Family: Bank would not cash check for burial

[unhappycamper]

Source: Navy Times / Associated Press

Family: Bank would not cash check for burial
The Associated Press
Posted : Thursday Jul 31, 2008 6:17:40 EDT

LOS ANGELES — A complaint was filed with federal regulators Wednesday against a savings and loan that refused to waive check-cashing procedures so a couple could pay for the funeral of their son who was killed in Afghanistan.

Downey Savings and Loan Association refused to immediately cash two federal bereavement checks totaling $100,000 when they were presented at its Hemet branch month by the parents of Navy Hospitalman Marc Retmier, attorney Gloria Allred said at a news conference.

Allred said the bank wanted the family to wait more than a week while it verified the checks’ authenticity — well after the planned date of the sailor’s funeral.

Allred said she sent a letter of complaint Wednesday to John Reich, head of the federal Office of Thrift Supervision, asking for an immediate investigation into the incident. She also asked regulators to adopt new rules requiring all thrifts and savings and loans to immediately cash federal bereavement checks.

Read more: http://www.navytimes.com/news/2008/07/ap_retmier_parents_073008/

[Donnachaidh]

1. link is NOT working! n/t

[joeglow3]

2. This is the rules

I cashed a $20,000 check once and had to wait 10 business days to make sure it cleared. This is not some unique case, but an application of the red tape implemented in the banking industry.

[mbperrin]

3. And when you visit a Federal Reserve Branch (it's free),

they will explain how 99% of ALL checks are cleared by the Fed within 24 hours, and the rest is "float" whereby banks make money by investing the money they make you wait on that they already have. They'll also explain how the Fed charges 50 cents to the bank for "hot" checks, while banks typically pile on $30 or even more.

There's a special place in hell for bankers.

[joeglow3]

9. This I don't disagree with

My check was from a major brokerage firm a few years ago. There was not doubt it would be good and the bank just sat on it for the rate arbitrage.

[notadmblnd]

8. the work around that I have found is simple.

there are times that I have large checks that I deposit and my bank gives me the same hassle, "you have to wait 7-10 day to draw on it" they tell me. I simply deposit it at the ATM and it is in my account, available the next day. I think the data processing people at the bank aren't as trained in policy like tellers are.

[struggle4progress]

21. But you can bet that the bank's actual transactions fly with electronic speed

[LiberalFighter]

4. Totaling $100,000? Could someone explain how it amounts to that?

I could only find:
$225 -- Social Security Lump Sum Death Payment
$12,420 -- Death Gratuity

[14thColony]

7. Combat zone vs non-combat zone

The death gratuity payment is $12,420, but for deaths as as a result of hostile actions in a designated combat operation or combat zone or while training for combat or performing hazardous duty, the payment is increased to $100,000.

[LiberalFighter]

11. Didn't it say combined payment? Which would mean that each

amount was less than $100,000.

[14thColony]

24. That's true

Not sure. Might have also been a misinterpretation by the reporter.

[roody]

20. "Death Gratuity"---How morbid.

The rich tip the poor for their service.

[raebrek]

5. New Link

Let me try to find one that stays working as mine went dead immediately upon arrival.

http://tinyurl.com/6fgs6j Try this one.

Raebrek!!!

[mbperrin]

6. Alternate link:

http://abclocal.go.com/kabc/story?section=news/local&id=6297756

And the very last line in the story:

The Retmiers eventually went elsewhere and cashed the checks at a credit union. (Thanks, member-owned credit union!) (Hey, doesn't member owned mean communism?)

[Ilsa]

10. This is outrageous. It is another part of the fucking over of the customer,

and in this case, the family of a sacrificed soldier. There is no reason not to honor a check like that within 24 hours, at most.

[Psephos]

12. There actually is a reason

The checks may be counterfeit.

There's a lot of problem right now not only with fake checks, but also with forged/counterfeit money orders, even the USPS kind, and cashier's checks, too. Digital technology has elevated the forger's art to remarkable levels.

I'm no fan of banks and their fee-obsessed consumer business model. Just stating the reality.

The credit union did honor the check. What that says to me is that there's no substitute for a personal banking relationship with people who know you, now more than ever.

[Toucano]

13. Fake travelers checks are on the rise, too.

I received some FANTASTIC fakes from Eastern Europe last year.

They had watermarks, color shifting ink, and holograms.

The equipment to produce great frauds is readily available.


Still, the S&L could have verified the check's validity in a matter of minutes, not days.

[Realityhack]

23. that may not be possible.

Banking systems are very complicated.

[Ilsa]

15. If it is a really good counterfeit, I suspect the group that it is drawn on

won't know for months. Ten days probably won't make a difference if the counterfitter of the check has Bank # and account#.

[slackmaster]

14. Downey Savings survived the S&L crisis of the '90s?

I didn't know that. I thought they went down.

[high density]

16. "Cash" $100k in checks?

I don't blame the bank for being cautious.

[sammytko]

17. Doesn't the funeral home usually wait on this?

I know when my father died - WW2 vet - they just said they would get the money later from the VA, his insurance etc.

Of course this is a small town place, but still. They knew exactly who to call and what to do to get his grave marker and fire team for the 21 gun salute.

They took care of everything - which is what they are supposed to do.

[dysfunctional press]

18. the funeral home couldn't take a post-dated check for services?

if the funeral home- aware of the circumstances- is insisting on the money up front, they're being even bigger dicks than the bank. bereavement is supposed to be their business.

[MadrasT]

19. Hmph

I'm surprised the government even SENT them the checks that fast.

[silverweb]

22. Credit unions rule!

I've been with the same credit union for over 20 years and wouldn't change for anything in the world.

Commercial banks suck!