Credit Card Check
Q: This is a new nuisance I've encountered this week and was wondering if other banks are doing the same evil thing. I got a convenience check recently from a credit card. I don't use these often, but have in the past with no difficulty. I decided to take advantage of the special low-interest, no transaction fee check. My bank refused to take it. It took 40 minutes of complaining to get an account rep to call the credit card company to verify that the check was good. My bank's excuse? They say they've experienced alot of fraud with the checks and have decided to stop taking them. I could, of course, do a cash advance with the card but then I'd pay the cash advance fee, and a higher interest rate. I have NEVER bounced a check, my account is in good standing, what right does the bank have to determine they won't take my deposit??? Doesn't the bank take a risk on ANY check regardless of where it comes from that it might bounce, and to protect themselves they have substantial penalties for bouncing a check and overdrawing your account. If this check had bounced, they'd have charged me a few bucks for it, plus $20 for every check that bounced as a result. Plus the issuing bank (the credit card company) would have charged me $20. What's the bank risking? And wouldn't the risk be greater on a personal check from Joe Schmoe than on a check from a well-known credit card company? Has anyone else experienced this?
A: Most credit card companies consider those checks cash advances which means you are still going to pay a higher interest rate eventually. You'd be better off hocking your dog. My bet is that you are already up to your eyeballs in debt and that you will be a 2002 Chapter 7 that the rest of us will have to pay for. I know Netbank won't take them -- but I haven't heard of any others (in particular, any traditional banks) that do this. FWIW, I deposited one (no advance/transaction fees, 9.9% interest) in my "main" checking account a little over a month ago; my bank put the usual 5-day hold for large checks on the check, but they did accept it. (I paid the balance on the credit card off today! If they hadn't accepted it, I would've tried with my other checking account or with my credit union savings account...
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