Bad Checks Can Negatively Impact Your Credit

Millions of people use checks as a convenient form of payment everyday. According to D & B Company, in 1997 (the last year for which statistics are available) it is estimated that American consumers and businesses wrote approximately 66 billion checks. This figure amounts to roughly 250 checks per capita annually, or one check per business day per U.S. resident. D&B Company continues that despite the rapidly expanding use of electronic payment such as debit, the market share of checks remains quite high at 73 percent, measured as a percentage of non-cash retail transaction volume.

Checks provide a person access to their money without the hassle of carrying large sums of cash. Big ticket items such as appliances and furniture can be easily tracked and documented by checks in case problems arise, whereas cash cannot. It is good practice to write checks based upon a positive checking account balance to avoid a check being returned. Businesses as well as individuals suffer from being issued a check that has been dishonored by a bank due to non-sufficient funds, a bad check.

Bad check writing can be costly to issuers as they incur fees from their bank and from the person who received the check, plus the cost of the goods or services they accepted in exchange for the check. Signs that declare “We no longer accept checks” are the result of businesses receiving several bad checks over time, and opting not to accept checks as a form of payment at all.

Financial institutions offer overdraft protection to consumers as a way to avoid bouncing checks. If an account falls short of the amount a check is written for, your bank will simply draft the shortfall from a savings account, credit card or line of credit. Maintaining a higher checking account balance coupled with a disciplined checks and balancing system can help a person avoid bad checks. ChexSystems warns consumers to avoid relying on the “float” period (the time between the deposit of a check and its clearance at a bank). People are also advised to only write a check based upon what they truly have in a checking account.

Based upon individual state laws, businesses as well as individuals have the right to recover bad checks through civil or criminal action that can result in fines and imprisonment for the issuer.  Bad checks can prevent a person from writing checks and opening a checking account. Businesses rely on risk reporting provided by verification companies like TeleCheck and ChexSystems, which alerts them to not accept a check written based upon a negative check writing history. Overdrafts, unsatisfied balances, fraudulent deposits and account irregularities overall are tracked and reported. According to Telecheck, “We provide the TeleCheck Electronic Check Acceptance service so that businesses have the opportunity for increased efficiency, reduced risk and higher productivity, all of which eventually benefit you—the consumer”.

According to CheckSystems, they are similar to Equifax, Experian and TransUnion. In fact, ChexSystems is regulated under the Fair Credit Reporting Act just like credit reporting companies. Bad checks can affect your credit score negatively. Credit bureaus will eventually receive reports of checks that are in collections and remain unpaid. Overall, bad checks should be avoided by consumers. Overdraft protection services and check book balancing can combat bad check writing. As mentioned bad check writing is costly for everyone involved in a transaction that can result in hefty fees and imprisonment.

Tamara Thompson has been an Internet content writer for over 10 years. Her work includes copy for email campaigns, articles and sales advertisements. Tamara is a gradute of Savannah College of Art & Design. Blog: A Girl Who Wears Glasses

Article Source:http://www.articlesbase.com/banking-articles/bad-checks-can-negatively-impact-your-credit-1370209.html

PNC Bank Online Banking

PNC Bank offers PNC Bank Online Banking service to its customers and account holders. As a result, clients can access their accounts from any place according to their convenience. The most distinctive aspect of PNC Bank Online Banking is that it can be accessed round the clock, through the week.

Benefits of PNC Bank Online Banking Service

Accountholders of the PNC Bank Online Banking do not need to be present on the bank premises to access their accounts. They can use Online Banking service to do the following tasks:

• Access their accounts even when they are outside the country.
• View all the necessary details of all the transactions from their account.
• Receive bills over the net.
• Pay their bills from their checking account free of cost. This bill payment facility is hassle free and convenient to use. This facility also saves on the time spent in queues or writing and posting checks.
• Get their account statement generated. These statements can then be forwarded to their email address, making it easier to preserve them as a record. These online statements are accepted by all institutions as documentation. In addition to this, the PNC Bank also allows its accountholders to download the transaction history of their accounts on their personal computer. This helps customers preserve the transaction details for as long as they wish.
• Use the various money management tools offered by the bank from anywhere in the world.

