Personal Finance

Scotiabank holding a certified cheque

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  • Jan 29th, 2012 8:22 pm
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Aug 1, 2008
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dalmarinahaven wrote:
Jan 27th, 2012 11:54 am
I already have account at that particular bmo branch, I am contracter so (the contracted) pay only by cheque for locked fee of $1000 every week, not really content paying $40 but better than a bank to sit my funds 5 business days.

Well if you're already at the issuing branch then save yourself $25 by getting the cheque certified. Then just deposit the certified
cheque into your own account. Hopefully BMO won't hold certified cheques written from their own branch ;) (ask before you do this)
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Jan 23, 2012
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SpillOnAisle9 wrote:
Jan 27th, 2012 12:01 pm
Well if you're already at the issuing branch then save yourself $25 by getting the cheque certified. Then just deposit the certified
cheque into your own account. Hopefully BMO won't hold certified cheques written from their own branch ;) (ask before you do this)

TD issue it, can BMO certify it? Or do i have to certify at TD and cash in at bmo? Its confusing realy.
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dalmarinahaven wrote:
Jan 27th, 2012 12:13 pm
TD issue it, can BMO certify it? Or do i have to certify at TD and cash in at bmo? Its confusing realy.

TD will certify. But why not just go to TD and cash it? No point paying the huge fee for a certified cheque when you can pay less and walk out with CASH. Generally, certified's are for businesses (like liquor distributors, appliance companies) who've had issues with funds being good from clients. Or it's for a mortgage down payment etc.
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dalmarinahaven wrote:
Jan 27th, 2012 12:13 pm
TD issue it, can BMO certify it? Or do i have to certify at TD and cash in at bmo? Its confusing realy.

No no no...you said "I'm already at the issuing branch" so I thought you had an account at the same branch as the
company writing you the cheque.

You can certify anybody else's cheque by going to the branch it was written at and paying the fee. If you have an account
at that branch then you can do what I said. The problem is when you go to another bank/branch then you have the same
trust issue as ScotiaBank has with the OP's cheque. But a branch should trust it's own certification.

If the $40 is pissing you off that much then go open an account at the same branch as where your cheque is coming
from
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SpillOnAisle9 wrote:
Jan 27th, 2012 12:20 pm
No no no...you said "I'm already at the issuing branch" so I thought you had an account at the same branch as the
company writing you the cheque.

You can certify anybody else's cheque by going to the branch it was written at and paying the fee. If you have an account
at that branch then you can do what I said. The problem is when you go to another bank/branch then you have the same
trust issue as ScotiaBank has with the OP's cheque. But a branch should trust it's own certification.

If the $40 is pissing you off that much then go open an account at the same branch as where your cheque is coming
from

This ^. That's what I said ealier :razz:

Keep it simple. Do you personal banking at the same branch location your employer does. Most employees working there are typically familiar with the usual businesses that write payroll cheques.
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jacksorbetta wrote:
Jan 27th, 2012 12:23 pm
This ^. That's what I said ealier :razz:

Keep it simple. Do you personal banking at the same branch location your employer does. Most employees working there are typically familiar with the usual businesses that write payroll cheques.

Correct....but a lot of people don't know that they can just certify somebody else's cheque by showing up at the issuing
branch and paying the fee. I learned this one from my sister (ex-ScotiaBank teller) when her daughter's employer kept
bouncing my niece's payroll cheques.

But yeah...I hadn't thought of just taking the cash...he doesn't have to actually open an account there
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fieldhousehandyman wrote:
Jan 27th, 2012 5:39 am
Wrong

A certified cheque means the funds are removed from the account and placed on the instrument itself essentially. It guarantees to the recipient that (if real) the cheque cannot be returned NSF, as is the case with a non certified cheque.

But like anything else, they can, and are, forged.
My point was that they're both just pieces of paper and they both need to be cleared by the bank.
jacksorbetta wrote:
Jan 27th, 2012 11:20 am
Certified cheques are regular person/business cheques with account holder signature, plus a bunch of bank stamps, siggies, Protectograph etc. They are a PITA to do, expensive (around $15 for non-account holders). The reason it's more work is the amount of tracking it. Some banks forward copies of the transaction receipt and the actual cheque to their clearing dept. It's much easier to request a draft. But either way, the funds are like cash once processed.
In my eyes the only difference between the two, is that certified cheques get cleared with a higher priority, but my point was that, they still need to be cleared. Just because it's a certified cheque doesn't mean it makes it somehow magical and equal to cash.
it's me ramin.
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ksgill wrote:
Jan 27th, 2012 9:26 am
+1

Following yupkime and B0000rt's logic, they should hold anything but cash for everyone. The truth is that most cheques, drafts etc can be faked. Now, assuming that the Banks want to protect themselves, they should place holds on ALL deposits like that. Why are certain people given preferential treatment based on their 'relationship', that is what I think BS is (think about Madoff's relationship with his bank, I am sure they cleared his cheques right away?).

I deposited a cheque from my ING Direct account into RBC through teller around 2 PM in the afternoon and it cleared my ING account at 10 AM next morning. If the banks want, that is how fast things clear but because of their archaic practices, there is a 5 day hold placed (why 5 days? shouldn't it be "As soon as the cheque clears?").

And don't get me started with TD as when I deposited a USD cheque from Questrade, they put a 30 day hold on it because it was a USD cheque. They cleared it right away after I created a fuss. Re-tards.

It's the amount of risk the banks perceive. Dude, the whole market works on risk. Banks don't want to lose customers also right? One bank can say "we clear cheques in only 4 days!" and use that as a marketing tool. Imagine the OP's bank stonewalls him/her and only allows a 5 day hold on the cheque. Do you think he/she will want to stay a customer of the bank? Probably not. I'd pack up and leave. Sure Madoff, but that's a once in a lifetime event, if the banks protected themselves from these situations, they'd probably not even go into business.

