Bank Unwilling to Cash Check from Gold Sale

Banks are put in a hard position sometimes. They only order as much money as they usually need. At the bank branch I worked at...they had about $150K on hand once all the deliveries were done. The corporate office doesn't want the branches sitting on a ton of extra cash so they don't have it in the vault. Obviously, they have a little more than they need...but not a ton. So, when someone "out of the blue" comes in and wants to make a sizable cash withdrawal it can cause problems. We had a customer who needed to do this a couple times and we told him he needed to prearrange it with the branch a week ahead. That way, the extra cash could be ordered. He had no problem with that...and it was easily taken care of.

 

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It matters trememdously when someone 92 years old comes in the bank and is completely irrational. The bank did the right thing from a fiduciary perspective and acted to protect themselves and their client's assets.

 

I bet you that the bank's policy is in place due to lawsuits people have filed when the banks allowed a 92 year old to take all money out of a bank and give it to a fraudster.

I understand everyone's feeling of liberty, freedom, and the like, but the truth is we are a very litigious society, and I would guarantee you some jury somewhere has held a bank responsible for letting a client withdraw their money. The bank will protect itself first, then it will worry about its clients and their liberty, sadly.

 

Call ahead to the bank, let them know your needs at least 10 business days in advance, problem solved. They appreciate this notice, and generally take care of everything accordingly. Granted I have never pulled 650k+ out of an account, but I have pulled enough out that advance notice was helpful.

 

Mr. Sanders in a nice person to talk with. This is his site: http://the-moneychanger.com/entry.phtml I would never do business with him partly because his spreads are too large.

Gary North recommends him partly because they are ideologically on the same page; but Sanders has spent time in jail so it is possible that his checks are being watched by the Feds, but I doubt that is connected to this case--many good reasons have been given why this woman had a hard time doing what she wanted to do. How does the bank know that she isn't being blackmailed by someone who wants only cash? Remember the Kurt Russell movie "Breakdown" where his wife is being held hostage until the crooks get the money?

Aside from the possibility the bank may have doubts about the mental soundness of the nonagenarian, she like many other elderly people become easy prey for fraudsters and untraceable cash is security problem all around. Banks, like all companies, are used to doing things a certain way, they are creatures of habit. When a person or a transaction stands out it is a problem for all concerned.

 

Actually I remember well the "driveway coating" swindles going around in the 90's. Shysters would find someone elderly, ask if they wanted a free "driveway coating" and then charge like $1200 for nothing. They would not leave, and bullied them, threatened to take their house, etc. until they drove to their bank and withdrew the cash.

It happens a lot, so another reason that banks are probably cautious with elderly women's funds. How are they sure that the man on the phone is her son, and not a shyster or worst?

 

I absolutely refuse to believe that the banking regulators in any state would sit back and allow a bank to keep 2-1/2 times the FDIC insurance limit of someone's money and not allow its withdrawal!

The "too much cash" at one time issue wouldn't be involved in transfers of one-third of the funds each to different banks.

In all likelihood the whole story is a political rant with little - if any -basis in fact.

 

I would say you can verify the story by calling Sanders. He is a coin dealer after all. I have never known these people to lie.

 

I work at a bank and with a week advance she should have no problem getting her cash. Like CamaroDMD said though branches have guidelines in which to follow on the amount of cash on hand. Sure they would do a report on her and the government would want to know where the money went/is but she could get the cash. Also we are not allowed to let customers put money in their safe deposit box. Sure they do but we just cant know about it.

 

It is a mistake in my opinion to put more than 25k in any account, I think 25 k is all that the fdic insures.

 

No...it's more than that. I can't remember exactly, but I think it's like $110K or something.

 

From what I know it is common pratice to put holds on large checks unless there is csh already in the account to cover if that check does not clear the other bank it was writte on.
This is for the Banks protection.
And as for FDIC I believe that it's up to 250k per bank.

 

+1

 

It is interesting to me that I can walk into any bank and have no trouble depositing that kind of money, but to try to take it out...well, no way. I am not in my 90's. They stammer and stumble and do anything they can to get you to leave the money as is. NO WAY do they want you (me) to withdraw in cash my money. FACT, PERSONAL EXPERIENCE.

With regard to Franklin Sanders.. a very kind and honest man. I have dealt with him since the mid 90's. I have spoken with him on several occasions (and his son and his daughter.) He has helped me tremendously with making some financial decisions, and many of them not in his best interest (meaning, no gain to him.) He is about the only "outsider" that I actually believe and trust. He is not a liar, nor an embellisher in my opinion.

With regard to him spending time in prison, read the story.. it is in fact scary, to me, in my own situation. Sobering.

Banks? I have great reservations. I keep money in them, and know that I would have a difficult time if I were to try to "pull it".

And yep, if push comes to shove, they say, "...you can't do that.." (And I have been told that, in those words.)

Lucy

 

I kept up until I hit "defalcation", then my mind began to wander. The Vanguard Prime Portfolio money market fund would be glad to cash the check and give her a checkbook where she can withdraw funds (twice a month) for any amount desired.

 

That's because they need peoples money in the banks so they can lend more out or use it to leverage other accounts. Plus with hte way the market feels about Banks Liquidity right now they are more scared then ever.

But this is about making sure they get the money first before they give it out. Just because it's "in that checks account" does not mean it will be there WHEN they go to get it or that the check get's cleared. The other bank still has to give it and that's why there's bank HOLDS. I hate them too when you need your money it stinks to wait.

 

yak whould she not still be in the same spot holding a check and waiting for whatever institution to cash it?

 

Personally I think the bank did the right thing. You gotta protect the elderly and everyone else for that matter. I don't understand the reason why she needed every bit of that money anyways. Sounds to me like a Texas longhorn type story, just another rich person being a blowhard. Why would a person need that much money up front in the first place? And the answer to that question would be it shouldn't matter they should have cashed my check. No, I don't agree old gal. Ridoggonediculous, that's all I can say.

 

Why automatically think she has dementia my grandma was sharp as whistle and very attentive at 92. Maybe she already has the max amount in the bank so she doesnt want to give away free money if the bank goes under

she did say she could wait till the check clears so the other account haveing the money should be no problem