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#1502117 - 01/28/11 02:13 PM Tax Refund Checks-charging fees to cash?
Anonymous
Unregistered


My bank charges non-customers a fee of $150 to cash tax refund checks. This just doesn't seem right to me... is it okay to do this?

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#1502168 - 01/28/11 02:48 PM Re: Tax Refund Checks-charging fees to cash? [Re: Anonymous]
1 Peter 5:7 Offline
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Registered: 06/08/01
Posts: 1325
Loc: TX
One-hundred fifty dollars?
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#1502189 - 01/28/11 03:00 PM Re: Tax Refund Checks-charging fees to cash? [Re: 1 Peter 5:7]
BrianC Offline
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Registered: 11/26/04
Posts: 2744
Loc: Illinois
Thanks...I ..uh...think I'll take mine to Wal-Mart.
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#1502222 - 01/28/11 03:22 PM Re: Tax Refund Checks-charging fees to cash? [Re: BrianC]
Anonymous
Unregistered


I know! It is outragious!!! We don't have a Walmart close by and I guess the steep fee is so that we don't have to cash too many of them. Is it okay to charge any fee?

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#1502231 - 01/28/11 03:31 PM Re: Tax Refund Checks-charging fees to cash? [Re: Anonymous]
jennyfromthebloc Offline
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Registered: 05/07/04
Posts: 1460
Loc: Big Brother knows and that's a...
Your state law will tell you if it is acceptable to charge a check cashing fee.
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My opinion is mine only- not my employer's!


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#1502237 - 01/28/11 03:35 PM Re: Tax Refund Checks-charging fees to cash? [Re: jennyfromthebloc]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40477
Loc: Bloomington, IN
Quote:
My bank charges non-customers a fee of $150 to cash tax refund checks.


And then we wonder why we have the legislators and other regulatory authorities after us and the distrust of consumers.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1502243 - 01/28/11 03:40 PM Re: Tax Refund Checks-charging fees to cash? [Re: Dan Persfull]
jennyfromthebloc Offline
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Registered: 05/07/04
Posts: 1460
Loc: Big Brother knows and that's a...
Originally Posted By: Dan Persfull
Quote:
My bank charges non-customers a fee of $150 to cash tax refund checks.


And then we wonder why we have the legislators and other regulatory authorities after us and the distrust of consumers.


exactly what I was going to say.
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My opinion is mine only- not my employer's!


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#1502287 - 01/28/11 04:13 PM Re: Tax Refund Checks-charging fees to cash? [Re: jennyfromthebloc]
Anonymous
Unregistered


Are banks required by law to cash tax refund checks (or any other federal, state or local govenment checks) for non-customers?

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#1502289 - 01/28/11 04:13 PM Re: Tax Refund Checks-charging fees to cash? [Re: Anonymous]
PStateBank Offline
Gold Star

Registered: 11/18/08
Posts: 480
Loc: Texas
Originally Posted By: Anonymous
My bank charges non-customers a fee of $150 to cash tax refund checks. This just doesn't seem right to me...


SERIOUSLY????

Anon, you are right... this doesn't sound right to me either. If the bank doesn't want to take the risk and cash the checks, then don't. It is not right to price the service so high as to exploit the non-customers... and truth be known, you're probably losing the opportunity to turn some of these non-customers into potential customers.
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#1502325 - 01/28/11 04:40 PM Re: Tax Refund Checks-charging fees to cash? [Re: PStateBank]
Skittles Online
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Registered: 09/10/02
Posts: 11952
Loc: KY
No, banks are not required to cash checks these checks for non-customers.
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#1502357 - 01/28/11 04:59 PM Re: Tax Refund Checks-charging fees to cash? [Re: Anonymous]
#Just Jay Offline
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Registered: 10/26/06
Posts: 13623
Loc: Cheeseheadland
Originally Posted By: Anonymous
Are banks required by law to cash tax refund checks (or any other federal, state or local govenment checks) for non-customers?