There's alot of stupid **** that goes on in the retail banking industry... I did a wire transfer from TD CT to TD Bank in the states. Get this, the bank of correspondence between the two is BofA, which skimmed a $10 fee off the transaction. I don't see why TD CT and TD Bank aren't directly linked.
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B0000rt wrote:
Jan 27th, 2012 3:06 pm
It's the amount of risk the banks perceive. Dude, the whole market works on risk. Banks don't want to lose customers also right? One bank can say "we clear cheques in only 4 days!" and use that as a marketing tool. Imagine the OP's bank stonewalls him/her and only allows a 5 day hold on the cheque. Do you think he/she will want to stay a customer of the bank? Probably not. I'd pack up and leave. Sure Madoff, but that's a once in a lifetime event, if the banks protected themselves from these situations, they'd probably not even go into business.

There's alot of stupid **** that goes on in the retail banking industry... I did a wire transfer from TD CT to TD Bank in the states. Get this, the bank of correspondence between the two is BofA, which skimmed a $10 fee off the transaction. I don't see why TD CT and TD Bank aren't directly linked.

While I agree with some of what you said above, my point is that cheques clear a lot faster than 5 days or 4 or 3. These banks harass customers for no reason just to hold their money. I deposited a cheque from ING Direct into RBC at 2 PM and it was withdrawn at 10 AM next day - so, less than 24 hours. Worst case scenario is 2-3 days, not 5. I repeat, it's bullpoop.
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ksgill wrote:
Jan 27th, 2012 3:20 pm
While I agree with some of what you said above, my point is that cheques clear a lot faster than 5 days or 4 or 3. These banks harass customers for no reason just to hold their money. I deposited a cheque from ING Direct into RBC at 2 PM and it was withdrawn at 10 AM next day - so, less than 24 hours. Worst case scenario is 2-3 days, not 5. I repeat, it's bullpoop.

Maybe the Teller was just covering her own ass and it would clear in less than 24 hours?
it's me ramin.
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http://www.fin.gc.ca/n11/11-022-eng.asp

Toronto, March 8, 2011
2011-022
Harper Government to Further Strengthen Protection for Canadian Consumers of Financial Products and Services

Related Documents:

Backgrounder: Access to Funds Regulations and Negative Option Billing Regulations
Access to Funds Regulations
Negative Option Billing Regulations

The Honourable Ted Menzies, Minister of State (Finance), and the Member of Parliament for Lévis–Bellechasse, Steven Blaney, today announced the Harper Government is taking decisive action to protect the interests of Canadian consumers of financial products and services.

“The economy remains our government’s top priority,” said Minister Menzies. “We’re protecting Canadian consumers by banning negative option billing for financial products, ensuring greater transparency and making sure consumers have timelier access to their own hard-earned money.”

The Access to Funds Regulations would reduce the maximum cheque hold period for consumers and small- and medium-sized enterprises. The maximum hold period is currently seven business days for all cheque amounts. This would be reduced to four business days for cheques of $1,500 or less. The regulations would also provide consumers with immediate access to the first $100 deposited by cheque.

The Negative Option Billing Regulations would require federally regulated financial institutions to obtain consumers’ express consent before providing a new optional product or service. Consumers would receive in advance a summary of key information, including related fees and costs, before granting their express consent. The regulations would also prescribe additional disclosure when a consumer agrees to an optional product or service, and require financial institutions to refund charges on a prorated basis following cancellation.

“These measures will give Canadians more freedom and information to effectively manage their personal finances,” said Mr. Blaney.

Lower-income seniors, Canadians without significant balances in their accounts, younger Canadians who do not have a long banking history, and people who receive cheques from newer employers or clients are often subject to longer cheque hold periods. These are often the Canadians who most need quick access to their funds.

“The action our government is taking today will protect Canadians and their families from unexpected costs and provide clear information to help them make the right financial decisions,” added Minister Menzies.

The regulations will be published in the Canada Gazette on March 12 for a 30-day comment period. Contact information for forwarding comments is provided with the proposed regulations.

For further information, media may contact:

Annette Robertson
Press Secretary
Office of the Minister of Finance
613-996-7861

Jack Aubry
Media Relations
Department of Finance
613-996-8080
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Jan 23, 2012
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If the cheques cant clear within 24 hrs its nothing.
4 days is still tooo muuuch to acces your own funds.
Unless government doesnt force banks to bring new verification system its nothing but archivezed banking will continue forever.
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ksgill wrote:
Jan 27th, 2012 3:20 pm
While I agree with some of what you said above, my point is that cheques clear a lot faster than 5 days or 4 or 3. These banks harass customers for no reason just to hold their money. I deposited a cheque from ING Direct into RBC at 2 PM and it was withdrawn at 10 AM next day - so, less than 24 hours. Worst case scenario is 2-3 days, not 5. I repeat, it's bullpoop.

The reason the length of the hold is for insurance purposes (won't cover if hold is removed early, for example). So, the cheque clears in 24hrs, right? What happens when you deposit a cheque for $1,000 andthey put it on hold for 24 hours, and it clears. On day 3-4 the issuer calls in that the cheque was forged. You as a bank just lost $1,000.

If you don't have enough money to cover the cheque, don't complain about hold policies. Period. Everybody thinks the banks are trying to inconvenience them and be bullies, when really not everybody is as honest as you are. It's simple risk management, they 'lose' millions a year to fraud. Why? For your convenience.
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Mar 7, 2003
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one realizes how stupid Canadian banks and their outdated methods really are when one banks in another country...
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I deposit everything through the ATM at TD. They never hold a penny. Even when I deposited a large certified cheque from the sale of my home, all funds were available instantly.
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