Moral Dilemma Regarding Banking

[Kay_Cee]

Recently my husband informed me that a check I had written back in February has not cleared our account.

This was a check for $100 I had written to buy scrip from our Catholic school.

I asked the lady in charge of the scrip program to follow up on it for me, and according to her records, the check did clear on her end. So the school did receive the $100.

However, the money has still not been deducted from our account. I heard from her that the same thing happened to a tuition check which was in the same packet.

I figure somewhere someone is out $100, but I have no idea how to pursue this any further. I’m also upset that there is a check with my account number and signature on it floating around somewhere.

What are my moral obligations regarding this situation?

 

[mommyof4]

I would call the bank and explain to them what has happened. Let them follow up on it. Can the person in charge of scrip provide any documentation from her bank that the check has cleared? If so, bring that along with you to the bank.

 

[Kay_Cee]

I would call the bank and explain to them what has happened. Let them follow up on it. Can the person in charge of scrip provide any documentation from her bank that the check has cleared? If so, bring that along with you to the bank.

Which bank? My bank never received the check or it would have cleared, and I would have received the canceled check.

If the school’s bank had the check, they would have sent it to my bank back in February, so they would no longer have it.

But if it was lost somewhere in transit between the two banks, the school’s bank would not have received the funds, so it would have considered my check no good. That is, it would have assumed my check bounced, and the funds would have been deducted from the school’s account. However, that did not happen.

The lady who runs the script program says she used to work for Bank of America, and she has no idea how such a thing could happen. They are still trying to trace it. However, I think my question is what happens if nobody can figure it out? Aren’t checks good for only six months? What happens when the six months runs out? Should I consider myself $100 richer? Am I obligated to give the money to charity?

 

[vern_humphrey]

Which bank? My bank never received the check or it would have cleared, and I would have received the canceled check.

If the school’s bank had the check, they would have sent it to my bank back in February, so they would no longer have it.

The school’s bank paid the check, so call them. Ask them what they want you to do about it.

I’d say call the school’s bank and ask them.

 

[Kay_Cee]

The school is going to follow through with their bank.

My question still remains: what if the six months expire and this is still unresolved? Is the check no longer any good then?

Any banking experts out there?

 

[vern_humphrey]

The school is going to follow through with their bank.

My question still remains: what if the six months expire and this is still unresolved? Is the check no longer any good then?

Any banking experts out there?

Ask the school’s bank – they’re the ones who paid the check.

You do owe them a good faith effort to compensate them. They may ask you to stop payment on your check and issue them another – in which case, you should have the right to deduct any fees relating to the stop payment from the total.

 

[ltbpoe43]

There are millions of checks floating around - some are referred to as “unable to locate” - i.e. it’s been deposited by the school’s bank, considered paid, never returned, and in transit may have been destroyed to such a point as unable to read and thus process further. These are referred to as unable to locate, research is done by hand and if it can’t be conclusively decided as to which account to post it to - it may be written off by the bank holding it (it may be an intermediary - who knows).

There is also the chance the item came through electronically and was not processed as a paper item. So while you are looking for a check number, it may be in the “other debits” section of your statement as an electronically processed check.

You are under no obligation (morally or legally) to do anything. I would leave the debit sitting out there a year. By then if the research folks haven’t located it you can add it back as it has probably written off somewhere.

 

[Kay_Cee]

There are millions of checks floating around - some are referred to as “unable to locate” - i.e. it’s been deposited by the school’s bank, considered paid, never returned, and in transit may have been destroyed to such a point as unable to read and thus process further. These are referred to as unable to locate, research is done by hand and if it can’t be conclusively decided as to which account to post it to - it may be written off by the bank holding it (it may be an intermediary - who knows).

There is also the chance the item came through electronically and was not processed as a paper item. So while you are looking for a check number, it may be in the “other debits” section of your statement as an electronically processed check.

You are under no obligation (morally or legally) to do anything. I would leave the debit sitting out there a year. By then if the research folks haven’t located it you can add it back as it has probably written off somewhere.

Just to be clear–are you saying the check may have been mangled or have water damage to such an extent that it was rendered unreadable?

