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Originally Posted by Inkstain82
Just looked it up, my mistake. I thought the Check 21 act required banks to use the electronic means, but it only gives them the option. Never mind.
Regardless, is the banking industry even denying that they fiddle with deposit clearing times to try to generate overdrafts on certain accounts? I was under the impression it was more or less an open practice called "fee-based banking."
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Will they deny it, h*ll yes! However, not all banks are this scrupulous. That's why you need to look at the funds availability notice. Like I said, my former bank gave you credit the next day regardless of where the check came from. I think the "big boys" behave differently than the smaller community banks.
I'm not saying that banks don't use it to their advantage, I'm just saying that there is legitimate amounts of time necessary for paper checks to clear and that it can be several days (or longer in some circumstances). The banks may also be using this as a tool to prevent losses from kiting. It really depends on each bank and their experiences. My bank very rarely lost money in kiting and maybe that's why we were lenient on the availability.