Profits Over Patrons - Check Cashing
Admittedly, I’ve been out of the loop for quite a while now. For over ten years I have used the same quiet little financial institution (an employer promoted credit union) to conduct all my financial transactions. I have been satisfied by their customer-service and attention to detail ever since joining. Banking, if you want to call it that, was simple, efficient, and without pain or hassle.
Recently, I changed jobs. While I still conduct all my primary banking with my humble little credit Union, I no longer have steady direct deposit into that account. Does my credit union mind? No, they still provide the services I need for the bulk of my savings. I should probably take a second to note that my credit union is in another town and not just a quick drive down the street.
All was well until I began getting checks from individuals and corporations written to me from other financial institutions. Not wanting to drive all the way to my credit union to cash these checks I simply attempted to drop by the local branches of these other financial institutions. To my surprise (remember, I’ve been “out of the loop” for a while) these institutions wanted to charge me to cash checks written from THEIR banks. I was furious. I remember doing odd jobs long ago and stopping by and cashing checks without worry. Times have changed, and I was not happy about it.
Let’s get straight to the point. Banks DO NOT exist to make you money. They exist to make money for themselves. They take your cash and turn it into their profits. This practice of charging non-accountholders fees for cashing checks written from their banks is unconscionable. I totally understand the idea of making a profit, but there is a difference between profit and profiteering.
It is necessary to understand that we are not taking about $2 or $3 charges. It is time to call some of these alleged institutions out. Peoples Bank charges $5 to non-accountholders to cash a check. Chase Bank also charges $5 per check. Don’t worry, it gets better. 5/3 Bank charges $8 to cash a check, and one of the biggest criminals of them all, National City charges $10 PER CHECK to non-accountholders.
It is clear to see that these charges are not even remotely equivalent to the $1 or $2 fees charged by ATM machines. Some ATM machines are privately owned and that is a topic for another time. What we are talking about here could be a substantial portion of the value of the check. Contrary to the banks mantra, it does not cost them anything to cash a check written on one of their accounts. The bank can instantly verify to check and the amount in the account to prevent fraud or loss of funds.
Upon trying to cash one of my checks (ironically written from a major insurance company) I was pulled aside and given a twenty minute spiel about how the bank could SAVE me money if I simply opened an account with them. Then, they told me, they could cash my checks for free. I simply asked them, why should I open an account here and then try to write a check to someone and put that person through the trouble of trying to get it cashed? The dumb blank stare I got in return answered my question.
Banks should not only cash checks from non-accountholders free of charge, but they should try to serve these patrons as potential members of the bank. Going a little further, banks should be legally obligated to cash checks written from their institutions free of charge (with proper identification of course). It would serve any employer well to check into this issue for the checks they write to their employees. Look for a financial institution that is not going to steal from your employees simply because they choose to bank somewhere else. In this age of failing financial institutions some people are even attempting to live a cash-only lifestyle. Total freedom from banks altogether, how beautiful is that?
Recently, I changed jobs. While I still conduct all my primary banking with my humble little credit Union, I no longer have steady direct deposit into that account. Does my credit union mind? No, they still provide the services I need for the bulk of my savings. I should probably take a second to note that my credit union is in another town and not just a quick drive down the street.
All was well until I began getting checks from individuals and corporations written to me from other financial institutions. Not wanting to drive all the way to my credit union to cash these checks I simply attempted to drop by the local branches of these other financial institutions. To my surprise (remember, I’ve been “out of the loop” for a while) these institutions wanted to charge me to cash checks written from THEIR banks. I was furious. I remember doing odd jobs long ago and stopping by and cashing checks without worry. Times have changed, and I was not happy about it.
Let’s get straight to the point. Banks DO NOT exist to make you money. They exist to make money for themselves. They take your cash and turn it into their profits. This practice of charging non-accountholders fees for cashing checks written from their banks is unconscionable. I totally understand the idea of making a profit, but there is a difference between profit and profiteering.
It is necessary to understand that we are not taking about $2 or $3 charges. It is time to call some of these alleged institutions out. Peoples Bank charges $5 to non-accountholders to cash a check. Chase Bank also charges $5 per check. Don’t worry, it gets better. 5/3 Bank charges $8 to cash a check, and one of the biggest criminals of them all, National City charges $10 PER CHECK to non-accountholders.
It is clear to see that these charges are not even remotely equivalent to the $1 or $2 fees charged by ATM machines. Some ATM machines are privately owned and that is a topic for another time. What we are talking about here could be a substantial portion of the value of the check. Contrary to the banks mantra, it does not cost them anything to cash a check written on one of their accounts. The bank can instantly verify to check and the amount in the account to prevent fraud or loss of funds.
Upon trying to cash one of my checks (ironically written from a major insurance company) I was pulled aside and given a twenty minute spiel about how the bank could SAVE me money if I simply opened an account with them. Then, they told me, they could cash my checks for free. I simply asked them, why should I open an account here and then try to write a check to someone and put that person through the trouble of trying to get it cashed? The dumb blank stare I got in return answered my question.
Banks should not only cash checks from non-accountholders free of charge, but they should try to serve these patrons as potential members of the bank. Going a little further, banks should be legally obligated to cash checks written from their institutions free of charge (with proper identification of course). It would serve any employer well to check into this issue for the checks they write to their employees. Look for a financial institution that is not going to steal from your employees simply because they choose to bank somewhere else. In this age of failing financial institutions some people are even attempting to live a cash-only lifestyle. Total freedom from banks altogether, how beautiful is that?