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April 22
A Banker's Guide to Virtual Currency
Andrew Beal

April 24
BSA/AML Compliance: Writing the SAR Narrative
Ken Golliher

April 29
HSA Basics
Whitney Johnson

April 29
Required Training for Loan Originators
Mary Beth Guard and Jack Holzknecht

May 13
Overdraft Practices in Today's Regulatory Environment
John Burnett

May 14
Reg E Claims - Allocating Liability Correctly
Andy Zavoina



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#1481633 - 12/16/10 11:26 AM Certified checks
mac27 Offline
New Poster

Registered: 01/07/09
Posts: 9
Loc: NH
We offer certified checks for customers to guarantee their own checks. (I am not referring to official checks/treasurers checks) We still use the traditional approach - we withdraw the funds from the customer's checking account, stamp the check as certified and sign it, deposit the funds in a seperate account, and punch holes in the micr line over the customers checking account number. This is primarily requested for mortgage closings to gurantee the funds at closing.

Recently we have had a couple of attorneys/mortgage closers challenge our process stating that some banks will no longer accept the certified checks if the holes are punched in the micr line as the checks do not go through their scanners.

Is anyone else having a problem with this - and do you have a different process for certifying customer's checks?

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Deposits and Payments
#1481641 - 12/16/10 11:36 AM Re: Certified checks [Re: mac27]
Doug Hendrickson Offline
Power Poster

Registered: 10/01/09
Posts: 3257
Loc: NE New Mexico
We would issue a Cashier's Checks. We do not perform any sort of 'certification' of a customer's check anymore.
_________________________
I hear and I forget. I see and I remember. I do and I understand.--Confucius

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#1481644 - 12/16/10 11:40 AM Re: Certified checks [Re: Doug Hendrickson]
califgirl Offline
Diamond Poster

Registered: 03/04/02
Posts: 2226
Loc: The O.C., California
We would issue a cashier's check or do a wire.

I didn't know anyone still used certified checks. I haven't seen one in at least 30 years.
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I can explain it to you. I can't understand it for you.

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#1481680 - 12/16/10 12:16 PM Re: Certified checks [Re: califgirl]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 48543
Loc: Galveston, TX
I concur... Offering a product that is antiquated and no longer widely acceptable is not doing your customer any real service.
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The opinions expressed are my own, take them or leave them.

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#1481690 - 12/16/10 12:23 PM Re: Certified checks [Re: califgirl]
madukes Offline
Diamond Poster

Registered: 07/17/09
Posts: 1150
Loc: Flyers Country
We do not offer certified checks. I have however seen them with magnetic strips covering the micr line to reroute the check to another account (certified check account).
Originally Posted By: califgirl
We would issue a cashier's check or do a wire.

I didn't know anyone still used certified checks. I haven't seen one in at least 30 years.


Still used in Canada - I just had a certified canadian check earlier this week.

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#1482163 - 12/17/10 09:37 AM Re: Certified checks [Re: madukes]
mac27 Offline
New Poster

Registered: 01/07/09
Posts: 9
Loc: NH
Thank you all. Yes this does seem to be a service that is rarely used but we do have a few customers who are dealing with companies that insist on these. I do agree we need to look at this service to see what we do going forward. Thank you all for your thoughts and suggestions!!!

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#1482179 - 12/17/10 09:49 AM Re: Certified checks [Re: mac27]
Ken_Pegasus Offline
10K Club

Registered: 08/30/01
Posts: 16671
Loc: Another trip around the sun
I think the direct answer to your question is that you will not find many other banks with this problem because so few banks still certify checks. Your brief explanation includes more information than most bankers know about the process.
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We are Boston. We are America. We respond. We endure. We overcome...and we own the finish line. Joe Biden

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#1482183 - 12/17/10 09:57 AM Re: Certified checks [Re: Ken_Pegasus]
Doug Hendrickson Offline
Power Poster

Registered: 10/01/09
Posts: 3257
Loc: NE New Mexico
Most of my tellers did not even know what a 'certified' check was...I guess I'm showing my age.
_________________________
I hear and I forget. I see and I remember. I do and I understand.--Confucius

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#1482204 - 12/17/10 10:18 AM Re: Certified checks [Re: Doug Hendrickson]
John Burnett Online
10K Club

Registered: 10/27/00
Posts: 29431
Loc: Cape Cod
No, Doug. They are showing their youth.
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John S Burnett
BankersOnline .com

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#1482211 - 12/17/10 10:23 AM Re: Certified checks [Re: Doug Hendrickson]
Zoo Mama Offline
100 Club

Registered: 03/12/08
Posts: 172
I heard a teller arguing with a customer one day that a certified check was really a cashier's check. They had no idea what the term meant. I also stopped a teller from refusing one for deposit from a car dealership. I think in the last ten years I have done one and am surprised that you still have customers asking for them.

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