affecting several banks, some members may see duplicate entries for posted checks. USAA is diligently working to correct the problem. We will refund any incorrect overdraft fees as a result of this issue. We apologize for any inconvenience.
<<<

If I hadn't logged in this morning, I would have never known that this happened. So if you have a USAA Bank account, you're going to want to check your bank balance, and if its wrong, escalate that customer service call pronto. DON'T take "3-4 business days" for an answer!

She had been garnished by a credit card company, courtesy of one of those cavernous collections law firms with one attorney (if that) and about 100 paralegals. The firm had saved her bank account information from when she paid off another credit card company that also was a client of the firm. She did not know the second credit card company even had a judgment against her, and it took her a week to find out who garnished her because her bank wouldn't talk, and this was done without notice. This is all legal by the way.....

Eventually at the firm's suggestion, she began faxing paperwork to the credit card company's lawyers to "prove" the funds were SSI and SSA. They'd receive the fax, come up with some reason that the paperwork was insufficient, a page missing, a smudged entry, but never call back to tell her things were amiss. She'd finally follow up, and then she'd hear the next excuse. This went on for two more exasperating weeks. Finally, after much prodding (she was sure the account would be voluntarily released any day now), she sought legal counsel from a legal aid office, which seemed a bit overworked (obviously), and frankly a little peeved that she believed the credit card company's lawyers were ever gong to release this. She was dressed down for being optimistic and trusting.

Five weeks after the garnishment, she finally got access to her "exempt" funds, having skipped needed medication, rent payments, insurance payments, and who knows what else. She would NEVER have gotten an attorney at all if I had not begged her to do so. She does not trust lawyers and had no idea how to find one even if she did want one. And, she had family to lend her money. Most people in this position don't. The point is that things are worse than this for most people in her shoes, and many poorer people do not feel they have access to a lawyer. They are right in many cases. That is why it makes no sense to make the consumer prove the garnished funds are not SSI or SSA.

The five federal agencies responsible for regulating banks have drawn up nine best practices for banks to follow:

• Promptly notify a consumer when a financial institution receives a garnishment order and places a freeze on the consumer's account;
• Provide the consumer with information about what types of federal benefit funds are exempt, including SSA and VA benefits, in order to aid the consumer in asserting Federal protections;
• Promptly determine, as feasible, if an account contains only exempt federal benefit funds such as SSA or VA benefits;
• Notify the creditor, collection agent, or relevant state court that the account contains exempt funds in cases in which the financial institution is aware that the account contains exempt funds;
• If state law or the court order will permit a freeze not to be imposed if the account is determined to contain only exempt federal benefit funds, act accordingly if that determination is made;
• Minimize the cost to a consumer when the consumer's account containing exempt federal benefit funds is frozen, such as by refraining from imposing overdraft, NSF, or similar fees while the account is frozen or refunding such fees when the freeze has been lifted;
• Allow the consumer access to a portion of the account equivalent to the documented amount of exempt federal benefit funds as soon as the financial institution determines that none of the exceptions to the federal protections against garnishment of exempt federal benefit funds are triggered by the garnishment order;
• Offer consumers segregated accounts that contain only federal benefit funds without commingling of other funds; and
• Lift the freeze on an account as soon as permissible under state law.
• 
  

Think Public Benefits are Exempt from Execution? Think Again [Credit Slips]
(Photo: O Pish Posh)

Here's how it works. Someone sends you a check. You think, "Hot Damn, I have a check." You cash the check. You do not notice that the check says, "by cashing this check you agree to enroll in some sort of program that costs hundreds of dollars a year."

You lose hundreds of dollars a year.

