Posted by cassiewi on 7/28/08 8:26pm
Msg #257395

Update on LFC bounced check

I left a message for Susan Orton today of the accounts payable department. She called me back and said that they were having some issues with their bank and corporate decided to close the account. (Whatever that means?) She asked me to please send her the proof that the check bounced and of $19 fee I was charged and as soon as they got their new account up and running (ok? how are they funding?), which shouldn't take more than a few days she would cut me a new check for the total amount. Doesn't sound kosher to me. I think I'll get my check, but how on earth are they funding stuff and how does a large corp like that have such issues and no back up plan?

Reply by MW/VA on 7/28/08 9:18pm
Msg #257402

I just got a check today--drawn on Comerica Bank. I didn't really notice before, but this might be new. Do you know what bank your check was drawn on? Does this have anything to do with IndyMac of WaMu?

Reply by cassiewi on 7/29/08 6:45am
Msg #257432

I don't have the NSF check back yet,

I saw that something was returned on my online account and called to find out which on it was. I'm not sure which bank it was drawn on.

Reply by Ocean Pacific Notary Services, Inc. on 7/28/08 9:19pm
Msg #257403

With the IndyMac meltdown, many large corporations are moving money to different banks. Since only $100K is FDIC-insured, many large corporations had to eat alot of money with IndyMac shutdown.

And IndyMac owns Financial Freedom, who is the largest RM Co and one of LFC client's, so you can see the bigger issue.

Reply by MW/VA on 7/29/08 8:15am
Msg #257437

Thanks for the input. I don't see a need for fear & panic. It always amazes me how people read so much into a single situation. All my checks from LFC are written from a "Virginia Trust Account". I can certainly see how corporations have been caught short in this bank debacle.

Reply by BrendaTx on 7/29/08 8:42am
Msg #257441

** I can certainly see how corporations have been caught short in this bank debacle.**

That's interesting.

How?

Reply by BrendaTx on 7/29/08 12:05pm
Msg #257476

If you have a list of those idiots, please post it.

**Since only $100K is FDIC-insured, many large corporations had to eat alot of money with IndyMac shutdown.**

http://www4.fdic.gov/EDIE/

How hard would it be to figure out what deposits are covered by FDIC and what aren't?

$100,000K per account, by the way...not per person.

Reply by HudsonBayCA on 7/28/08 9:30pm
Msg #257406

My check is drawn on U S Bank. Which bank was the one your bounced check was drawn on?

Reply by Pat/IL on 7/28/08 11:40pm
Msg #257418

Cassie,

Loans are funded through a separate escrow account(s). Title/escrow companies cannot comingle the escrow funds with the general accounts. They may run the loan (escrow) funds and general funds (from which they may pay you) through different banks.

Reply by BrendaTx on 7/29/08 5:45am
Msg #257428

Re: Update on LFC bounced check - True, Pat, however,

can you imagine a large title company closing out an account without leaving funds to cover the issued checks? How foolish would that be?

Maybe I am just accustom to businesses and people with real bean counters and professional business practices...it would be unheard of by my experience with title companies I work with IRL. Not to mention probably violating all kinds of title company rules of operation and ethics set by their state and professional associations.

On Cassie's check, did it say, "Account closed"? She never mentioned that if it did.

I still say the bank would not do a hard bounce on a check if they had any kind of relationship with the company.

Issuing checks on an "account closed" account is (in my experience) is a lot more serious than issuing an NSF check.

Reply by BrendaTx on 7/29/08 6:00am
Msg #257429

**he called me back and said that they were having some issues with their bank and corporate decided to close the account.**

Does the check say, "Account Closed" on it?

I'm not surprised they want that check back. Writing a check on a closed account can be more serious, if I'm not mistaken, than writing an NSF check.

Reply by Ilene C. Seidel on 7/29/08 6:25am
Msg #257430

First of all they knew the check was outstanding cause their accounts must be reconciled so they knew what was not cashed, doesn't matter if its an operating or escrow account. These big guys have staff accountants and FC bookkeepers. That excuse is lame and I wouldn't return the check until they sent you the one from the correct account just in case you need to go to collections.