Go Back   Old Project Avalon Forum (ARCHIVE) > Project Avalon Forum > Project Avalon > Economy and Currency

Notices

Reply
 
Thread Tools Display Modes
Old 10-31-2008, 12:31 AM   #1
Pithiny
Project Avalon Researcher
 
Join Date: Sep 2008
Location: Lynnwood, WA
Posts: 101
Default Heads Up! - Bank Of America next Bank to Fall ?!?!

This is a first hand report by a long term Bank Of America customer.

So, I have been banking with BOA for over 6 years. Always deposit my paycheck with no problems. Yesterday I went through the drive-through and was informed that they were going to put a 2 day hold on my payroll check. Now, as I sat there, I got madder and madder. When the nice teller asked me if there was anything else she could help me with, I said HECK YES, I DO NOT WANT A 2 DAY HOLD ON MY PAYROLL.

She said it was per her "guidelines" and she would ask her supervisor. I told her I would meet her inside.

Once inside, they were expecting me, pointed me to the Merchant Teller off to the side where I was told that my average daily balance is not high enough to get access to my funds the same day. I told her a NEWS FLASH, that perhaps the REASON I was not leaving my money IN A BANK has to do with BANKS GOING BANKRUPT, not because I didn't have money. I emptied my wallet, showed her a several hundred dollars and remarked that I felt it was safer in my wallet then in their bank. I asked if BOA is going to be the NEXT bank to go bankrupt. Security rushed over, asked me to keep my voice down. I was pi$$ed as heck by this time and said "I BET YOU WANT ME TO BE QUIET." I was told if I wanted my money immediately, I could go across the street and cash the check on the bank it was drawn on. I explained I am a BOA customer, not a WaMu customer, and I don't want to pay the $5.00 non-customer fee to cash my check there. I also asked WHY NOW, if BOA is not "having problems" -- since I have been depositing my payroll for years without any hint of a 2 Day HOLD---explain to me why you need to HOLD ON TO MY MONEY FOR 2 DAYS, when the bank is right across the street for Gawds sake, VERIFY THE FUNDS if you want, but I am not leaving this bank with a 2 day hold on a check that is drawn on a bank ACROSS THE STREET. I offered my phone for them to verify funds, when they declined, I offered to walk over there and get a note from them on letterhead.

Security replied the Bank is having problems. THIS really set me off. I said SO BOA IS HAVING PROBELMS and NEEDS MY MEASLEY $2600.00 for 2 days--I change my mind, I want to close my account.

I was then shuffled around a corner and talked to really nice... Security "explained" they were having NSF problems and needed to hold the check, but since I was a long time customer, they would check my banking history and see if it really is a payroll check and confirm I deposit it every month, and remove the 2 day hold.

For now, I did not close my account. But mark my words, Bank Of America fought HARD to keep my money for 2 days. I think they are in deep DooDoo.
Pithiny is offline   Reply With Quote
Old 10-31-2008, 12:54 AM   #2
ralok_j
Avalon Senior Member
 
Join Date: Sep 2008
Posts: 124
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

BS!! Because they were going to put a hold on her check they will be closed by the FDIC? Check holds are normal.
ralok_j is offline   Reply With Quote
Old 10-31-2008, 01:33 AM   #3
mbowie361
Avalon Senior Member
 
Join Date: Sep 2008
Location: Seoul, Korea
Posts: 10
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

I have a quesiton if anyone can answer it. If I have some metals in a safety desposit box in a certain bank, and if that bank fails, what will happen to that safety deposit box?
mbowie361 is offline   Reply With Quote
Old 10-31-2008, 02:21 AM   #4
ralok_j
Avalon Senior Member
 
Join Date: Sep 2008
Posts: 124
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

What happens to my box if my bank fails?

When an insured bank or thrift closes, the FDIC usually arranges for another institution to take it over, including branches where you might have a safe deposit box. In those situations, you should be able to conduct business as usual. If the FDIC cannot find a buyer for your bank, it arranges for you to remove the contents of your box so you can obtain a box at another institution, if you wish. This is done within a few days after the bank fails.

http://www.fdic.gov/CONSUMERS/consum.../sfdpstbx.html
ralok_j is offline   Reply With Quote
Old 10-31-2008, 03:29 AM   #5
Pithiny
Project Avalon Researcher
 
Join Date: Sep 2008
Location: Lynnwood, WA
Posts: 101
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

Quote:
Check holds are normal.
I have no idea where you are from, but HOLDS on local checks are NOT normal. I am 51 years old and live in Washington State. I have NEVER had a local check held for ANY number of days, PERIOD. Even the Bank acknowledged it was "new" guidelines. I should be able to walk into my bank and CASH a local check, if you don't see the problem here, then I don't know what to tell you. This is NOT NORMAL banking procedure.