It's a fairly common, but misleading bit of marketing. We hate it. Here's Aaron's letter:

I don't know if you guys have already reported on this but I couldn't find anything searching the archives and this just infuriated me. So I have a chase credit card I use as my backup card. I got a standard looking rebate check mail from them the other day. (The one where you rip off the sides and there is a check inside) Inside was a check for $9.25. I found this weird because I hadn't had any transactions with them for some time. I went looking for the catch and had to find it in very very small print under the amount. Apparently, by cashing this check I was signing up for some program called Just for Me. After mining deep into the writing on the back I found out that by "signing up for Just For Me" I was agreeing to a 59.99 semiannual charge for account membership. Also on the back the largest writing says 2% Back on Your Credit Card Purchases ... almost implying that this is the reason the check was cut. There's lots of other junk in this offer as well but the thing that struck me was how authentic this check looked and how easy it would be for someone to cash this thinking it was a rebate check. I'm canceling my account today, but I wanted to let you guys know about this scam. It baffles my mind that this is legal. Anyway, enjoy! Thanks, Aaron

About 2 months ago, I deposited a nice, fat commission check into my account via the B of A branch ATM. All seemed well, and I noted that the deposit showed up online at my B of A account.
24 hours later, the entire check had been reversed back out of my account, being noted as 'non-negotiable, deposit correction'.

I

went to the bank branch once I realized what happened, and the bank manager told me there was nothing that she could do, was unable to find out why it was kicked out, and that I'd have to wait for the check originals to be mailed back to me. I asked why I couldn't just get a scanned copy from the bank and she said they did not have scanned copies.

I ended up talking to different (new) employee, and he managed to get through to the right department and find out what the heck happened. It showed that the MiCR line was invalid. He magically was able to get a copy of the scanned check (wait... I thought they did not scan copies?) which I presented to the counter clerk, who verified that it was indeed good. I also verified the check with the issuing bank and got a letter showing that the check and MiCR line was good. I showed this to the manager, and she informed me that she still needed the original before she could do anything, and I'd have it in 3-5 business days.

Well, almost a solid month later, (and now FIFTEEN overdraft fees, and multiple desperate trips to the bank, and calls to customer service asking for help) still no originals in the mail. I asked what we'd do if the copy never showed up at all, and she kept putting me off, and was horrible, rude, and curt. I gave up on her, went to another branch armed with all of my information and check copies, and was able to find a nice gentleman who was willing to help. Of course by that time I'd had my company cut me a replacement check and opened a new account at a different bank. The helpful guy did get me a counter credit for the overdraft fees, but they would not reverse them (so it still looks like it was my fault).
I did get the originals back, and surprise! It looked exactly like the original (as copies are meant to do). Nothing was wrong with the check.

I've closed the B of A account after 15 years.
Crazily enough, my fiancé (different last name, no linked accounts, no way for the bank to associate us) deposited two smaller checks into the ATM about 2 weeks ago. (I warned him!) And don't you know, they kicked his out as well. This time, it's because the checks were made out to "Jim Smith" instead of "James Smith". Never mind that Jim has had an account with B of A for 10 years and has deposited numerous checks written out to "Jim Smith" with no trouble.

And guess what? The bank manager (different branch) told him that they do not scan checks that come through the ATM. (LIES!) He had to wait for the originals. His came faster than mine (but not fast enough to alleviate frustration and time wasted going to the bank several times), and he had the overdraft fees that were incurred as a result reversed- but not without resistance. They wanted to give him a counter credit as well. On top of that, when he insisted the overdrafts be reversed instead of credited, the bank manager went back in his account and noted that, 'well, I see you had an overdraft fee here in September, as well...' with the implication that Jim was just trying to get overdraft fees reversed for the hell of it, as opposed to their bank error.

Jim has closed his account as well.
I suppose I could understand their complete lack of assistance if either of us had a history of trying to pass fraudulent checks, or if we were new account holders, but we were both long-term account holders with no previous issues.

Way to go, Bank of America!!

Keep up the good fight, Consumerist gang!

Warmly,
Stacy C

(Photo:Bob Reck)

[FakeChecks.org via Red Tape Chronicles]

Check fraud getting high tech [Seattle Post-Intelligencer]

• A company you've done business with partners with a company that offers some sort of service. Life insurance. Coupons. Whatever.
• The company you've done business with solicits your enrollment in the service by sending you a check that, if cashed, automatically enrolls you.
• After the "risk-free" month (or whatever), you are charged for the service via whatever credit card they company has on file for you (or whatever). It is possible that you did not understand that by cashing the check you were enrolling in a pay service, but since you agreed to be enrolled by cashing the check, all you can do is nicely ask for a refund.
  

