Banking Terminology

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ThePowersThatBe

Registered: 23.02.11

last visit:

Posts: 105
Posted: 06.11.2011, 22:28

You answered an ad, completed the job application and received a check or money order in the mail for your services. You are then instructed to deposit these funds into your checking/savings account. You do so and after 5 working days, assume everything is good and the money is in your account. NOT TRUE!

The check has cleared:
Does not mean the money in the account belongs to you. It only means that the clearing house has not yet sent the draft (check/money order) back for non-sufficient funds, closed accounts or flag instruction on the count.

Available Funds:
When you deposit a check into your bank account, your bank advances you the money for the draft (check/money order). Usually the credit is automatic. It does not mean the money in the account belongs to you (Your bank is crediting your account with its own funds) not the funds from the bank on which the draft was drawn.

The only time the money in your account really belongs to you is when the check or money order has been HONORED, meaning your bank has been credited (paid) by the account holder bank. ALWAYS ask your bank if the draft has been honored and DO NOT TOUCH THE MONEY until it has.

Cashier Checks
Before depositing any cashier's checks into your account, ask the bank teller to CALL IN THE ROUTING NUMBERS on that check. If you don't the bank will not question its validity and it will take days or weeks to discover it is a phoney.

Depositing a check/money order
You are 100% responsible and liable for any check or money order you endorse and cash, and for any funds placed into your bank or credit union account, whether you deposited the money or someone else did.
By law you must repay the bank, credit union, or store when you have deposited or cashed checks or money orders (drafts) that proved to be of no value.

Your signature on the back of a draft is a contract stating that you take full legal and financial responsibility for that draft. This is called an endorsement, meaning you endorse or approve of the check because you have personal knowledge that the draft is good and true.

If you already deposited the funds and learn you were scammed
File a police report immediately. If your local law enforcement will not take a Fraud Report, ask to file a General Report. You will need a copy for your bank.

Contact the bank. Explain that you have discovered that the checks or money orders were part of a Payment Processing Scam, that you've filed a police report and that you still have the money.

Make a note of who you talked to and their title, and the time of your call.

Ask for a goodwill letter stating that you warned the bank ahead of time.

If you have wired money to the scammer (Western Union/Money Gram)When you send money by Western Union or MoneyGram, the money is gone the moment it is picked up and there is no money trail.. The only record kept by Western Union is of your funds being transferred from one of their accounts to another.

edited by: ThePowersThatBe, datetimebrief
FlakeMistress

Registered: 25.01.09

last visit:

Posts: 213
Posted: 07.11.2011, 08:39

VERy well done, TPTB!!!

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Frosted Flakes Are Filling!
ThePowersThatBe

Registered: 23.02.11

last visit:

Posts: 105
Posted: 07.11.2011, 16:04

Thanks, I've learned something myself.