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#463742 - 11/30/05 03:02 PM Reg CC and Credit Card Checks
Bagweaver Offline
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SW GA
Credit card checks are subject to Reg CC requirements and should be treated as "regular" checks, correct?
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#463743 - 11/30/05 03:50 PM Re: Reg CC and Credit Card Checks
Elwood P. Dowd Offline
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Next to Harvey
Yes, it's either local or nonlocal and you do not have reasonable cause to doubt its collectibility just because it s a credit card check.
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#463744 - 11/30/05 03:50 PM Re: Reg CC and Credit Card Checks
ThePaul Offline
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Dallas, TX
Yep, and at my bank we basically always put a hold on them due to their high chance to come back if the person is over their credit line. Also, lots of credit card companies only allow a portion of a credit line available through access checks and the person writing the check often doesn't realize that.
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#463745 - 11/30/05 03:52 PM Re: Reg CC and Credit Card Checks
ThePaul Offline
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oh and in response to ken's post, we just put case by case holds on them for that reason
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#463746 - 11/30/05 06:53 PM Re: Reg CC and Credit Card Checks
RVFlyboy Offline
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You do know, of course, that most of these checks that do come back as returned items do so well beyond the expiration of any case-by-case hold, right? In other words, I doubt you are gaining any protection by placing the case-by-case holds. Depending on the customer relationship, consider refusing these for deposit or sending for collection as other options with more protection for you. Of course, if it is a good customer who generally has balances that would cover the return, you may be OK taking the risk.
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#463747 - 12/05/05 06:26 PM Re: Reg CC and Credit Card Checks
ThePaul Offline
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Dallas, TX
Well, I'd agree with you that it would be better to just not take these checks for deposit since the customer could easily just call the CC company and have them deposit it as an ACH. The problem though is that my supervisors (I'm just a teller) would not necissarily back me up on turning away a customer when it is not bank policy to not accept cc checks. Since I wouldn't usually have any reason that I could use an exception hold, a case-by-case hold is all I can really do. You're right that it would not likely clear before the hold is up, but the customer likely does not know that and when I tell them that I am putting a hold on it they may decide not to do the transaction if they know it won't clear.
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#463748 - 12/05/05 07:58 PM Re: Reg CC and Credit Card Checks
John Burnett Offline
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This points up a ticklish issue -- bank policy. I think that it's really important for front-line folks like you, ThePaul, to follow bank policy when dealing with Regulation CC. Not every bank's policy is perfect, for certain, but a practical person recognizes who signs the paycheck.

That said, if you feel your bank's policy is in need of change, I'd recommend you "go through channels" (after you figure out what they are!) to have management review what you think is a problem. And if you feel something has to be handled outside of policy, don't make that decision yourself. Get a manager to buy into the exception. He or she gets paid to make that kind of call. You probably don't on the front line.

And for Pete's sake, don't let me here you say "I'm just a teller" again! Most banks would be in pretty sad shape if it were not for their tellers. Your bank values you and your job more than you know.
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