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#1479153 - 12/10/10 06:32 PM Collections
H Cody Offline
Junior Member
Joined: Aug 2004
Posts: 49
Due to the recent waive of counterfeit checks, we are trying to come up with alternate ways to protect ourselves. Two day holds are just not cutting it! Two ideas have been presented to me and I want your opinion:

#1 - instead of sending the check for collection and having the customer wait 2-3 weeks for the return of a CC or the check back -- have the customer sign a document "requesting" a longer hold on the check than is allowed by regulation. This will save the customer the collection expense and hopefully get their money quicker.

#2 - take the check for collection, but send it through electronically. Deposit to a bank GL and send it out like all other checks go out. Is this allowed? Wait 5-6 days and if no return, then deposit the funds to the consumer's account.

What is the down side of either of these? Please?

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Operations Compliance
#1479578 - 12/13/10 03:30 PM Re: Collections H Cody
Georgia Plum

When you deposit the check, even though it may not come back in 5-6 days, it still could. On these counterfeit checks, I don't think you can hold them long enough. We've had them come back weeks later. The only sure way to have good/safe funds is to enter for collection or contact the bank directly (not the number on the check itself) to see if it is a valid cashiers check.

I don't think the customer can 'waive' the Reg CC requirement, however, they could deposit into a savings product and it could be hold longer if you've allowed in your funds availability policy.

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#1479912 - 12/13/10 09:08 PM Re: Collections
RBanker Offline
Power Poster
Joined: Jul 2003
Posts: 2,675
Austin Texas
Some questions -

Where are these counterfeit checks posting - specific customers, internal bank accounts, or all over the board.

If specific customers (close and open a new account), if internal bank accounts (Positive Pay comes to mind), if all over the board (as hokey as it sounds - teller training and teller work review process) are some suggestions......OR review your Funds Availability Policy -

Also, review your daily reports - do you have an uncollected funds report - having someone monitoring and reviewing deposits might not hurt either. Have someone at each branch do it so they can learn what to look for when the deposits come in.
My comments are absolutely no reflection of, nor influenced by, my employer - take them at your own risk.

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