• Never uses debit card
• Rarely writes checks
• Pays for everything with credit card, so his money is never directly at risk
• Subscribes to credit-report monitoring services
• Shreds documents with a micro-cut shredder
• Opts out of creditor's information sharing arrangements

How the Pros Protect Their Identity [WSJ via Consumer World Blog]

"I'm sorry," costs nothing. All those commercials touting Wachovia's reputation for customer service... are those free? No, we didn't think so. Reader Cory writes:

I made a deposit before the cutoff time into a Wachovia branch ATM with one check in it— a check from my Business Account drawn on Wachovia into my personal account, drawn on Wachovia. The Business account had plenty of money to cover the check, the personal account was on fumes, with most bills needing to go out yesterday, 6/4.

They placed a hold on the check.

That's right— they placed a hold on THEIR CHECK from an account with verifiable funds in it. It gets better.

Cory writes:

I've been a Wachovia member since 1999. I incorporated my business 2 years ago and use Wachovia for my business checking as well. On Thurs 5/31, I made a deposit before the cutoff time into a Wachovia branch ATM with one check in it— a check from my Business Account drawn on Wachovia into my personal account, drawn on Wachovia. The Business account had plenty of money to cover the check, the personal account was on fumes, with most bills needing to go out yesterday, 6/4.

They placed a hold on the check.

That's right— they placed a hold on THEIR CHECK from an account with verifiable funds in it. It gets better.

The woman who placed the hold, Ms. T [redacted] placed the hold without notating the account as to why exactly she had done so. She left the office Thursday, and did not return on Friday, nor did she return on Monday. On Saturday, I tried to use my card to buy gas, and it was declined. Looking at the account, although the deposit appeared on the posted balance, the available balance had gone negative. I called customer service, and they explained that a hold had been placed on the account, but they couldn't tell me why, and I'd have to call back on Monday.

On Monday, I called back and waited 30 minutes to get a live individual, as Ms. T was out of the office. The woman handling the call said she couldn't see why the hold had been placed, but eventually, I convinced her to drop the hold and restore the funds. She said she'd do it immediately.

On Monday afternoon, I went to use the card again, and found it had no funds available. I called back, waited again, and they had no record whatsoever of my conversation in the morning, although they immediately removed the hold with almost no question (whereas I had to convince her to do it in the morning)

I continued to try to find out why this happened— the afternoon customer service rep acted as if she was doing me a real favor by releasing the hold without knowing why it was placed on hold, and nobody I spoke to could give me a clear answer.

I went to my branch this morning, and they couldn't tell me anything— they had no record of the hold ever being placed. (I pointed out that my overdraft protection had kicked in over the weekend, so there was SOME record of that.) The local branch, very nice and polite, offered to get Ms. T on the phone, and succeeded where I had failed.

They put me on the phone with her, and she proceeded to explain that the deposit "had not been uploaded in their system so that they could see it" so there was no way to verify "what was in the envelope." But here's the kicker— they refused to acknowledge that it was their fault, and proceeded to tell me that they could hold any deposit from anyone anytime they wanted to, I should go read my terms of service.

At that point, all I wanted was her to say "yeah, we had a technical problem, I'm so sorry for your inconvenience, and I'm sorry I forgot to notate your account." But this woman would not concede that anything was improper anyway, and this was perfectly acceptable. From one side of her mouth she was saying "it didn't get uploaded" but kept saying "it's not our fault" and acting as if its perfectly reasonable to hold locally drawn Wachovia checks with verifiable funds being deposited into Wachovia accounts.

The thing that really kills me is that as of today's mail, 6/5, I still haven't been notified of the hold— there's no reason in this day and age not to be able to generate an email or call if something like this happens. I get calls once every 2 months from my credit card company's fraud division— they let the charges go through, but if something isn't quite right (I bought gas two times in a row for myself and my wife) they call. Why can't the bank do the same?

Why are they absolutely unapologetic about this?

And while I'm at it, with the new "Check 21" why is this an issue at all? They clear faster when you write em, holds are taking the same amount of time. Check 21 is just more corporate welfare.

I'm off to find a new bank. Any bank that tells me that they can hold my check anytime they damn well please, no matter how insane a hold it is doesn't deserve my business— or anyone else's.

Cory

(Photo: Maulleigh)

In a test at The Times — following directions supplied by a local security expert — the writing in the "Pay to the Order," "Dollars" and signature areas on a check was dissolved in less than 15 minutes. Printed information — including the bank routing numbers and the name and address of the account holder — remained intact.

