Bank dishonors their own draft

[logos]

I presented to CHASE bank today a check for 25.00 USD drawn on them and they flat-out refused to honor it. Their dishonor was not due to NSF, invalid ID, etc. They said it's their policy to dishonor them if presented by a non-customer (in person), though they do honor them if presented by a bank. I tried to tell them they have a fiduciary obligation to honor it and that duty is not dependent on the holder being a customer, etc. They invited me to call their executive branch in New York.

Even if one gets a notary to memorialize their dishonor, how much recourse does one really have? How would one go about nailing them?

[macerico]

Originally Posted by logos

I presented to CHASE bank today a check for 25.00 USD drawn on them and they flat-out refused to honor it. Their dishonor was not due to NSF, invalid ID, etc. They said it's their policy to dishonor them if presented by a non-customer (in person), though they do honor them if presented by a bank. I tried to tell them they have a fiduciary obligation to honor it and that duty is not dependent on the holder being a customer, etc. They invited me to call their executive branch in New York.

Even if one gets a notary to memorialize their dishonor, how much recourse does one really have? How would one go about nailing them?

Welcome to my world one year ago.

Except, the bank would not honor the check unless I paid a fee for cashing it.

Totally illegal, but you have no real option EXCEPT try reporting them to state/federal agencies. They did nothing for me since the bank said it would "honor" the check if I paid them a fee to do their duty. In your case, I'm pretty sure they cannot refuse an in-person presentment.

It's all a push to make us go cashless. Nothing more.

[Judge Roy Bean]

Unfortunately, it's not illegal for them to jerk people around like this. If memory serves, there was a Federal (California) case that decided in the bank's favor, but I'd have to go digging to find it.

It's simply a way to charge fees. They are very creative.

[charlesa6]

Yep!! once you don't have account with them they will jerk you around, even if you talk to the supervisor,all they going to say, it's against their policy to cash the check for non customer. What a jerk.

[logos]

Originally Posted by Judge Roy Bean

It's simply a way to charge fees. They are very creative.

Though I was expecting to hear them ask for it, they didn't demand a fee. It was simply dishonor & refusal to perform their fiduciary duty. I intend to inform their executive branch of this sorry episode to see if this truly is CHASE'S policy or just that branch going rogue. If it's policy, I'll talk to the state banking authorities though I suspect they'll do nothing w/o proof. I've been told by someone who's been in the financial industry for years that if the bank is FDIC insured (CHASE admitted so) they must honor it, though I haven't confirmed this.

I'd like to nail them just on principle.

[powder]

What wording did you use when the instrument was "presented"?

[Judge Roy Bean]

Originally Posted by logos

Though I was expecting to hear them ask for it, they didn't demand a fee. It was simply dishonor & refusal to perform their fiduciary duty. I intend to inform their executive branch of this sorry episode to see if this truly is CHASE'S policy or just that branch going rogue. If it's policy, I'll talk to the state banking authorities though I suspect they'll do nothing w/o proof. I've been told by someone who's been in the financial industry for years that if the bank is FDIC insured (CHASE admitted so) they must honor it, though I haven't confirmed this.

I'd like to nail them just on principle.

Chase is a Federally-chartered bank, so the state has limited power to regulate them.

[Jerseee]

Their game and their rules. And I bet they quote the UCC as supporting their position.

This should be a flashing red light when the UCC is discussed.

Logos,

play the game and expose it while playing it. this way, you get what you want and you can do what you are trying to do. I say, go with the flow and don't paddle just yet---then at the right moment, pull out your paddle.

have fun

This is one of those issues that just frosts my hide. Although there may be a Appellate ruling, it is B.S. For them to charge one class of people and not another is in restraint of free trade, which is illegal...they charge individuals presenting checks but not ACH clearing checks.

Originally Posted by Judge Roy Bean

Unfortunately, it's not illegal for them to jerk people around like this. If memory serves, there was a Federal (California) case that decided in the bank's favor, but I'd have to go digging to find it.

It's simply a way to charge fees. They are very creative.

[theghost]

Originally Posted by logos

I presented to CHASE bank today a check for 25.00 USD drawn on them and they flat-out refused to honor it. Their dishonor was not due to NSF, invalid ID, etc. They said it's their policy to dishonor them if presented by a non-customer (in person), though they do honor them if presented by a bank. I tried to tell them they have a fiduciary obligation to honor it and that duty is not dependent on the holder being a customer, etc. They invited me to call their executive branch in New York.

Even if one gets a notary to memorialize their dishonor, how much recourse does one really have? How would one go about nailing them?

Logos, if you are the one entitled to present this instrument (your name is on the "Pay to the order of" line), and you presented acceptable I.D., then you have a commmercial dishonor, and I doubt that even local policy would allow this, and certainly not corporate policy.

The thing to do is go back to the bank with a notary, with a notarial protest in hand, and get the manager of the bank to dishonor their instrument in the presence of the notary. I'm willing to bet that they will cash the check. If they do dishonor again, then follow the procedures to bring a complaint against the bank, in admiralty, with damages (a topic for another post).

I have experienced this same thing, although I did not return with a notary, I convinced the manager to do it on the spot. I did remind him that he cannot dishonor their own instrument, even though I was not a customer, and he agreed. They also tried the fingerprint crap, for which I loudly refused, telling me it was "the law", if you can believe that!! I asked them, is it "the law", or is it your policy"? They cashed the check, without responding.