Last edited by Pithiny; 10-31-2008 at 03:36 AM.
Pithiny is offline   Reply With Quote
Old 10-31-2008, 03:31 AM   #6
mbowie361
Avalon Senior Member
 
Join Date: Sep 2008
Location: Seoul, Korea
Posts: 10
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

Quote:
Originally Posted by ralok_j View Post
What happens to my box if my bank fails?

When an insured bank or thrift closes, the FDIC usually arranges for another institution to take it over, including branches where you might have a safe deposit box. In those situations, you should be able to conduct business as usual. If the FDIC cannot find a buyer for your bank, it arranges for you to remove the contents of your box so you can obtain a box at another institution, if you wish. This is done within a few days after the bank fails.

http://www.fdic.gov/CONSUMERS/consum.../sfdpstbx.html
Thank you very much...it's good to know.
mbowie361 is offline   Reply With Quote
Old 10-31-2008, 03:36 AM   #7
ralok_j
Avalon Senior Member
 
Join Date: Sep 2008
Posts: 124
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

Quote:
Originally Posted by Pithiny View Post
I have no idea where you are from, but HOLDS on local checks are NOT normal.
I worked in banking for a number of years and yes, holds on local checks was the norm. You realize a check is just a piece of paper. It's not cash nor is a check as good as cash.
ralok_j is offline   Reply With Quote
Old 10-31-2008, 03:37 AM   #8
ralok_j
Avalon Senior Member
 
Join Date: Sep 2008
Posts: 124
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

Quote:
Originally Posted by mbowie361 View Post
Thank you very much...it's good to know.

I just saw that your in S Korea. I'm not sure how they operate.
ralok_j is offline   Reply With Quote
Old 10-31-2008, 03:51 AM   #9
Pithiny
Project Avalon Researcher
 
Join Date: Sep 2008
Location: Lynnwood, WA
Posts: 101
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

ralok_j,

Where are you from? I mean, when you worked in banking?
Pithiny is offline   Reply With Quote
Old 10-31-2008, 04:14 AM   #10
sebring1963
Avalon Senior Member
 
Join Date: Oct 2008
Location: Duarte, CA
Posts: 70
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

suggestion:

Open an account at Wamu they won't be able to place a hold on checks that are drawn on their corporate accounts
sebring1963 is offline   Reply With Quote
Old 10-31-2008, 04:17 AM   #11
ralok_j
Avalon Senior Member
 
Join Date: Sep 2008
Posts: 124
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

Quote:
Originally Posted by Pithiny View Post
ralok_j,

Where are you from? I mean, when you worked in banking?
My location? Southeast Michigan.
ralok_j is offline   Reply With Quote
Old 10-31-2008, 04:29 AM   #12
Pithiny
Project Avalon Researcher
 
Join Date: Sep 2008
Location: Lynnwood, WA
Posts: 101
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

ralok_j,

Since you have info!! I wonder why BOA has not held checks before? Specifically a payroll check that I deposit like clockwork.

This is a new guideline, I think having to do with the fact that for the last 3-4 months, I have deposited my checks and immediately withdrawn it, all of it, leaving a very low balance. I do this twice a month. Sure---this affected my "average daily balance" but they have never held a local check before this.

Also, I could tell that I was not the only problem they had in the bank yesterday, there were 3 visible security guards, one of them on me like white on rice.

I think something is going on, although it might be branch specific. I'll go to another branch tomorrow and see what's up across town.

Also, I do realize that checks are not money. I also know you can write a check on a napkin and cash it. You can write the elements from a check on ANYTHING and take it to a bank to be cashed. I also realize that actual MONEY is not worth the paper it is printed on and is not backed by anything of value, and beyond that, it is really a "DEBT" that someone owes that I am simply passing to someone else. "Legal Tender" only becomes valuable when you redeem it for something of value, food, gasoline, gold, silver, whatever.