Half an hour later, the test check was dry enough for new information to be filled in. It was a bit crumpled, as if it had gotten wet from rain or sat in someone's pocket. But it looked disturbingly good.

To prevent check washing, do not write checks using ballpoint pens. Instead, use a pen with secure ink that won't dissolve, like the $2.00 Uni-ball 207. For the ultimate in check fraud prevention, pay with cash. — CAREY GREENBERG-BERGER

Check please, thieves say [LA Times]
(Photo: Daquella Manera)

"In short, they said that while Certegy does help them with the battle against consumer fraud, sometimes their practices hurt their good Walgreen's customers," wrote DudeAsInCool. "Thanks for posting my letter so other consumers won't be insulted and inconvenienced in the future... We should be able to use whatever form of payment we want to, when we want to and however we want to."

— BEN POPKEN

PREVIOUSLY: Statistically Speaking, His Check Was Fraudulent
(Photo: Zepfanman.com)

The woman at AT&T told me I received it because AT&T no longer provided telecom service to the Penn State campus - where I haven't lived for 8 years (because I am 100). I'm not sure what went down so that they're sending me almost three whole dollars, but it's three dollars I didn't have this morning, so... Aces.

Bill writes, "I've got that $2.82 check beat. In September of last year, I got a check from "The New AT&T"
for 26 cents. And from a few years ago, I got a check from SBC for ONE PENNY."

So, I wrote in recently to mention that WaMu had sent me blank "checks" in an open, unsealed envelope. I complained, of course, and got a generic reply. Today I got another unsealed envelope of blank checks from Washington Mutual. Hmm.

Today I also received blank checks from CapitalOne. They have a different strategy: in addition to the checks for my account, they included in my envelope the checks (the whole mailing, in fact) for some other customer in some other part of town. Don't worry, Rachid; I won't be using them.

Jason writes:

Hi guys,
I just wanted to update you on my Comcast issue - and give a huge THANK YOU to you guys & the Consumerist site. I truly believe that without your attention to the story, that it would not have rated so high on the minds of the people that ended up handling the matter.

I posted the end results on the website, along with some great before/after shots of the work, and a copy of the check they hand delivered as well. Again - thank you for everything.

Jason

As you recall, Jason's Comcast tech bullied him for cash, unplugged his Media Center PC without powering it down (breaking it) and drilled a bunch of nasty holes in his walls and baseboards.

Since appearing on the Consumerist everything has been fixed. Comcast and Helm Cable hand delivered a check for the damaged hard drive and proper outlets were installed in Jason's home.

We attribute this to Jason's excellent documentation of the problem. He did everything right. Be sure to visit Jason's site to see what a well written complaint looks like. Congratulations, Jason! —MEGHANN MARCO

Comcast Fix My Problem

I'm not sure what to say about this check I got from Comcast, except that I almost framed it. But then I decided how much I hate Comcast, like many decent people do, and decided if I can take money from them, any amount, then I'd do it... then I'll print a copy and frame it.

I don't know why I received it. I switched from Comcast's ISP to Verizon FIOS a while ago (i.e. about a year). Was I supposed to view it as generous? probably not. Laughable? absolutely.

(Photo: Curtis)

Today I got a solicitation from Washington Mutual to "use these paper checks" to access my account. I can't imagine what kind of backward person uses checks to access their credit card. Nonetheless, I get one of these mailings from WaMu every couple weeks. This time, though, they didn't bother to seal the envelope.
Hopefully you can see the pristine glue in the photo.
Maybe they've realized I'm not going to use the checks, and are giving strangers the opportunity to use them for me...? Maybe the Senate committee should look into mandatory Envelope Procedure Education.

Certegry, their check verification service, said that "statistically speaking," his purchase price, the store location, and the time of purchase meant the check might be fake. This flummoxed reader DudeAsInCool. His description of the ensuing events, and how Certegy eventually cleared him, might make you chortle.

We're not sure why he's using a check in the first place though. Why not just use a debit card?

What's your opinion on people writing checks in the store?