PNC Bank Online Banking also provides its customers the facility of reminding them of the balance in their respective accounts. These reminders, also called alerts, send email alerts to accountholders:

• If the balance in their account reaches zero or becomes negative.
• When they receive online bill

To use the PNC Bank Online Banking service, customers need to first enroll themselves. Once you enroll to the service, you achieve peace of mind that your identity and account information are secure.

About the Author: The author is an internet marketing professional and is affiliated with Veda Informatics, a website design, web & content development company offering content development, website design, web development, SEO, SEM, PPC management and other web services.

Article Source:http://www.articlesbase.com/banking-articles/pnc-bank-online-banking-1363360.html

How Are Banks and Credit Unions Different?

So, you are about to embark upon the fun task of switching banks, opening an account for the first time or perhaps just looking around to see what is out there. Think about what you need and then look into your choices.

Consider how fast you can get results. Does the bank or credit union utilize <a title=”Learn More About Automated Decsioning at Zoot!” Href=http://www.zootweb.com/additional_information/automated_decisioning.html>automated decisioning</a> so that you can get results in an instant? Automated decisioning is a way that financial institutions can get you answers regarding loans, credit card approvals and line of credit increases right away.

Are you thinking about starting a business? Consider <a title=”Learn More About Small Business Lending at Zoot!” Href=http://www.zootweb.com/additional_information/small_business_lending.html>small business lending</a> program. Look to see if you would qualify for the loan and perhaps all the hoops through which you will need to jump.

A simple thing to ask yourself is how convenient is the institution’s location. Maybe you don’t drive so you’ll want to make sure they are on your bus route or within walking distance of your home. If not, maybe there is a satellite location close to you or an ATM where you can do your deposits. Ask yourself how much you will need to visit the bank so you can choose one that is convenient.

Next, think about the difference between banks and credit unions. There are several key differences when f figuring out which way you should go. First, credit unions are owned by its members. The members are often limited to a certain select group of people, depending on the credit union. Investors, on the other hand, own banks. Second, credit unions are not-for-profit. Banks, since they are investor owned are out to make a profit for their investors. So, when a credit union reaps profits it is coming back to the members in the form of lower interest rates and higher dividends.

Think about the type of service you’d like to receive. So far I haven’t met anyone who would choose a bank if they were choosing purely because of customer service. Generally speaking, since credit unions are smaller they get to know their customers better. This may mean that they will look out for you a bit more than a bank. However, there are many people that swear by the bank they use and don’t really care about the customer service as long as there are no errors. It is up to you.

Maybe online banking and bill pay is important to you. If so, check out their web site and maybe their news releases to find out what they offer and if there is a fee for their services. Those little fees can really add up rather quickly if you are not watching out for them. And, make sure they are compatible with your budget software or be prepared to invest in some new software. You may also want to keep in mind whether or not you want the option of having a safety deposit box and if they are offered.

A bank or a credit union? The choice is yours. But, ask around. Find out from friends and family what kind of experiences they’ve had and you’ll be on your way to finding a good fit.

About the author: Jason Ausmus is a web content producer for Innuity. For more information regardingautomated decisioning or small business lending go to Zoot

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Five Guidelines for Incentives

I often get asked about incentive programs, a favorite topic of mine since many plans assume complex forms in an attempt to achieve multiple objectives.

 

In analyzing incentive plans, I use five guidelines:

 

1)      Motivation. Make sure an incen­tive is really an incentive; a PhD shouldn’t be a prerequisite to fig­uring it out. Employees should be able to figure their incentives on their drive back to the office.

2)      Evolution. Don’t try to build Rome in a day – allow the plan to evolve over time, especially if your em­ployees don’t have much experi­ence with incentives.

3)      Imperfection. All incentive plans have inherent flaws, so realize they are no substitute for good manage­ment. In fact, good management can survive without a good incen­tive plan, but a good incentive plan cannot survive without good man­agement. I know it seems obvious, but many tend to forget it.

