Could Your Remote Bank Deposit Be Denied Later...Without You Knowing?
The other day I did a segment on the fine print of banks on the radio show. I was surprised to find the similarities between credit card companies and banks. The basic idea of these terms and conditions of any financial institution is to shift liability from them to the consumer. Remote deposit has become a popular form of banking. You might be surprised at the fine print that goes along with the electronic convenience. Let's start with this sample language from one bank's agreement.
After you receive confirmation that we have received an image, you must securely store the original check for 60 days after transmission to us and make the original check accessible to us at our request. Upon our request from time to time, you will deliver to us within two business days, at your expense, the requested original check in your possession. If not provided in a timely manner, such amount will be reversed from your account.
So to make sure you get this...You have to keep the original of the check you remotely deposited for 60 days. The bank has the right to request that copy of the original of the check. If you fail to deliver or fail to deliver within TWO BUSINESS DAYS, the bank can reverse the deposit from your account.
Sounds like that convenience becomes a big pain.
Oh, it gets better! How about this fine print.
You acknowledge and agree that, while we normally provide notice of rejected deposits, we may reject any check transmitted through the Service in our sole discretion without notice to you, and we will not be liable for any such rejection or failure to notify you of such rejection.
In other words, they can reject any deposit at their sole discretion without notifying you. Any penalty fees, overdrafts, etc. that occur as a result of this rejection (because you didn't know) of the deposit is the responsibility of the consumer. Said another way, the bank has no liability in regards to their actions.
Then there is this one that could come out of the book 1984.
If warranted in our reasonable judgment, we may audit and monitor you, and you agree to cooperate with us to permit such monitoring, to confirm that you have satisfied your obligations under this Agreement.
We may audit and monitor you? Big brother is watching!! Sounds like dropping the deposit off at the bank is not such a bad thing after all.