'Banking While Black': How Cashing a Check Can Be a Minefield

[Hammster]

What isn't generally appreciated is that banks can relax their rules for a customer who has a good record of repayment of loans. However they can also impose strict, but lawful, rules on any whose credit worthiness in shaky.

My family banked with the same bank for many years and when I applied for a loan (several over time) it was granted based on my family's good credit history. However, when the bank tighten it's rules and applied them to everyone I was caught in it as well. I wanted to buy a used car but lacked the full one-third down payment required and was denied the loan, even though I was well able to make the payments. I was so offended that I cancelled my account and joined another bank.

And that’s what you should have done, if another bank will give you better service.

 

[OldWiseGuy]

And that’s what you should have done, if another bank will give you better service.

Over time I became a valued depositor in my new bank (S & L). However, they became a 'full service' bank and began to make large commercial loans. With the real estate mortgage debacle many of their loans failed and they became an 'at risk' bank, resulting in drastically reducing the interest paid on savings instruments. As mine matured I moved them to the internet banks where I could receive much better earnings. They even called me in to plead with me to renew my CD's with them. I declined as the difference in interest rates was dramatic. Shortly after they went into Chapter 11 bankruptcy and closed all their branches in the area.

I still don't invest in brick and mortar banks but do use one for checking, and as a transfer point for moving money in and out of my various internet banks.

 

[lasthero]

In all my years not once did I ever have a black employee stand outside a bank in fear of cashing a check.

You go with your black employees every time they cash a check? Weird.

 

[Hammster]

You go with your black employees every time they cash a check? Weird.

It’s as accurate a summation as the OP.

 

[FireDragon76]

Yeah I've read several stories of bank employees assuming any large check cashed by a Black person is fraud, though $200 seems really low.

There's a good movie called Catch Me If You Can about a young man named Frank Abegnale that made a living through check fraud by engaging in clever social engineering, taking advantage of the biases of bank employees in the process.

 

[Larniavc]

'Banking While Black': How Cashing a Check Can Be a Minefield


This is one reason why I am thankful for direct deposit, less headache and fewer issues.

This is awful and another example of how terrible America can be if you are not white.

But do people still use cheques in America? I haven’t even seen a cheque in over ten years.

 

[FireDragon76]

You have got to look farther into what's going on. A lot of the problems you see as only being about blacks is actually a poor person problem. Go to a poor white neighborhood and you will find high rates of police activity and yes they even kill unarmed white men. Raise up the less fortunate of all races and you will see most of the problems disappear. We have got to start seeing each other as equal.

Blacks are about twice as likely to be poor as whites.

 

[Arc F1]

Blacks are about twice as likely to be poor as whites.

All the more reason to bring manufacturing and other jobs back to our own country.

 

[Radagast]

But do people still use cheques in America? I haven’t even seen a cheque in over ten years.

Me neither.

In fact, I've even forgotten how to "cross" them.

 

[OldWiseGuy]

This is awful and another example of how terrible America can be if you are not white.

But do people still use cheques in America? I haven’t even seen a cheque in over ten years.

Some want a paper record of paying bills.

 

[Larniavc]

Some want a paper record of paying bills.

Why not just get a print out?

 

[OldWiseGuy]

Why not just get a print out?

A checking account is a handy bookkeeping system, as well as my only connection to my bank. I only write a few checks each month so it's no big deal. All of my large transactions are done electronically but my bank is still involved. My checking account is a temporary repository for those funds as I move them around.

 

[Larniavc]

A checking account is handy way to move money around, and is a bookkeeping system as well. I only write a few checks each month so it's no big deal.

Isn't there a three day wait before the check clears? I'd fine that annoying but YMMV.

 

[OldWiseGuy]

Isn't there a three day wait before the check clears? I'd fine that annoying but YMMV.

Small deposits are usually available the next business day. Large deposits such as large CD's that have matured usually aren't available for several business days. Not an inconvenience at all as all my purchases are made by credit card; one check written once per month.

 

[Larniavc]

Small deposits are usually available the next business day. Large deposits such as large CD's that have matured usually aren't available for several business days. Not an inconvenience at all as all my purchases are made by credit card; one check written once per month.

Fair enough.

 

[OldWiseGuy]

Fair enough.

To cap it off, I deposit my income into my checking account, which acts as a temporary repository. When I have a few thousand above what I need I transfer those funds to a money market account, to earn a little interest. When that account reaches a substantial level I roll it into a CD. Then the process starts again.

When a CD matures the funds are transferred back to my checking account. From there I either add to the balance and buy a larger CD, or keep out some funds to buy a new toy. Sometimes I just renew the CD, depending on what interest rates are.

All funds are insured at all times by FDIC or NCUA.

 

[Hank77]

There's a good movie called Catch Me If You Can about a young man named Frank Abegnale that made a living through check fraud by engaging in clever social engineering, taking advantage of the biases of bank employees in the process.

Good movie.
Frank Abagnale - Wikipedia