Flutterby™! : Automatic Check Kiting! 2009-08-12 03:05:10.854444+00

Automatic Check Kiting!

2009-08-12 03:05:10.854444+00 by ziffle 1 comments

I may have mentioned that in the past I had an insurance withdrawal be taken out twice in one month, which caused an overdraft. In todays terms though thats a big deal as they save up all the checks coming out and then when your acount is low they send the checks through, the big ones first. This causes a ripple effect (not the wine) which causes a simple problem to wind up costing hundreds of dollars. The poor are hardest hit it appears. Recent headlines show that 38 Billion is made by the banks each year this way.

This is being litigated in Britain

So while they are ripping us off, they have a very different treatment for large customers: Welcome to Kite That Check!

http://www.firsttennessee.com/...tent&Item=ControlledDisbursement

I had an account with First Tennessee since 1985. I walked in and cancelled it when they refused to refund my money. They said they did not sort the checks by size. What lies! They are not the same bank I started with 24 years ago thats for sure.

#Comment Re: made: 2009-08-12 13:19:56.477357+00 by: meuon [edit history]

It's not quite "Kite that check" but I'd say that "Controlled Disbursement" is allowing you to write checks for money not in that account, yet. - Hey, isn't that illegal? I guess not, if you do it with the help of the bank, eh?

I used to wonder at how many people lived hand-to-mouth, or worse, and always assumed big business did not. In reality, as I see the innards of big business financials, it seems to be worse in the business world. The domino effect of one large company going down, quickly brings down others because they are floating on a small rapidly changing stream of cash. If the flow changes just a little, they are all left high and dry.