State Law issue... I think Mass might...
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#1502393 - 01/28/11 05:25 PM Re: Tax Refund Checks-charging fees to cash? [Re: #Just Jay]
John Burnett Online
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Registered: 10/27/00
Posts: 30047
Loc: Cape Cod
Just Jay -- Tax refund checks aren't on the list of checks that state-chartered banks in MA have to cash for non-customers, thankfully. The law generally addresses monthly benefit checks.
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John S Burnett
BankersOnline.com

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#1502402 - 01/28/11 05:36 PM Re: Tax Refund Checks-charging fees to cash? [Re: Anonymous]
Kathleen B Online

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Registered: 12/27/00
Posts: 17033
Originally Posted By: Anonymous
My bank charges non-customers a fee of $150 to cash tax refund checks. This just doesn't seem right to me... is it okay to do this?

I would be concerned that regulators (or a lawyer) would find this fee to be abusive under UDAP.
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#1502691 - 01/31/11 12:16 PM Re: Tax Refund Checks-charging fees to cash? [Re: Kathleen B]
Anonymous
Unregistered


$150 is just plain unethical!

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#1502898 - 01/31/11 03:15 PM Re: Tax Refund Checks-charging fees to cash? [Re: Skittles]
girlsrope2 Offline
100 Club

Registered: 09/21/06
Posts: 113
Loc: Land of Capitalism
Are you kidding me? I am in full support of your bank charging that fee. #1 They don't have to cash their check with you. Non-customers do have options. . . wal-mart was mentioned which by the way they are cashing these checks for $3 each or in our area we have a local pawn shop (who is our customer) who cashes these checks for 15% of the amount of the check. Amazingly enough. . . last year he cashed over $900,000 of these checks. Hmmmm. . . at 15%. . .yes he made a nice tidy $135,000. From a risk standpoint, I don't want the risk. Yes the checks may be good, but people aren't. They may have stolen the check, forged names and IDs, and may not have all parties present not to mention the additional cash that must be kept on hand and cost to order in that cash on a weekly basis. If folks want to be our customer we are glad to have them. If not, they can go somewhere else. Sounds harsh doesn't it? See what overregulation and Frank-Dodd does to a person!
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#1502903 - 01/31/11 03:20 PM Re: Tax Refund Checks-charging fees to cash? [Re: girlsrope2]
BrendaC Offline
Power Poster

Registered: 09/18/01
Posts: 6029
Loc: Sweet Home AL
When you venture that far outside of the box, you are just asking for trouble. It's like waiving a red flag in front of a bull, consumer advocacy groups love to find these type of issues. Then you're on the evening news and everybody that has ever had an issue with the bank comes crawling out of the woodwork.

Then you get to explain to the Board how you're going to manage the reputational damage. Will probably cost much more than you ever gained in check fee income.


Edited by BrendaC (01/31/11 03:52 PM)
Edit Reason: apparently can't spell today
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#1502904 - 01/31/11 03:21 PM Re: Tax Refund Checks-charging fees to cash? [Re: girlsrope2]
Anonymous
Unregistered


Wait until the local newspaper prints that Friendly Hometown Bank charges $150 to cash a government check. Terrible PR will ensue...despite the risk. I'd rather just say that we don't cash them for non-customers.

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#1502908 - 01/31/11 03:23 PM Re: Tax Refund Checks-charging fees to cash? [Re: Anonymous]
girlsrope2 Offline
100 Club

Registered: 09/21/06
Posts: 113
Loc: Land of Capitalism
I must be mistaken. .. do consumer advocacy groups own banks???
_________________________
Punishment and recovery are so rare--prevention is the only viable course of action. --Frank Abagnale

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#1502918 - 01/31/11 03:27 PM Re: Tax Refund Checks-charging fees to cash? [Re: girlsrope2]
Comply 101 Offline
Platinum Poster

Registered: 07/25/01
Posts: 639
There is this concept in Enterprise Risk Management called Reputation Risk. To some banks, I hear it is a big deal. I would just refuse to cash them.
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#1503143 - 02/01/11 09:07 AM Re: Tax Refund Checks-charging fees to cash? [Re: girlsrope2]
John Burnett Online
10K Club

