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#2239696 - 07/16/20 06:16 PM On Us Check Cashing Practice
Loynograd Offline
100 Club
Joined: Jan 2008
Posts: 124
I wanted to ask the community if the practice described below causes any concern.

A check cashing institution comes into a branch regularly with several NSF checks trying to get paid. Staff checks each check to see if the funds are available. If they are not available, the NSF check (or copy) is given back to the check cashing organization. If funds are available, we charge a fee and issue a cashiers check for the balance.

We do not notate on the check that the account was brought into a branch if we don't pay the item. Also, the member is not charged a second NSF fee. Does anyone believe (as a technically) that these checks as being "presented" more than twice under the UCC, because there is nothing preventing the check cashing business from coming in multiple times with the same NSF check.

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#2239713 - 07/16/20 07:26 PM Re: On Us Check Cashing Practice Loynograd
RR Sarah Offline
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RR Sarah
Joined: Mar 2004
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#2239714 - 07/16/20 07:27 PM Re: On Us Check Cashing Practice Loynograd
Loynograd Offline
100 Club
Joined: Jan 2008
Posts: 124
thank you.

jake

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#2239717 - 07/16/20 07:46 PM Re: On Us Check Cashing Practice Loynograd
madukes Offline
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madukes
Joined: Jul 2009
Posts: 1,463
Flyers Country
I wouldn't consider them coming into a branch and trying to cash the check as a 2nd attempt unless it is paid. If the check is still no good I would think of it more as an inquiry. Just my opinion.

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#2239725 - 07/16/20 08:41 PM Re: On Us Check Cashing Practice Loynograd
BrianC Online
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BrianC
Joined: Nov 2004
Posts: 6,694
Illinois
The limit on the number of submissions relates to submissions through the Fed, other correspondent network or NACHA. If you want to stop wasting your tellers' time, stop doing this.

Quote
If funds are available, we charge a fee and issue a cashiers check for the balance.


The risk you are accepting by converting the check without any assurance that the person in your lobby has the authority to act on behalf of the check casher and I doubt the fee you are charging covers the soft costs of staff time or the risk. If the check casher doesn't want to submit the check via the their bank through the Fed, tell them their other option is to ask their bank to send you a collection letter. You can then charge your collection fee for that service instead of providing free collection services every time they waltz into your lobby.
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