Please cite the federal law.

Hello. I'm trying to convince someone that doesn't believe me when I say it's illegal for a bank to sell silver coins over face value, or to hold them back. I know it's an actual law because my mom used to work at a bank, and several of my coin friends now of this as well. However I cannot find the actual law that says this.

Thanks

 

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Banks don't need a law they are private business and can enact any business practice that is legal.

In fact they can even charge you over face value for money it's called interest.

 

I think you want the National Bank Act of 1864. It might be a little out-dated. How old is your mom?

 

Perhaps you can't find it because it's not an actual law to my knowledge.

 

IMO, that statement is oxymoronic.

 

I have never heard of such a law. Now, its very common for banks to have a policy such as this to prevent the tellers from creating their own coin store on bank premises. I have heard of such rules in banks, casino cages, and the like, but never a federal law.

Edit: To clarify why a bank would wish to have a policy such as that. If they didn't, the tellers, (knowing some coins could be collectible), might start to go through every coin they touch. They may also start to not wish to give out coins in change, but start knowing some collectors instead who will pay extra for those coins. Who would get the profit from those sales? How much time is the teller wasting that the abnk is paying her for that is spent looking at coins? That is the reason for these policies.

 

Yeah, basically that Act was to push for a Federal currency instead of banks printing their own money or currency from what I recall, creating a national banking system, to support a uniform monetary system.

 

And the orginal question wasn't?

 

I don't believe the original question was an oxymoron.

The kid is asking for someone to cite a federal law that he believes is correct. Then you state a bank doesn't need a law for things that are not against the law...........well duh....

 

Yup, it's like when someone describes a rich person as "poor", that's an oxymoron.

 

This is one of the sadder threads I have seen here. A number of the replies are quite rude and uncalled for.

While there might be one, I am not aware of a federal law which addresses the issue at hand. But I don't believe that tellers are not allowed to charge over face value for coins.

 

Detecto. I've heard the same thing as what you're saying, and never really given it any thought. I think your best chance for a definitive answer would be to call your bank's customer service or public relations department. I suggest customer service first because they will probably know who to put you in contact with, for an accurate answer. Everyone else here is just guessing.

 

How so? I don't necessarily see any rude or uncalled posts in this thread?

 

Not necessarily guessing when public laws are easily and readily available to search, which I even did myself. I found no laws claiming what the OP's mother claimed and has told him that he wants to try and confirm true or false.

 

Can someone elaborate then because I fail to see it.

 

From what I understand is that there is no specific law. To a bank, coins (and currency) are traded only at face value. That's why if you take in a gold $5 coin, you will get $5 from the bank (unethical but legal). Holding back coins is the perogative of the teller who may have had permission from their manager to buy collectible coins for themselves. Selling above face wouldn't happen at a bank unless it was part of a commerative program or a fundraiser.

 

It was me with the "...how old is your mom?" remark. I apologize.

 

I'm sorry guessing was a poor choice of words. I have no doubt a lot of the people who have responded to this thread (yourself included) are very familiar with the banking laws. But I still think the bank is the place to find out for sure.