Bank Fined for Failing to Credit Customers for Full Deposits
The Wall Street Journal reported on August 12, 2015, that Citizens Financial Group Inc. has been ordered to pay at least $34.5 million for failing to credit customers’ accounts the full amount of their deposits. Apparently, Citizens Bank often failed to give customers full credit to their accounts for amounts scanned or manually written on their deposit slips. In others words, the bank did not credit the customer’s account for the full amount of the check/s and cash the customers actually deposited.
Citizens falsely told customers it would verify their deposits. However, the bank’s policy was to verify and correct deposit inaccuracies only if the deposits were above a $25 or $50 threshold or beginning point.
So, why am I telling you this? Because I know how important it is for all of us to check our financial records. Errors whether intentional or unintentional are made. It is up to you to practice due diligence. In other words, constant care and caution where your finances are concerned.
If you play my MONEY-O game on BANKING, you will hear me tell about a banking teller who took just one penny from customers’ monthly bank statements, which amounted to his pocketing millions. Luckily he was caught.
Please play the game so that you increase your financial knowledge and not become a victim of intentional or unintentional financial mistakes.
Banking for beginners basic terms is the focus for this blog. The objective is to give you more information about banks, specifically on how you go about choosing a bank.
The primary purpose of all banks is to make sure the bank you choose is a safe place for you to keep your money. However, not all banks are protected in the same way. So the first thing you should do is to make sure that your bank has an official Federal Deposit Insurance Corp. (FDIC) logo. If it is a credit union, it should have a National Credit Union Administration (NCUA) logo.
The FDIC and NCUA insure each account that you have with the bank for up to $250,000 should the bank fail. The majority of banks in the United States are FDIC and NCUA, and they cover most types of accounts a bank has to offer. However, if the bank offers investments in mutual funds, stock, bonds, Treasury Bills, money market mutual funds, it’s important to understand that these funds are not usually insured by FDIC or NCUA.
Play the money-o game on banking for addition information on this subject.