Posted by
RabbiHaim on Tuesday, April 24, 2007 4:20:25 PM
I know that I have stretched my budget slightly farther than it wanted to stretch. I have not been working much for the past three and a half years, but I am making do, more or less. Most months I can just squeeze all the payments out into the payments in. Every month, I work hard to make it easier the next month. Some months I succeed; some months I fail; some I fail miserably. I have a few checks which arrive near the beginning of the month, usually late enough to make me have one or two, (or more), overdrafts at the bank. I try to juggle the accounts well enough so that this doesn’t happen, but it does.
Here is the problem. Each time I get one of these overdrafts the bank charges me about $38 and honors the charge or check. I consider this to be something of the cost of doing business. I pay the bank the excruciating fee, which in many cases amounts to more than the usurious rates charged by the loan sharks at payday loan operations. I prefer working with a substantial financial institution. Their rates for what are in fact short term loans are ugly, but I never argue as they take them. I do argue when after explaining my position to the local branch manager several times, somehow, someone forgets that my credit is really good with them, as I always settle and go fairly positive no later than the eleventh of the month.
What happens at those times is that someone, [in a far-off Regional Office] decides that it is in the Bank’s interest to “punish me” for paying their outrageous fees for a short term loan of no longer than a week or two. Their “punishment” is to “hold” my deposits for up to ten working days, or as the bank today explained “until the check clears.” “Until the check clears” used to be a powerful statement; but today with the institution of the new Banking Rules called “Check 2000” checks “clear” instantaneously! If you go to the right gas station in the right state, you can write a check for your gas and the attendant will slide it through a MICR reader, and your account will be debited and the attendant will offer to return your check to you – because the transaction is complete and the paper is insignificant. So, with these new rules, why can’t my bank do the same thing with my deposit of a check? because they make money by doing it differently. What they claim to do is process all daily transactions at midnight; well, not all daily transactions, as the cutoff time for today’s transactions is either noon or one PM at most banks.
After they process the transaction, they still do not release the funds to your account until the branches open for business the next morning, at the earliest. While you and I may not think that eight hours of interest amounts to a lot of money, think of the daily interest on all the transactions incoming to a national bank, divide that number by twenty-four and multiply by eight. It is, believe me, a LOT OF MONEY.
I pay my overdue fines at the library and at the bank, but the library never tells me that since I have overdue books out they will not record my books as having been returned for at least another ten working days so that they can consider my account overdue for a longer period and refuse to allow me to borrow more books.
Worse than the analogy above, the bank has a policy that if you are overdrawn for more than x days, they will tack on another $yy.yy in a surcharge for continuously overdrawn accounts. This they do even when the money is in their hands from the moment that the check is in their hands, or at least, it could be if the banks brought their own procedures into line with the times and Federal Regulations.
The other option offered to me by the teller at my bank was that I “could take the check over to BankAmerica” (upon which it was drawn), and have them cash it. The problem with that option is that any bank today will tell you that “for your protection” they will not cash a check unless you have an account at their bank. Where the check is drawn is of no consequence to them. I have from time to time argued with various banks about this policy which they feel is perfectly logical. I tell them that the money is in their bank and that an account holder of theirs has told me that I can have it. That, as far as I can figure it is the extent of the transaction. They don’t seem to agree.
It reminds me of the time when I banked with a bank in Arizona and they, as a courtesy to customers in good standing would credit deposits immediately as you deposited the funds or checks. They did that even while other banks didn’t, until the Federal Regulations changed, and the new regulations came into force. The intent of the new regulation was to stop (some) banks from holding funds for up to one whole week before making those funds available to the depositor. The regulations required that banks make the funds available within two business days for fund transfers in region, and three business days for transfers between regions. Interestingly, the immediate effect of this new regulation at the bank I dealt with was that they stopped crediting deposits immediately, “because of the new government regulations which require us to hold the funds for two business days.”
There has to be a better way to do business with today’s technology. I just don’t know what it is.
Now that is my rant for today, and I don’t think I called anyone any bad names, or used any “bad” words even though “bank” is a four letter word.
I must add this thought, which I couldn’t work in to the body of the rant. “My Bank” proudly displays a sign which reads, “Aceptamos Matricula Consular.” That sign translates from the Spanish as, “If you can prove that you are in this country illegally, (using a document issued by the Mexican Government to prove that status), we will be glad to serve you.”