That might make sense since another check in the same packet has the same problem as mine.

I don’t think, though, that it was electronically processed. Our account balances except for that one check.

 

[rwoehmke]

With the way banks run today, lots of mistakes, but not many compared to the total load, I wouldn’t burn my time and gas unless I was the one out money. You told them once, now let them deal with it. If they figure it out you are even, if not you are up another hundred for the original charity or to line your own pocket. I have gotten to this point with not only banks but other organization like hospitals etc. Tell them once and let go of it unless it is you who are out money. I have even argued with store clerks that they made a mistake and did not charge me what they should have. Their answer,“The computer says otherwise and computers don’t make mistakes.” I know that I am cynical, but I am not going to tie my guts in a knot over someone else’s measly hundred bucks.

 

[Cristiano]

You are under no obligation (morally or legally) to do anything. I would leave the debit sitting out there a year. By then if the research folks haven’t located it you can add it back as it has probably written off somewhere.

I do not think that she has any legal obligation to do anything special but legally and morally she must leave the funds available. She entered in a contract, got some goods out of it, and she is expected to pay.

 

[Kay_Cee]

Well, I want to do the right thing, but I’m not sure what that is.

If the check is lost or destroyed or expired, for all I know the bank may not even be allowed–legally–to take any money from me. I don’t know what the banking regulations are in a case like this.

Is anybody familiar with the regulations regarding this?

 

[YADA]

Here is what I would do…

After making an attempt to track what happened t the original check…with no result…

I would donate $100 to the school or the parish…I would carry the check in my check book for one year from when I wrote the second check [just in case it is found and processed]. I would not complain if the check ever processes [it probably will not] and I also would not care that I donated another $100 if th check ever clears…

I once wrote a car payent that was lost in the mail; although at the time I thought the mail was just slow…When I received my bank statement, I realized that the payment had not been processed. I called the lender, made a payment via the phone [paying and extra fee - so my payemnt would only be the day or so late that is was] I thought the payment would process eventually as the mail was probably just very slow. I carried that extra money in the account for a year and a half…it never processed…after eighteen months, I added in the amount to my running balance…

 

[StCsDavid]

Everything in the banking world is electronic…even your paper checks. They get scanned, and then destroyed or returned to you if you request. It sounds like a computer glitch either from yours or your parish’s bank. If the school says they got their money, I think you’re in the clear as far as any moral issue. I would keep $100 in your account to cover the amount just in case the bank fixes their problem. If it never clears, then you can decide what to do with this blessing. Charity is always a good option.

 

[Kay_Cee]

Everything in the banking world is electronic…even your paper checks. They get scanned, and then destroyed or returned to you if you request. It sounds like a computer glitch either from yours or your parish’s bank. If the school says they got their money, I think you’re in the clear as far as any moral issue. I would keep $100 in your account to cover the amount just in case the bank fixes their problem. If it never clears, then you can decide what to do with this blessing. Charity is always a good option.

If that’s the case, I wouldn’t even know which bank I should give the money to. What a mess!

Thanks to everyone for their terrific advice. I will talk to my husband about the charity option.

 

[Zooey]

The school is going to follow through with their bank.
My question still remains: what if the six months expire and this is still unresolved? Is the check no longer any good then?
Any banking experts out there?

It’s longer than that. I don’t claim to be an expert, just someone who has had the same thing happen. I was told that, after a year, it is safe to use the money, because the check will no longer be honored.
The lady who told me this, worked in a bank for years…She said, the checks usually show up within that time, or else are no longer cashable. But she said that, to be safe, I could leave funds to cover it for another year, since after that, the presumption is , that the check is destroyed.

Well, I want to do the right thing, but I’m not sure what that is.
If the check is lost or destroyed or expired, for all I know the bank may not even be allowed–legally–to take any money from me. I don’t know what the banking regulations are in a case like this.
Is anybody familiar with the regulations regarding this?

I would suggest that you wait a year (see above), & then consider how to go about donating the money to church or charity.
And don’t be too worried about this. It happens more than you might think. (Also from Vicky at the bank! Very nice Christian lady–Baptist–who would no more give unethical advice than she would fly!!)
HTH!!!