I also know how to cash unsigned checks, in fact when I owned a business and people forget to sign the payment/check, I have never sent it back to them to be signed.

Last edited by Pithiny; 10-31-2008 at 04:35 AM. Reason: Added info
Pithiny is offline   Reply With Quote
Old 10-31-2008, 04:44 AM   #13
NancyV
Avalon Senior Member
 
Join Date: Sep 2008
Posts: 80
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

They probably have security guards there to deal with rude people like you who seem to be determined to make a scene and mistreat the people who just work in the bank. It's normal to hold checks if you don't have enough funds in your bank to cover a withdrawal of the amount of the check. I also live in Washington State and bank at both WAMU and B of A. I don't make a scene if they say they are going to hold a check. If I don't like it I take it to another bank without mistreating the people who work in the bank following their rules. Do you really think that people will admire you for telling a story about your abuse of other people just doing their job?
NancyV is offline   Reply With Quote
Old 10-31-2008, 04:56 AM   #14
ralok_j
Avalon Senior Member
 
Join Date: Sep 2008
Posts: 124
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

Quote:
Originally Posted by Pithiny View Post
ralok_j,

Since you have info!! I wonder why BOA has not held checks before? Specifically a payroll check that I deposit like clockwork.
They may be experiencing a lot of NSF checks at that particular branch. It can happen that one office will suddenly experience numerous deposited items being returned.

Another red flag is that an individual will maintain an average relationship balance of $7,000, which would cover a returned check of $2,400. Suddenly, the average drops to $500 and now if that deposited item is returned there is a potential for loss. This is the most common scenario and the staff is likely trained to use their best judgment.

Quote:
Originally Posted by Pithiny View Post
I also know how to cash unsigned checks, in fact when I owned a business and people forget to sign the payment/check, I have never sent it back to them to be signed.
Sure. Read the terms and conditions that you receive when you open an account ( I know, most people pitch em). It states in there that the bank is not liable for any check that clears through the ACH system. I laugh when people tell me they are going to post date the check they send to the phone company. You try to talk them out of it, but they "KNOW" it can't be cashed because the girl that sat next them at the doctor's office has a cousin who was dating an attorney and he said they can't.
ralok_j is offline   Reply With Quote
Old 10-31-2008, 06:51 AM   #15
Knightbk
Avalon Senior Member
 
Join Date: Oct 2008
Posts: 73
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

This is stupid fear mongering based on ignorance.

BoA isn't going to fail. Period.
Knightbk is offline   Reply With Quote
Old 10-31-2008, 08:34 AM   #16
mbowie361
Avalon Senior Member
 
Join Date: Sep 2008
Location: Seoul, Korea
Posts: 10
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

Quote:
Originally Posted by ralok_j View Post
I just saw that your in S Korea. I'm not sure how they operate.
I don't either, my account is with Bank of America...thanks for the concern anyway...
mbowie361 is offline   Reply With Quote
Old 10-31-2008, 09:13 AM   #17
Steve_A
Project Avalon Moderator
 
Join Date: Sep 2008
Location: Northeastern Brazil
Posts: 1,259
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

Hi Pithiny,

I think in this case your friend did not understand the bank. Your friend normally had a balance at the end of the month and the bank knowing this, could allow the withdrawal of funds before the cheque was cleared as a courtesy to its' client because it knew that there was always going to be a positive balance.

The bank knew this because of the 'habit' of the movement of the account.

When your friend changed their habit and withdrew their normally comfortable balance from the bank, the bank could see this as as a possible financial threat and so withdrew the courtesy and started to 'play it by the book' because the bank doesn't know the reason why the monies were being withdrawn, but just knew that the balance was close to zero.

Less room for manouevre by the bank.

n the other hand, if your friend was flush in their wallet, I'm sure that a normal two day wait (in the UK it's three) wouldn't hurt too much.

As for the bank going under, I'm sure it's a possibility, but I'm not too sure that your friends case would be the catalyst. Nor your friends case the red flag. When banks go under, they keep the doors closed. Period.

Best regards,

Steve


Quote:
Originally Posted by Pithiny View Post
This is a first hand report by a long term Bank Of America customer.

So, I have been banking with BOA for over 6 years. Always deposit my paycheck with no problems. Yesterday I went through the drive-through and was informed that they were going to put a 2 day hold on my payroll check. Now, as I sat there, I got madder and madder. When the nice teller asked me if there was anything else she could help me with, I said HECK YES, I DO NOT WANT A 2 DAY HOLD ON MY PAYROLL.

