| Title: | DCU |
| Notice: | 1996 BoD Election results in 1004 |
| Moderator: | CPEEDY::BRADLEY |
| Created: | Sat Feb 07 1987 |
| Last Modified: | Fri Jun 06 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 1041 |
| Total number of notes: | 18759 |
As you open your next DCU mailing, look for an enclosure on check
endorsements. Somebody (in Congress) is having pipe dreams! The
text follows the form feed.
"The Funds Availability Act passed by Congress has greatly changed the
way checks are processed through the Federal Reserve System."
"Beginning September 1, 1988, financial institutions are under strict
regulations on where endorsements may be placed."
"This affects {bold}YOU, too."
"The new law requires that all payee endorsements {bold}(YOURS) must be
within 1 1/2" of the {bold}TRAILING EDGE of the check."
"The {bold}TRAILING EDGE is the {bold}LEFT edge as you look at the
{bold}FRONT of a check. Use that same edge on the back of the check to
determine your endorsement area."
{front}
_______________________________________________________
| Joe Smith 099 |
| 9 Mary Street |
| Sometown, USA |
| |
| {check amount, date, payee goes here} |
| |
| DCU |
| memo:____________ ________________________ |
| {electronic bank numbers} |
|_______________________________________________________|
^
|
+-- Trailing edge
|
| {back}
v_______________________________________________________
| | |
| | |
|<-- 1 1/2"-->| |
| | |
| | |
| | |
| | |
| | |
| | |
|___^_________|_________________________________________|
|
|____ Your endorsement must be within this area.
"The limited endorsement area must {bold}ALSO be used for the
following:
1) Subsequent endorsements {explanatory text deleted}
2) Identification information {explanatory text deleted}"
"If you put {bold} ANYTHING outside of the 1 1/2" limit. it may cause
the check to be returned."
"This new law is causing major changes within the financial industry,
and we hope we can count on your help to meet all of the new
requirements."
"Please stop in and visit with any our customer service representatives
for further information."
There is (God forbid) some logic to what is being requested, (clearer
bank endorsement area, fewer read errors, etc.). I can just see some
poor person who finally gets that important (lets say tax refund) check
and endorses it incorrectly (that will be a neat trick to clear up with
the IRS) and needs the payer to issue a new check!
Then there are those stores that have an identification information
collection stamp that covers half the check. Who pays the $12.00 DCU
returned check fee if your payee does not meet the requirements (you,
DCU or payee)?
Carl Leeber
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 119.1 | What next? | KYOA::KOCH | Any relation?... | Fri Aug 26 1988 13:08 | 18 |
v_______________________________________________________
| | |
| | |
|<-- 1 1/2"-->| |
| | |
| | |
| | |
| | |
| | |
| | |
|___^_________|_________________________________________|
|
|____ Your endorsement must be within this area.
Good drawing, by the way! Does this mean that they are going to
create an endorsement area on the back of the check so we know where we can
write? Naw, too simple a solution...
| |||||
| 119.2 | Its started already... | FACVAX::GRAHAM | Dr. John | Fri Aug 26 1988 13:50 | 9 |
This explains something I've seen recently. I've received a few
checks recently from my broker and some refund checks from various
businesses and on the back of the check, this "endorsement" area
is left blank; where the rest of the area has some sort of colored
pattern.
Personally, I always endorse my checks in that area anyway so, NBD!
John G.
| |||||
| 119.3 | ?? a plot ?? | NQOAIC::FOREMAN | Fri Aug 26 1988 14:42 | 4 | |
I'm not positive about this, but as I recall the Government checks
you receive for IRS refunds have a printed line for endorsement
that is definitely not in the top left 1 1/2 inch. Could this be
a government plot to quit cashing your refund check ???
| |||||
| 119.4 | BAGELS::GLENN | Glenn Christensen, SCS/NSD, Dtn:226-5553, Loc:LKG2-A/W2 | Tue Aug 30 1988 10:07 | 13 | |
re: .3 Nope. Just a way to further government spending. They'll
have to have new checks printed!
You are right that they do have the printed line for endorsement
on the RIGHT side on tax return checks. It always confused me because
I was taught to endorse on the left.
If I had to make a guess, I would say they were going to print bar
codes or something on the back to process checks faster thru the
reserve.
| |||||
| 119.5 | TOKLAS::FELDMAN | PDS, our next success | Tue Aug 30 1988 12:00 | 10 | |
There was an article on this in the Globe last week. I think it
was in the Thursday issue, in the Money section. As I recall, it
said that at least one Boston area bank would change their checks
to show the appropriate area on the backs. It also said the reason
was because the Federal Reserve was trying to use optical character
recognition technilogies to read the bank's endorsement, which requires
that the bank's endoresement area (the rest of the check) be free
from user scribbles.
Gary
| |||||
| 119.6 | DCU Official Response | TSE::LEEBER | Nobody Asked, Just My Opinion! | Fri Sep 16 1988 12:17 | 139 |
This is an official response by Mary Madden of the DCU. The portion of
that response, dated 15-SEP-1988, that applies to this note topic is
included below. See note 2.22 for more information.