DudeAsInCool writes:

Hi

Here's an interesting company and a pretty sordid business practice against consumers for you guys to devour:

Today I went to Walgreens Drug Store in Los Angeles to pick up a few items. The friendly staff did not have the product I wanted, but the Manager called another store in the area who did, and I made arrangements to drop by the other location for the purchase. So far, so good.

I arrived at the other store a couple hours later, picked up a few items in addition to the one they had set aside for me, and wrote a check for them for under $50. This is where the fun begins....

The cashier tried to run the check through several times and had to call the manager over as the damn thing wouldn't process. Then suddenly, light radiated from the heavens, and out spun the following Orwellian non-committal rejection note:

"The agency listed did not make the decision to decline your check and is unable to provide you with the specific reasons for our decision." Huh?!!!! WTF?

I never had a problem writing checks at Walgreen's before, so I asked the manager what was going on. She said I would have to call the company at the bottom of the non-receipt - Certegy Check Cashing Services - because there was nothing she could do about it.

I asked if I could use the store's phone, and the manager politely provided one for me. I dialed. A voice male robot at Certegy's kingdom politely answered: "You will need your 1) Driver's license and 2) store receipt and 3) phone number to continue...blah blah blah... and then proceeded to ask me a litany of questions: "1) What was the check number? 2) How much was the check for? blah blah blah.. Can we have your first born? Etc. After I supply the information, I get the exact same Orwellian message from a second robot, in this case a shebot - as I did from the cashier print out . "We are sorry for the inconvenience, but we are unable to provide any reasons as to why your check was declined..." Ms. Robot then droned on about how Certegy works hand-hand with merchants and handles up to a million checks every day... in order to stop potential fraud. Huh? Now they are accusing me of potential fraud? WTF?? After waiting another 20 minutes or so under Walgreen's irritating florescent prison lights, I gave up and went home.

About an hour later, I got a real person from Certegy on the phone. She was friendly, sympathetic to my position, and did her best to remedy the situation. She explained statistically that 1) the attempted purchase price, 2) the store I bought it from, and 3) the time I bought it, triggered the system that fraud MIGHT occur!!!! Was it the pin stripe shirt I was wearing? WTF?

She then begin researching for my consumer check writing history. At first, she said Certergy didn't appear to have any information on me, to which I said, "Then why was my check not accepted?" No answer, but then lo and behold, she did a little research, the heavens parted once again, and like Mose's 10 Commandments, my personal consumer history appeared, and the corporate Gods said this was good. She then began to read off a series of checks I had written at Walgreens and other stores (Certegy has other personal information on me!!!) She quickly determined I wasn't the problem as all my checks had cleared - it was just my luck that my purchase fell in to the wrong statistical pattern. (Luck????!!) Corporate Twilight Zone would be more like it.

She said she would up my rating immediately (They had a rating on me!!!) so I wouldn't have a problem again, and she did so on the spot. She concluded that she hoped I would be more understanding about the plight that these huge profitable corporate monopolies and their zillionaire CEOs have to face in their daily battle against consumer fraud...or at least it was something to that effect. (I should have suggested that Citergy talk to the RIAA about consumer relations). I then asked: "Wouldn't it make more sense for companies like Walgreens to review the check writing policies of their own customers as opposed to hedging their bets on whatever statistical studies their cash registers and Certegy dream up at the moment of attempted purchase. She said that wasn't possible and that I didn't understand. She's right - I still don't.

There was a happy ending, though. I will no longer encounter any problems with my check writing at Walgreens because I now have been certified as 'Gold' by Certegy; can you believe Certegy actually has a program where people pay to make sure that Certegy's questionable business tactics against check writers aren't used against them!!!!!! And after three trips to Walgreens in one day, I finally was able to write a check for the product I wanted. Imagine that. I even took them home and begin enjoying them. Isn't life wonderful with Certegy Gold? And now I plan on suing the hell out of these jerks for the time lost, embarrassment, and defamation of character by statistical bullshit, etc. (just kidding)

In closing, I have attached my receipt (minus my banking information), as well as a couple links below from a few other innocent consumers who have encountered this outrageous practice:

http://www.complaints.com/march2003/complaintoftheday.march26.17.htm
http://forums.dealofday.com/showthread.php?t=176396

— BEN POPKEN

The scammer requests that you send back a portion to pay for fees or handling charges, or says they "overpaid" and need you to pay back the difference. The check clears when deposited in the bank. A few days later, the check bounces and the thief has got whatever the rube sent them.

