Situations of Cashing/Deposit Checks & Kiting

Answered by:

Question:

I am wondering if the following situation is considered kiting. A customer works for local grocery store. The customer writes checks to the grocery store and cashes them, then brings the cash to deposit into her account to cover check written the day before.

Answer:

Yup, typical cash kite if they don't have funds in their account to cover the check to begin with.

First published on BankersOnline.com 9/24/12