NSF Or Uncollected?
The Miami Herald notes that a Bounced check disqualifies Miami Beach candidate Joshua LaRose
LaRose submitted the $1,360 check to the city on Sept. 10, one day before the qualifying deadline. But the city learned Sept. 18 that SunTrust Bank had returned the check because the 28-year-old candidate did not have sufficient funds in his account.
LaRose says he opened the account with $500 in cash and then deposited $2000 in checks, but the bank put a hold on the checks. That means the check came back “uncollected funds”, not “not sufficient funds”.
The banks charge both sides for returned checks, so it is in their interest to increase the frequency of this happening. Putting a hold on deposited checks is one way of doing it, but they have made other changes.
Two decades ago, when I was involved with banking software, the reconciliation code added deposits to accounts first, and then deducted checks. These days the jobs are reversed. That means if you deposit your paycheck in the morning, and your landlord deposits your rent check in the afternoon, the rent check is deducted before the paycheck is credited.
The other thing that happens is that more and more businesses are using checks like debit cards and electronically withdrawing funds from your account immediately, while your direct deposits will credited at some time during the day.
Every bank has their own strategy, and you had better know what it is, or you will end up paying fees that you really shouldn’t have to pay, just like Mr. LaRose. Oh, these incidents also affect your credit rating.
2 comments
I “bank” with a credit union. F*** banks.
.-= last blog ..Republicans finally attack something real =-.
Credit unions are the only choice anymore, if for no other reason they aren’t constantly changing their names, account numbers, branches, and personnel, like every bank in this minuscule area.
I also get to vote on the directors of the credit union, which is something no bank has ever offered me.