The FTC advises:

• Don't wire money to strangers.
• Throw away offers that ask you to send back money for your "free" gift.
• Only accept checks from people you trust.

— BEN POPKEN

FTC Advice on Giving the Bounce to Counterfeit Check Scams
Giving the Bounce to Counterfeit Check Scams

That's why Cedric's advice is: If your checks get stolen, don't tell your bank... — BEN POPKEN

Advice if your checks ever get stolen: don't tell your bank [Otaku] (Thanks to Nick, Ramit and Michael!)

"There is no excuse to process the transactions this way," says Jean Ann Fox of the Consumer Federation of America. "The only reason is to charge more fees."

Banks disagree, saying customers would rather have their electrical bill bounce than their mortgage payment.

One thing is certain: keep an eagle-eye on your balances and payments. Laxness or gaming the float is a sure path to snowballing overdraft fees. — BEN POPKEN

Banks' check-clearing policies could leave you with overdrafts [USATODAY via Blueprint for Financial Prosperity]

"Authorities say a 37-year-old Grand Junction man told them he misplaced his checkbook for sometime. When he found it, he says he discovered 12 checks were missing - and they might have been written without his permission.

However, Sergeant Matt Lewis says the man is worried he might still be liable for them, because he has a multiple personality disorder - and fears one of his other 24 personalities might've used the checks.

Lewis says the man was right to report the missing checks, and that authorities will keep in touch with him and his bank."

"My Alternate Personality Might Have Used Missing Checks" [9news] (Thanks to Brandon!)

We ve heard, and experienced, landlords taking out exorbitant cleaning fees made all the more teeth-gnashing by the apartment being filthy when we moved in but this is the first we ve ever heard of a landlord cancelling the check AFTER it s been issued.

What should William do...?

First we advise checking his lease to see what it says about deposit remittance. Then, take a gander at the SoCal renter code. Some states basically require you to take pictures of the apartment before moving in, otherwise you re screwed and whatever the landlord says, goes, along with your deposit. We, and William, are wondering though that if cancelling the check moves the offense from simply gouging to something illegal.

We also think he may just be screwed and this is why you should never give your landlord your last month's rent.

Anyone else know better than us? The full text of his letter follows.

Dear Consumerist,

I live in Southern California, and I received a letter today from my bank (BofA), telling me that a stop payment was issued on my return deposit from my previous landlady. Because of this, several of my checks bounced, and I got slammed with insufficient fund fees.

She gave me my check on Feb 22, and I deposited it the next day, Feb 23. And today, I get a letter in the mail telling me a stop payment was issued, and the amount of the check was debited from my account, ALONG WITH A $5 service fee!!!

The bank was "nice" enough to tell me that the stop payment was issued on Feb 23 (the day AFTER she gave me my check), but the debit didn't happen until two days ago (March 1), causing all sorts of wonderful problems with my bills.

Upon calling my landlady, she said that she never performed a stop payment. Then, she started saying things like how she needed to pay to clean the room I rented, and that there were issues. But, I had officially left in the middle of January, and even when I received my return deposit check on Feb 22, there wasn't a peep about any of these "problems."

Being the trusting type, I went to the branch, and asked them who had the power to stop payments. Only the person in charge of the account, or someone with their power of attorney. Hmmmmmm.....

I'm afraid that she's not going to give me my money back, because of all these "issues" that just happened to come up in the last week (the room was not left "clean" etc.,.) Shouldn't she have told me that BEFORE giving me my check, instead of just taking it out? Isn't that sort of illegal (Fraud?) Is there anything I can do about it? What about these godawful insufficient funds fees and late fees? Has this ever happened to anyone else?

Hope the fellow Consumerist community can help a guy out.

Sincerely,

William D.