Whether you agree or disagree with the response from the DCU, please
either direct your comments to the DCU directly (dtn-223-6735) or
post your comments as a REPLY to this entry in this conference.
Carl Leeber
******************************************************************************
******************************************************************************
4. Federal Regulation CC
On September 1, 1988, Federal Regulation CC (Funds
Availability Act) became effective. This regulation affects
DCU's policies regarding check holds, check cashing and
deposits. The following are questions and answers which will
demonstrate how you'll be affected by this law. If you have
any questions, please call your nearest branch office or me at
DTN/223-6735 ext. 239.
Q1. If you present several checks totaling $100 or less, will
DCU cash them?
A. Yes, the teller may cash checks up to $100.00 per
maker--not to exceed $500.00 in total cash. For example,
if you present three checks:
(1) from Joe Smith in the amount of $25.00
(1) from Sue Smith in the amount of $40.00
(1) from John Smith in the amount of $35.00
You may cash all three. However, if a member presents
five (5) $100.00 checks from the same account, you may
only cash one $100.00 check.
Q2. If the branch knows you or recognizes the local company
check which you've been cashing or depositing for years,
does the teller have to place holds on the check?
A. Yes, under Federal Regulation CC, members must be treated
the same. The only exception to this rule is if the
teller chooses to extend the hold policy.
Q3. Will DCU make an exception for a DCU employee?
A. No, regardless of employer, each member is treated the
same.
Q4. Can I cash a $500.00 personal check?
A. No, the member must deposit the $500.00 check. The
following business day, they will have access to $100.00
of the $500.00 deposited. However, if the member has
sufficient funds in his/her account they may withdraw
$500.00 after placing a hold on the new check.
Q5. Will a hold be placed on a CD or RSVP deposit?
A. Yes, because the member could close the CD or RSVP
account the next day before DCU knows if the check used
to open the account will clear.
Q6. Can I cash a DCU draft?
A. Yes, if the funds are available, you may receive up to
$500.00 in cash.
Q7. Will there be a hold on a cashier's check which has been
endorsed "pay to the order of....?
A. Yes, all third party checks must be deposited in full and
the appropriate hold placed. The only exception will be
a DCU treasurer's check.
Q8. What is a Digital Equipment Corporation check?
A. Digital Equipment Corporation (DEC) checks include
Digital payroll, petty cash, relocation/Home equity,
investor service, Metpay and John Hancock checks.
These types of checks are not held.
Q9. What is meant by a corporate payroll check?
A. To qualify as a corporate payroll check, the check must
include the following:
The issuing company must have clearly printed "Inc.,
LTD., or Corp." as part of it's name.
The check must be clearly marked as a "payroll check"
or a paystub must be attached to the check.
Q10. Will DCU accept a check improperly endorsed?
A. No, all checks must still be properly endorsed by all
payees.
Q11. Will DCU accept a check which is endorsed in the wrong
place on the back of the check?
A. If the collectability of the check is questioned, it is
up to the branch manager as to whether or not the check
will be accepted.
Q12. Your husband or wife are joint on an account, and your
husband or wife brings in your paycheck, will we cash
it?
A. Yes, DCU will cash the check. The same is true for any
two people (boyfriend/girlfriend, mother/daughter, etc.)
joint on an account. We will also allow one member to
cash another member's DIGITAL paycheck as long as it is
properly endorsed by both parties. For example, if a DEC
manager has his/her secretary cash his/her paycheck, we
will allow this, provided the paycheck is properly
endorsed.
Q13. If you present a check for $500. You want $100 to be
deposited into five different share accounts. Will that
check be held? How much will be available the following
day?
A. Yes, the check will be held. Under DCU's check hold
policy, members will only be allowed to "split" their
deposits between TWO share accounts (may be two members).
The system will make $100 available per suffix the
following business day.
Q14. Why has the maximum check amount members can cash
decreased from $500.00 to $100.00?
A. Under Federal Regulation CC, DCU has lost our
discretionary ability. For instance, in the past DCU was
able to set policy on check cashing amounts on an
individual basis. Though we typically wouln't have held
checks for $500, we had the ability to do so without
written notification to the member. Now, however, each
member must be treated the same or notified in writing if
a hold is extended.
| |||||
| 119.7 | BINKLY::WINSTON | Jeff Winston (Hudson, MA) | Sat Sep 17 1988 16:52 | 5 | |
My branch manager commented that if your friendly teller waived a hold rule for you cause she knew you, but not for the guy behind you, he could sue that he was being discriminated against. "One must be careful what one asks for, occasionally, one gets it" | |||||
| 119.8 | Signature area to be called out | FSHQA2::CGIUNTA | Fri Sep 30 1988 09:37 | 7 | |
I just got new checks for a new account I opened at another bank.
The first page of the checks explains where to sign, and says that
my checks may or may not (they don't) have the signatory area marked,
and that in the future, checks will be printed with the area called
out. They are waiting for the Federal Reserve System to do something
(I can't remember what), and then all checks will be printed this
way.
| |||||