Read the damn bank disclosures

Banks are required to provide you with various disclosure on how your account works, your right, the bank's rights, what the bank can do and much more. 99.9% of do not read these disclosures, but if we did we would actually understand how things work and what we can do and avoid sitting on hold with customer service for 8 hours.

I bet you didn't know the bank can close your account at any time, with zero notice to you and they do not legally have to provide you with a reason.

You only have a certain amount of days to file a dispute with the bank or they can legally deny the request. You have 60 days from the time your statement generates that has that transaction on it.

If a direct deposit, payment of any kind, etc hits your account for the wrong amount (too much or too little) the bank can adjust that with notifying you or your permission if it would put your account in the negative. This actually also applies when you sign an automatic payment with any company (Gas, electric, cable, cell phone, MailChimp subscriptions, etc) Within their disclosures you are agreeing to allow them to correct any error without notice or approval from you.

They go over how your transactions post and in what order. Yes, there is an order to how transactions post to your account. The bank may post debit card transactions first, then ACHs/direct deposit and then physical checks, etc. and whichever category it is, they process at the time that transaction was sent to the bank.

Ex. Your account has $500 and a check came out for $455 and a second check came out for $100. If that $500 check was sent to the bank for processing at 1:00 pm and the $100 check was sent at 2:00 pm that's why the bank won't return (reject) the $500 check and pay the $100 check avoiding putting your account in the negative. It goes off of the time the bank received the transaction. (Again, this is explained in your disclosures)

It is not illegal to deposit a post-dated check, it is the bank discretion, but most banks, will not deposit a post-dated check. It is illegal to give a post-dated check if you know you do not have to funds in your account at the time you gave the check to someone.

If you have another signer on your account, husband, friend, child, etc, they have all the same legal rights as you do. There is no longer a "primary or secondary" person with a different right to manage the account. When a bank refers to "primary or secondary", it's simply referring to whom the first, or second person who is listed on the account. So, if your friend Bob wants to close the account for whatever reason, they can do so without your approval/notice to you and will remove all funds available in the account regardless of whose funds it actually may be, since you both have all legal rights to the account and money in it.

If this was without your approval and you need to have the bank try to help you get the money back, you have to file a police report on that person and press charges. The same goes for if you allowed your friend (who is not on your account) to use your debit card with your pin to take out $20 for you, but they took out $200. Since you gave them permission, you have to file a police report on that person and press charges for the bank to pursue this.

These are just a few of the "bigger" pieces that these disclosures inform you of.



This post is informational and educational only and is not legal advice, nor does it create a consultant-client relationship. Please consult your legal counsel for further guidance on this topic.

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