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Ever heard of a bank refusing to pay an "on us" check to a non-customer
Posted on 10/28/20 at 10:54 am
Posted on 10/28/20 at 10:54 am
Had someone come into the office. Unrelated to the office visit, she had a royalty check drawn on J P Morgan Chase bank. She is not a customer of the bank, and they would not cash the "on us" item.
I have never seen a bank refuse to cash a check to a non-customer if the check on them. At one time, it would be a wrongful dishonor to refuse but Federal law has pre-empted some of the state negotiable instruments laws.
Anyone else heard of this? Thanks.
10
Posted on 10/28/20 at 10:55 am to chinhoyang
Yes, it's very common these days. Regions will not do it either.
Posted on 10/28/20 at 10:59 am to chinhoyang
The ones that will do it charge a good bit to do it too.
Posted on 10/28/20 at 11:01 am to chinhoyang
She may be leaving out some details. Typically the non customer needs to have more than one form of ID, so if she didn't have that, they can deny her.
Also, was the check an official or cashier's check or an on us item check form a personal or business account holder? If from a person or business, it's possible the funds we not good or the check had a stop payment on it, so she was denied. Curious what she meant by an "on us item,' and if she meant an official check vs an account holder's check.
Also, was the check an official or cashier's check or an on us item check form a personal or business account holder? If from a person or business, it's possible the funds we not good or the check had a stop payment on it, so she was denied. Curious what she meant by an "on us item,' and if she meant an official check vs an account holder's check.
Posted on 10/28/20 at 11:03 am to chinhoyang
a friend went through Iberia bank to cash a check he had received from an Iberia bank customer and he was charged $7 to cash it
Posted on 10/28/20 at 11:05 am to chinhoyang
I'm pretty old and I have never heard of the term "on us" when referring to checks. Y'all seem to be familiar with it. WTH does it mean?
Posted on 10/28/20 at 11:07 am to chinhoyang
This seems like a check draw on a commercial account and it's common for noncustomers who present these type of checks. If it was a personal check then it would not be a problem as long as the funds are available, they show 2 forms of ID, and they'll get charged a check cashing fee. A customer would not get charged this fee.
This post was edited on 10/28/20 at 11:08 am
Posted on 10/28/20 at 11:09 am to johnnydrama
"On us" means it is a check drawn on that bank.
In this case, Exco wrote a royalty check on JP Morgan Chase Bank refused to cash the check. Years ago (when I taught an American Institute of Banking class on negotiable instruments, this would clearly be a wrongful dishonor (as would charging a fee to cash it).
But, Federal law has pre-empted a lot of state laws.
In this case, Exco wrote a royalty check on JP Morgan Chase Bank refused to cash the check. Years ago (when I taught an American Institute of Banking class on negotiable instruments, this would clearly be a wrongful dishonor (as would charging a fee to cash it).
But, Federal law has pre-empted a lot of state laws.
Posted on 10/28/20 at 11:10 am to chinhoyang
Several reasons-
1.) Lack of identification. Only 1 form vs 2. Sufficient ID as well. Sometimes a state ID or passport only won't count.
2.)the check can still be fake. Just bc it's "on us" they may need to verify with the account holder they wrote they check. In this event a non customer didn't deposit in their bank but came to Chase thinking it would be easy. Bank's are seeing more counterfeit and fraud for exactly this reason. The non customer doesn't even have a bank account. Why?
3.) commercial account- May often require authorization release
1.) Lack of identification. Only 1 form vs 2. Sufficient ID as well. Sometimes a state ID or passport only won't count.
2.)the check can still be fake. Just bc it's "on us" they may need to verify with the account holder they wrote they check. In this event a non customer didn't deposit in their bank but came to Chase thinking it would be easy. Bank's are seeing more counterfeit and fraud for exactly this reason. The non customer doesn't even have a bank account. Why?
3.) commercial account- May often require authorization release
Posted on 10/28/20 at 11:10 am to LSUBanker
quote:
This seems like a check draw on a commercial account and it's common for noncustomers who present these type of checks. If it was a personal check then it would not be a problem as long as the funds are available, they show 2 forms of ID, and they'll get charged a check cashing fee. A customer would not get charged this fee.
This was my thought. Now, a mystery. The bank endorsed the check then cancelled the bank's endorsement.
Posted on 10/28/20 at 11:11 am to chinhoyang
Solid investigation into the issue. 
Posted on 10/28/20 at 11:13 am to LSUBanker
I write checks from a Bank that was bought out. I often wonder if someone had to cash a check could they even realize what bank to go to? And would the bank cash it?
Bank to bank is no issue because routing and account numbers are the same. Just the check says the old bank name that no longer exists.
Bank to bank is no issue because routing and account numbers are the same. Just the check says the old bank name that no longer exists.
Posted on 10/28/20 at 11:14 am to LSUBanker
quote:
LSUBanker
Apparently, it is EXCO who set up their account so that non-customers cannot cash one of their royalty checks. I assume it is some type of fraud protection.
Posted on 10/28/20 at 11:31 am to chinhoyang
The only way she would be denied is if the check’s account had issues, i.e. fraud, lack of funds, stop payment, etc. She would however have to pay a massive fee.
This is why everyone should bank local.
I’ve done both. Community banks are far superior and have all the bells and whistles the big banks have.
This is why everyone should bank local.
I’ve done both. Community banks are far superior and have all the bells and whistles the big banks have.
Posted on 10/28/20 at 11:31 am to LSUBanker
Banks always make money. You charge the fee because you can....not because it costs you any more to process said check.
Posted on 10/28/20 at 11:36 am to chinhoyang
quote:
chinhoyang
Thanks for the explanation.
Posted on 10/28/20 at 11:37 am to pwejr88
quote:
The only way she would be denied is if the check’s account had issues, i.e. fraud, lack of funds, stop payment, etc. She would however have to pay a massive fee.
I forget the specifics, but a few years ago I had an expense check from my employer. Employer banks with Regions and the branch he uses is literally right next to our office. I got the check the day I was leaving for vacation and went to cash it to have cash for the vacation. I don't have an account with Regions and they refused to cash it. Blew my mind. Maybe she mentioned there being a check cashing fee, I don't remember. I just remember being floored they wouldn't honor a check written on one of their accounts, and an account they'd had a long relationship with right next door to them.
Posted on 10/28/20 at 11:38 am to The Spleen
Regions blows even more, these days.
This post was edited on 10/28/20 at 11:39 am
Posted on 10/28/20 at 11:39 am to chinhoyang
quote:
chinhoyang
quote:
Apparently, it is EXCO who set up their account so that non-customers cannot cash one of their royalty checks. I assume it is some type of fraud protection.
Posted on 10/28/20 at 11:42 am to chinhoyang
quote:was that before or after the train ride?
Years ago (when I taught an American Institute of Banking class on negotiable instruments, this would clearly be a wrongful dishonor (as would charging a fee to cash it).
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