Registered: 10/27/00
Posts: 30047
Loc: Cape Cod
Originally Posted By: girlsrope2
I must be mistaken. .. do consumer advocacy groups own banks???
No, of course they don't own banks. But they can drive away business and make life miserable for a bank that they decide to take on. As suggested, it's probably not worth picking the fight with them.
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John S Burnett
BankersOnline.com

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#1504891 - 02/03/11 04:06 PM Re: Tax Refund Checks-charging fees to cash? [Re: girlsrope2]
Anonymous
Unregistered


Originally Posted By: girlsrope2
Are you kidding me? I am in full support of your bank charging that fee.


Amen Brother or Sister! And Dear OP, I see your $150 and raise you to 10%! Our state (anonymous!) allows ten bucks or ten percent whichever is greater. I want to start that now.

Financial institutions can offer a check-cashing service without having to compete on amounts or fees with MSBs or Wal-Mart. Wal-Mart is going to stomp all banks on all fees, so matching their rates won’t be possible in the foreseeable future. They don’t get expensive until they eliminate their competition.

If the check holder had a relationship with an MSB, they would be at that MSB instead of standing in our lobby. No, they came to our institution, and said, “I’d like to cash this check.” What possible reason could we have for refusing that request? The only reason is the risk that the check will be returned unpaid….and with Treasury checks, that could happen years later, or so I’m told.

So in order to perform this very high-risk service, we should demand a high reward. Every single customer will be offered the chance to deposit the check into a new, FREE, checking account (with no fees, not even overdraft fees, thanks to the regulators), and then of course they would have to wait until the new account hold expires. Or at the very least, until the next day for the first $5,000, if it is a cashier’s check. But I think that many of them will choose to pay our “convenience fee,” for the convenience of walking out the door with 90% of their cash in hand instantly, and not having to wait until tomorrow, and not having to ever see us again (until next year). They just don't WANT to have a bank account. Their reasons are many - many of which have nothing to do with any evil Boogeyman in the banking industry - and their reasons are their own and their reasons are valid.

Our “will you cash my check” customers are demanding things we cannot offer:
- Cashback of the entire amount of the initial deposit, or all but $100
- Come back and withdraw the entire amount the next calendar day (Saturday)

This change – the willingness to cash the checks, coupled with a fee to mitigate our risk – would be welcomed, most probably by the unbanked. And what is so UDAPy about catering to the demands of the unbanked? If you all insist, we’ll have every one of them sign a release, “I decline to open a free new account and I just want my money NOW. I am of sound mind and body and I choose to pay a 10% convenience fee in the amount of $_______ (i.e., $300 for $3,000).”

We have GOT to get this country out of the mentality that the government can protect us from everything…because that leads to believing that someone else (regulators, the bankers themselves even!) should make decisions for us consumer-citizens.

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#1518939 - 03/08/11 03:28 PM Re: Tax Refund Checks-charging fees to cash? [Re: Anonymous]
Anonymous
Unregistered


I am a Bank employee We do not cash refunds for non customers the only check cashed for a non customer is a Social security check.
Also if the check is payable to you and your spouse both must be present to cash any refund.
Reason too many divorces too many problems with one getting the check and not the other.

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#1519469 - 03/09/11 01:20 PM Re: Tax Refund Checks-charging fees to cash? [Re: Anonymous]
Anonymous
Unregistered


Why would you cash a SS check and not a tax refund check? They are virtually the same!?

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#1519578 - 03/09/11 02:52 PM Re: Tax Refund Checks-charging fees to cash? [Re: Anonymous]
John Burnett Online
10K Club

Registered: 10/27/00
Posts: 30047
Loc: Cape Cod
In some states, banks have to cash SS and similar checks. Tax refund checks, however, aren't usually included because they aren't regular income.
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John S Burnett
BankersOnline.com

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#1519677 - 03/09/11 04:23 PM Re: Tax Refund Checks-charging fees to cash? [Re: John Burnett]
Anonymous
Unregistered


We don't cash ANY checks for non-customers (unless, of course, the check is "on-us").

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