She said it was per her "guidelines" and she would ask her supervisor. I told her I would meet her inside.

Once inside, they were expecting me, pointed me to the Merchant Teller off to the side where I was told that my average daily balance is not high enough to get access to my funds the same day. I told her a NEWS FLASH, that perhaps the REASON I was not leaving my money IN A BANK has to do with BANKS GOING BANKRUPT, not because I didn't have money. I emptied my wallet, showed her a several hundred dollars and remarked that I felt it was safer in my wallet then in their bank. I asked if BOA is going to be the NEXT bank to go bankrupt. Security rushed over, asked me to keep my voice down. I was pi$$ed as heck by this time and said "I BET YOU WANT ME TO BE QUIET." I was told if I wanted my money immediately, I could go across the street and cash the check on the bank it was drawn on. I explained I am a BOA customer, not a WaMu customer, and I don't want to pay the $5.00 non-customer fee to cash my check there. I also asked WHY NOW, if BOA is not "having problems" -- since I have been depositing my payroll for years without any hint of a 2 Day HOLD---explain to me why you need to HOLD ON TO MY MONEY FOR 2 DAYS, when the bank is right across the street for Gawds sake, VERIFY THE FUNDS if you want, but I am not leaving this bank with a 2 day hold on a check that is drawn on a bank ACROSS THE STREET. I offered my phone for them to verify funds, when they declined, I offered to walk over there and get a note from them on letterhead.

Security replied the Bank is having problems. THIS really set me off. I said SO BOA IS HAVING PROBELMS and NEEDS MY MEASLEY $2600.00 for 2 days--I change my mind, I want to close my account.

I was then shuffled around a corner and talked to really nice... Security "explained" they were having NSF problems and needed to hold the check, but since I was a long time customer, they would check my banking history and see if it really is a payroll check and confirm I deposit it every month, and remove the 2 day hold.

For now, I did not close my account. But mark my words, Bank Of America fought HARD to keep my money for 2 days. I think they are in deep DooDoo.
Steve_A is offline   Reply With Quote
Old 10-31-2008, 01:35 PM   #18
Rocky_Shorz
Avalon Senior Member
 
Join Date: Sep 2008
Location: USA
Posts: 1,098
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

today is year end for Hedge Funds when they have to report the bottom line to investors so many are trying to get "whole". I've been watching for what might happen over this period, I guess holding money at a bank a few days is one way...
Rocky_Shorz is offline   Reply With Quote
Old 10-31-2008, 01:46 PM   #19
Sarahmay
Avalon Senior Member
 
Join Date: Sep 2008
Location: Sedona Arizona
Posts: 549
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

God I hate banks. That has happened to me before, many years ago, before I found out about credit unions.

Try to switch to a credit union, they are a much safer bet, better service, and you own a piece of it as a member.
Sarahmay is offline   Reply With Quote
Old 10-31-2008, 01:57 PM   #20
deb003
Avalon Senior Member
 
Join Date: Sep 2008
Posts: 297
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

I think many banks are doing things differently lately.
I also think your friend has the right to complain if she feels she needs to. It's her right to ask question and get angry if that's what she feels.
I actually also have access to the money I deposit the same or next day; however, if I deposit more than $5000, then they add a 3 day post or more.
I am actually purchasing a home from Fannie Mae, and I call them Satan's bank.
It has been a total nightmare with them.
I was able to get a hardship withdrawal from my 401K for the downpayment of the property. Thank God I took all the $$ I had for the downpayment while I was watching my stocks go down the drain.
It was a foreclosed property, in brand new condition. I am all packed, changed transferred utilities, renter a moving truck.
Monday was the closing date.
Now, If i was 1 DAY late, Fannie Mae would charge me $150.00 each extra day, but I was right on time with all my document, tax return info, criminal balkground , everything.
So comes Monday and I find out that Fannie Mae is not ready to close.
Turn out Fannie Mae doesn't have ownership of the property.
Bank of America still has not transferred the Quit Claims Deed to Bank to America.
I call Fannie Mae, speak to 2 of their guy, they don't care, they are rude.
I tell them, I have a baby, I am a single mother. I will be homeless if we don't close on this house today, Friday the 31st. They say, it's no my problem, call your Lending Agent.
I call my Lending Agen, crying, what can I do.
She tells me Fannie Mae is waiting for this document from BoA and they haven't received it. She has called them, faxed, then emailed them and she told me. They really don't care who you are. They are not concerned about you.
All we can do is try to pressure them by calling, emailing to get the job done.
I got angry, and scared, I saught a real estate lawyer. He was mad, he said this sometimes happens with Foreclosure but then he tells me that he looked at my Good Faith estimate and tells me that they are RIPPING ME OFF!
They are charged me 3 times as much for Administrative fees , and 3 times as much for the title.