4)      Integration. Keep incentives narrow and focused on the behaviors they need to reward, and integrate other compensation and benefits to reward non-sales efforts (i.e., retention is im­portant even though it may not show up on a sales report).

5)      Practicality. Make sure incentives are operationally feasible in terms of running the metrics and paying your people. You have to be able to engi­neer what the architect sketches.

Typically, when incentive programs are rolled out, we look at them as additive rather than subtractive; employees will do the extra things we want to earn the incentive. This is a fantasy. If employees only have so many hours in a day, the extra effort they will devote to earning incentives will come from other activities. For instance, a sales incentive program will likely take time from activities involving retention and credit quality.

This is why a multi-faceted, integrated compensation program is important. Employees need to see that their compensation doesn’t revolve solely around the activities supported by incentives. For instance, the use of other forms of compensation can help buttress activities that aren’t easily quantifiable. Discretionary bonuses are one such type although some labor attorneys frown on them because they carry greater discriminatory risk.

However, these types of bonuses can help managers retain the authority that incentives sometimes strip away. This stripping occurs because employees are more likely to spend time doing what you reward financially than what you simply command to be done. Consequently, incentives can create built-in resistors to other initiatives that might come up during the year.

For those who have experienced various incentive programs, some of these pitfalls are not new. Still, it’s a challenge to make sure they don’t get out of hand. The five guidelines above can help.

For more information on incentive plans, please visit <a target=”_blank” href=”http://www.younginc.com”>www.younginc.com</a>

Article Source:http://www.articlesbase.com/banking-articles/five-guidelines-for-incentives-1355153.html

An Avalanche of New Compliance Regulations

Since the beginning of this year, banks have been buried in new federal regulations. Every week has brought something new that a bank will have to put in place, often, it seems, with little warning.

 

Here is a partial list of recent regulatory changes:

• Regulation Z: Closed-end; Changes in coverage; Early TIL; Disclosure delivery; Dis­closure timing; When you can close; When you can collect fees; HOEPA; Higher priced mortgage loans and documenting ability to repay; Mandatory escrow; Reg­ular homes and manufactured housing; Open-end disclosures; 21-day timing of statements; 45-day timing for notification of changes; New appraisal coercion rules; New adverting rules; New commentary
• RESPA: GFE changes; HUD changes; Escrow changes; Ac­count analysis
• BSA: Exemptions – rules relaxed; Guidance on 314(b) information sharing; MSB registration list
• Reg D: Changes in reserve re­quirements; Relaxation of the 3 transaction limit on checks pay­able to third parties
• Reg CC: Combining check pro­cessing districts; In November 2008, the Fed announced that it had altered its restructuring plan substantially to ultimately make the Cleveland office the single paper check processing and ad­justments site, and the Atlanta of­fice the single electronic check processing site for the Federal Reserve System.
• Servicemembers Civil Relief Act: The protection given to service members in terms of the amount of time they have to respond to a proceeding or foreclosure is ex­tended from 90 days to 9 months after they leave military ser­vice. These changes are in effect through December 31, 2010.
• Flood: Final Revised Interagency Q & A
• Appraisals: 2008 code of conduct; Appraiser independence; Reg Z ap­praiser coercion – new rules
• FCRA: Accuracy of information re­ported to credit bureaus; FAQs on ID theft rules; Technical correc­tions; FTC “Red Flags Website”
• Proposed SAFE Act: A national reg­istry of mortgage originators – fin­gerprint requirements
• FTC proposal to curb unfair and deceptive mortgage practices
• Federal Reserve proposal to change disclosure for closed-end mortgages and HELOCs

 

Conclusion

Each of these new or proposed regulations will affect different departments in your bank, and to comply, you may have to change processes, procedures, and checklists; train the appropriate personnel; and develop audit or process tracing techniques to make sure you are in compliance.

This task can be mammoth; you have a bank to run. One solution is to involve some outside experts that can help you make the changes, train the appropriate personnel, and then leave.

For more information about the new regulations, please visit <a target=”_blank” href=”http://www.younginc.com”>www.younginc.com</a>

Article Source:http://www.articlesbase.com/banking-articles/an-avalanche-of-new-compliance-regulations-1355162.html

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