Redemption at BofA

[David Merrill]

I too have encountered this type of hassle at several different banks; and I comprehend that a check is an instrument of the bank ordering the bank to pay the payee. Is there a statute in the USC or UCC that states this fact clearly so that it can be brought up in conversation when the teller refuses to execute the the order without a fee?

I have tried finding something solid to back this up and have only found information to the contrary. Such as,

Question: Can a bank charge a check cashing fee to non-customers?
Answer: Yes. Institutions are allowed to charge a check cashing fee. The Department issued a press release on August 31, 2001 regarding this matter. Since then, the court ruled that the Texas law was not enforceable and therefore the institutions could continue the practice of charging a fee for cashing their checks.

source:http://www.dob.texas.gov/exec/faq.htm

I'm not doubting that the bank is required to cash their instrument, I'm just looking for a way to prove it to them.

I figure that the law really reads that if they have notified you they will be charging the fee, they can. Notice and grace; that is the law. When you are there at the counter though, they have to cash the check and cannot charge you. What I mean is the law of "next time" prevails. When I was experimenting (vicariously through suitors) we encountered this "next time" law consistently. One suitor went three times and always got a "next time" to his objections.

That is what the law is in my opinion and I believe it is coherent with the UCC in many sections. You have to make the Notice CONSPICUOUS and if you just showed up there to see that there is a sign saying, IF YOU DO NOT HAVE AN ACCOUNT WITH US WE WILL CHARGE YOU $5 TO CASH A PAYCHECK, that does not cut it for notice. Maybe they will rag on you about, Last time we told you next time.

The enforcement is your boss. When we were toying with this in the brain trust the ammo was, I don't think my boss intended you to have $5 out of my pay. Pushing that would be, Please call the CFO where I work and see if he wants to pay you $5 to cash my paycheck or would rather move the account to another bank.


Thinking over this post, I beleive I have described banking law quite well. I believe I could pretty well guarantee that you will walk out of the bank with your $5. The Law of Next Time of course includes your own notice and grace. When they tell you next time there will be a $5 fee you counter:


Oh, no you don't! Next time you will not be charging me a fee too.



Regards,

David Merrill.