I asked my landlord if I could please stay another week, because the home isn't ready for me to move. I think by law I can stay, she said definitely I can stay, she will wait.

The situation for banks today I think is exceptional different. it will require so much more patience on our part because things are just so tough out there.
I can't tell you the frustration and the fact that they really don't give a **** about me and the fear of being homeless this has brought to me.
I wish I didn't deal with Fannie Mae but I have already put in $3000 down payment and will have to sit on my butt and wait.

I might change the title company and tell them that they are ripping me off, but that will take another 3 weeks to find a Title company. And I don't have the luxury of 3 weeks.

All I ask people out there is to speak your mind if feel like customer service or the bank is ripping you off; however, I am learning that especially at this day in the game, we have to pick our battles.
deb003 is offline   Reply With Quote
Old 10-31-2008, 01:59 PM   #21
deb003
Avalon Senior Member
 
Join Date: Sep 2008
Posts: 297
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

Sorry, I meant BoA hasn't transferred the Quit Claims Dee to Fannie Mae.
all these names confuse me! LOL
deb003 is offline   Reply With Quote
Old 10-31-2008, 03:02 PM   #22
Aisuru Chiku
Avalon Senior Member
 
Aisuru Chiku's Avatar
 
Join Date: Sep 2008
Location: Los Angeles, California
Posts: 47
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

I have a question...I have BOA credit card, what happens to the credit card once when bank closes???

Aisuru Chiku is offline   Reply With Quote
Old 10-31-2008, 03:15 PM   #23
Waterman
Avalon Senior Member
 
Join Date: Sep 2008
Posts: 345
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

There are laws on the books that payroll checks have to be cashed when presented.

Safe deposit boxes can be compromised and not available if a bank goes down.

Once a check is written and presented to the bank it is written on it is not lawful to charge for cashing the cash because legally those funds are owned by the person on the check.

The main item of contention to get the funds is that they want finger prints.

hmmmm?
Waterman is offline   Reply With Quote
Old 10-31-2008, 03:33 PM   #24
Baron Cross
Avalon Senior Member
 
Baron Cross's Avatar
 
Join Date: Oct 2008
Posts: 24
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

Hello guys

You think thats bad that they wont cash your check, I was trying to take money out of my account at wells fargo and they said they dont have that kind of cash on hand that I have to wait for 7-10 days to wait for them to order it. I said I thought you guys were a bank. I was trying to take out 20K but I have 175K in deposit. Its not like I was trying to take out all my money. Then I said how much can you give me then and they replied none because they know how much I was trying to take out that I have to order the whole thing if I want cash. I went to a different branch and they told me the same thing and I only ask for 10k. So I went to a another branch got 4k.

Last edited by Baron Cross; 10-31-2008 at 03:42 PM.
Baron Cross is offline   Reply With Quote
Old 10-31-2008, 04:30 PM   #25
Steve_A
Project Avalon Moderator
 
Join Date: Sep 2008
Location: Northeastern Brazil
Posts: 1,259
Default Re: Heads Up! - Bank Of America next Bank to Fall ?!?!

Hi Aisuru Chiku,

If you are certain the bank will go under - I think others will know before you - try using the card. If it works good. But generally it won't. Once the bank goes, so does the card.

Speaking of credit cards, George Green spoke about leveling all your debt. I think that it would be better to always have some debt (only very little) because credit card companies can cancel credit cards whenever they want without prior notice, however, if you have any outstanding debt, they won't, as they will want you to pay them. Always be a buck in debt, but just a buck.

Best regards,

Steve


Quote:
Originally Posted by Aisuru Chiku View Post
I have a question...I have BOA credit card, what happens to the credit card once when bank closes???

Steve_A is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT. The time now is 04:57 AM.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Project Avalon