A long time BofA account holder who enjoys living dangerously with his balance, I've had my pocket picked to the tune of $300-400 with this artful setup. It's rather simple. If you have multiple transactions in a same day they process the largest dollar amount first. This means that if you overdraw your account on a day where you have a particularly large transactions, you end up paying the maximum overdraft fee allowed by math. A numerical example to illustrate:

Sucker A has $300 in his BofA account on the day in question. Sucker A pays a $250 car payment, $100 for groceries, $50 for gas and $25 for assorted adult DVDs. BofA will process the transactions in descending order of size. First $250 is withdrawn leaving Sucker A with a balance of $50. BofA then process the $100 transaction leaving Sucker A with a balance of -$50 and incurring an overdraft fee of $30. BofA then process the $50 transaction leaving Sucker A with a balance of -$100, incurring yet another fee. The $25 ill advised purchase is then processed, leaving sucker A with a balance of -$125 and incurring another fee. That 3/25 special on bootleg asian porno ends up costing hapless Sucker A $55.

More math—but explained by a person who writes checks for porn—after the jump.

I've explained to BofA that the order they process things in in all cases must lead to the mathematical maximum of overdraft fees paid by the account holder. I've explained this to them over the phone, in e-mail and even via a spreadsheet. Their response is, that's the language in your account, tough nuts. The other, and more insulting response is that they do this for your own good. You wouldn't want your car payment to bounce would you? To be honest BofA, I could give a shit, I just don't want to pay you $90 of overdraft fees when I could have just as easily paid you $30. My car company already knows I'm a deadbeat, what's one more bounced check. Plus, as I have overdraft, it's not going to bounce anyway.

Let's run the scenario the other direction, to process the transactions from the same day in ascending order of amount and see how much sucker A pays in fees. $25 for porn, Balance is now $275. No overdraft. $50 for Gas. Balance $225, again no overdraft. $100 for groceries, balance $125, yet again no overdraft. $250 for car Sucker A cannot really afford. Balance -$125 and an overdraft fee. One fee of $30 versus 3 fees of $30, all based on how they arbitrarily decide to process things.

I'm aware that it's in my contract, I'm aware that I shouldn't bounce checks. I just think that other consumers should be aware that when playing overdraft roulette, BofA puts 4 in the cylinder instead of 1.

In fact, my reason is very petty $19. That's the overdraft fee I was charged because while Bank of America (and I) slept, the banking trolls determined that my account had insufficient funds for a couple of hours before my payroll direct deposit posted and after a charge of $40.49 posted. Though no representative of Bank of America will tell me what exact times each transaction occurred, they assured me that they know that the bad one came first, and that even though they have no specific record of it, they can assure me that I had a negative balance... for an undetermined period of time.

Does anyone out there have a bank that doesn't nail you for cutting it close?

Scott M. writes:

Aloha Consumerist.

Sometimes, for reasons of my own (okay, my credit card is maxed out, happy?), I like to write checks when paying for the fine goods at the local retail establishments. Invariably, every single establishment asks me for my phone number, since my phone number is not printed on my checks.

I have an unlisted phone number. I have an unlisted phone number for a reason.

I've tried to explain this to people at the shops. I've asked to speak with managers. They all reply in the same flaccid manner that they need my phone number. When asked why, no one can satisfactorily articulate a response.

Read about Lowe's response when he poses the question to them, after the jump.

If my check bounces, neither the clerk nor the manager — indeed, _no one_ from the local establishment — is going to call me. The corporate office of the local establishment will contact my bank (with whom I am happy to share my phone number) to resolve the issue. My bank will then contact me.

What's perhaps even more distressing is that when asked, no one is able to explain what they _do_ with my phone number. I've asked for, but never received, an official privacy policy with respect to the information I provide at checkout time. We take these privacy policies for granted online, but just try to acquire one at the store!

I sent an email to Lowes, the most recent abuser of my privacy, asking them for details. In three separate emails from them, I received nothing but "It is Lowes policy to ask for the phone number on the check for our protection as well as our customers protection." After each canned response I asked "In what way does providing Lowes with my unlisted phone number protect me? In what way does providing my unlisted phone number protect Lowes?" These two questions were never answered; instead I was blessed with another helping of formulated response.

I've recently begun offering the number 555-1212 when asked for my phone number. A friend suggested that I provide the _store's_ phone number, but that requires a bit more work on my part, and is less likely to fool the more astute clerks.

Are you, Consumerist, aware of any legitimate reasons for requiring a phone number when tendering a check for payment at the register? If not, what can a privacy-minded invidual do to thwart this sinister practice?