Other Finance Related Services - The following directory listings on DebtConsolidationLoan.com are provided to assist you with the management or consolidation of your debt. Also, while on this site, feel free to shop for other financial services such as auto insurance and home equity loans.
- Personal Loan Companies - Need a personal loan for debt consolidation? These types of loans often do not require collateral and are available to homeowners, as well as renters.
- Debt Management Credit Counseling - Do you feel that your credit card bills are stacking up with nowhere for you to turn? Your problem is not unique. Signing up with debt management firm may be the right solution to your debt problems. Review different firms offering these services to determine if this is the correct option for you.
- Debt Consolidation Service - Learn more on how consolidating your credit card debts can work for you and potential pitfalls that you need to avoid. Also, review a list services that offer to help people lower their bills into fewer payments or even one payment.
Avoid Costly Scams Involving Fake Checks and Money Orders
Consumers and businesses often lose thousands of dollars in transactions with con artists
There's been explosive growth in counterfeit personal and business checks, cashier's checks and money orders in the last few years, due in part to new technologies and the growth of the Internet for transactions among strangers. But what's especially troubling is that individual consumers and businesses are losing significant sums in these scams – often thousands of dollars – because they deposited a check from a stranger, withdrew the funds and then sent money or merchandise before their bank discovered that the check was fraudulent.
In these cases, the depositor most likely will be held responsible for the entire amount of the fraudulent check. Why? Because by depositing the check and withdrawing money, the consumer is taking responsibility for the funds that have been spent or sent before the check is found to be worthless. And often the withdrawal cannot be cancelled or reversed, especially with wire transfers, in which funds are transferred out of the account immediately. Also, the person who receives the check usually is in the best position to realize that it may not be good.
Money isn't the only thing that can be lost to a fake check scam. In one example reported to the FDIC several years ago, a person "sold" a classic car then worth $41,000 to a scam artist who used a counterfeit cashier's check.
FDIC Consumer News has been warning readers about check fraud for years, but given the increase in fake checks and the costs to victims, we offer these key reminders.
One
If you deposit a check from a stranger, discuss the situation with your branch manager before spending that money or handing over anything of value. It's safer not to accept checks from strangers, but if you do, tell the manager about the circumstances surrounding the check and ask when the check is likely to be considered "good" (paid).
While federal regulations require institutions to make funds from a deposit available quickly – generally within one to five business days – it can take a couple of weeks or longer before the bank discovers that the deposited check is worthless.
"The check could be counterfeit or bounce because of insufficient funds, and your bank will most likely hold you responsible for that money," said Michael Benardo, manager of the FDIC's financial crimes section. "If the other party badgers you at any time about waiting, especially if you are directed to send funds, tear up their check and stop all communications."
So, protect yourself by not touching the deposited funds until you explain to your branch manager the details of the transaction and the source of the check, and you wait for the manager's go-ahead to use the funds.
|
Winter 2006-2007 |
Depositing Check From a Stranger |
Walk Away From a Deal | |
FDIC Consumer News is published by the Federal Deposit Insurance Corporation
FDIC Consumer News is produced quarterly by the FDIC Office of Public Affairs in cooperation with other Divisions and Offices. It is intended to present information in a nontechnical way and is not intended to be a legal interpretation of FDIC or other government regulations and policies. Mention of a product, service or company does not constitute an endorsement.
Find current and past issues of FDIC Consumer News at http://www.fdic.gov/consumernews. Refer to this same index to locate the issues that are specially formatted for being reprinted in any quantity.
To receive an e-mail notice about each new issue of FDIC Consumer News posted on the FDIC Web site, with links to stories, follow instructions posted at www.fdic.gov/about/subscriptions/index.html.
Last updated on 2/1/2007