AIB new ID policy for making cash withdrawals/cashing cheques

Power2011

Has anyone been to AIB in 2013 yet it seems they now have a new id policy for making a cash withdrawal. I have been in the same branch for a while I know a lot of the staff and I now have to show my id to the teller who writes it down on the back of my withdrawal. I asked why this was happening she told me it was a nationwide policy change which the staff member told me was causing them huge hassle and one which the staff did not agree with. She said a person who cashes their cheque every week now has to bring in id even though they been cashing cheque in branch for years.

Has anyone come across this yet ?

homer911

Power2011 wrote: »

Has anyone been to AIB in 2013 yet it seems they now have a new id policy for making a cash withdrawal. I have been in the same branch for a while I know a lot of the staff and I now have to show my id to the teller who writes it down on the back of my withdrawal. I asked why this was happening she told me it was a nationwide policy change which the staff member told me was causing them huge hassle and one which the staff did not agree with. She said a person who cashes their cheque every week now has to bring in id even though they been cashing cheque in branch for years.

Has anyone come across this yet ?

Blame the regulator

greenman09

This is the way it is it seems. Help them cover themselves that they gave funds out to the correct person

Rebel1977

homer911 wrote: »

Blame the regulator

I had the same problem today and I was told it was bank policy

unclebill98

Asking for proof of ID is all down to "knowing your customer" which is part of anti money laundering rules, so it would have something to do with that. Each bank has its own way of implentmenting the rules to be compliant.

However I would find it a pain in the .... If I worked there as q's are long enough since bringing in the automated lodging machines and doing away with front line staff, just another delay to dealing with aib.

hardCopy

It's also another way to discourage people from annoying the counter staff.

The banks want you to use automated machines for all transactions.

unclebill98

Increasing usage of automated machines and asking for ID are not linked.

Well over 80% of counter transactions can be done via alternative banking services, people either just don't know, don't care, actually cant, don't want to pay the extra fees for some services or just want to chat.

Rebel1977

hardCopy wrote: »

It's also another way to discourage people from annoying the counter staff.

The banks want you to use automated machines for all transactions.

I agree with you I was asked by a staff member while in the que in a AIB branch on Friday what I wanted to do, was told by a friend of mine that if you go the counter in some AIB branches to lodge a cheque/cash with your card the staff member wont do it instead re-direct you to the self service machines!!!

hibernian56

I just came across this, AIB person walked up to me in the queue and asked what I wanted to do, cash a cheque I said, do you have photo ID, yes I do, do you have an account with AIB? No I don't. At that point I swear she smiled and said "sorry but its bank policy since the 2nd January not to cash cheques unless you are an account holder" Sorry, not.

Is it not illegal for the bank to refuse to cash a cheque if its not crossed and made out to the bearer?

Anyone have a financial / legal perspective on this?

Will I have the same hassle every two weeks now? I lodged the cheque with BOI and will now have to wait the customary 5 days before I can use MY MONEY.

Geri Male

hibernian56 wrote: »

I just came across this, AIB person walked up to me in the queue and asked what I wanted to do, cash a cheque I said, do you have photo ID, yes I do, do you have an account with AIB? No I don't. At that point I swear she smiled and said "sorry but its bank policy since the 2nd January not to cash cheques unless you are an account holder" Sorry, not.

Is it not illegal for the bank to refuse to cash a cheque if its not crossed and made out to the bearer?

Anyone have a financial / legal perspective on this?

Will I have the same hassle every two weeks now? I lodged the cheque with BOI and will now have to wait the customary 5 days before I can use MY MONEY.

What's in it for AIB?

You're not an account holder. They earn no money from cashing your cheque. In the old days banks would charge a pound or two to cash non-customer cheques. Probably changed now.

AliPaleface

The banks are trying to get rid of cheques completely so they are slowly making it more difficult to use them. I have the same problem with my pay cheque.

On the way to AIB now to open an account. Not a hope I'm waiting a full week for Bank of Ireland to let me use my own money!

Rebel1977

What I don't like is the way other people in the que can hear your business and what you want to do, no such thing as privacy.

hibernian56 wrote: »

I just came across this, AIB person walked up to me in the queue and asked what I wanted to do, cash a cheque I said, do you have photo ID, yes I do, do you have an account with AIB? No I don't. At that point I swear she smiled and said "sorry but its bank policy since the 2nd January not to cash cheques unless you are an account holder" Sorry, not.

Is it not illegal for the bank to refuse to cash a cheque if its not crossed and made out to the bearer?

Anyone have a financial / legal perspective on this?

Will I have the same hassle every two weeks now? I lodged the cheque with BOI and will now have to wait the customary 5 days before I can use MY MONEY.

wmpdd3

I opened my AIB account in the 90's, when I lodge a cheque I can take the money out instantly, even though the amount is double what I would pay in, in a month.

My other half opened an account last year, it takes 5 days for a cheque to be drawable even if it is for 1/10 of what he usually pays in. Make sure you ask first before you commit to paying this bank their fees for the pleasure.

namloc1980

wmpdd3 wrote: »

I opened my AIB account in the 90's, when I lodge a cheque I can take the money out instantly, even though the amount is double what I would pay in, in a month.

My other half opened an account last year, it takes 5 days for a cheque to be drawable even if it is for 1/10 of what he usually pays in. Make sure you ask first before you commit to paying this bank their fees for the pleasure.

Many older types of accounts have a "pay against ledger" flag on them meaning once a cheque is lodged you can withdraw against it. Most new accounts have a "pay against available" flag meaning you can withdraw only when the funds become available i.e. cleared. As mentioned above this is all down to the implementation of very far reaching anti money laundering and know your customer regulations that Bank's have no choice but to implement.

Rebel1977

namloc1980 wrote: »

Many older types of accounts have a "pay against ledger" flag on them meaning once a cheque is lodged you can withdraw against it. Most new accounts have a "pay against available" flag meaning you can withdraw only when the funds become available i.e. cleared. As mentioned above this is all down to the implementation of very far reaching anti money laundering and know your customer regulations that Bank's have no choice but to implement.

Thanks for that update, why can't banks tell customers this sort of information ?

dewdrop

I thought the days of cashing cheques was long gone. Also the practice in the past of paying out cash against uncleared items was not in my experience very common.

BuffyBot

Thanks for that update, why can't banks tell customers this sort of information ?

99% of customers wouldn't even care/want/need to know.

P. Breathnach

hibernian56 wrote: »

...
Is it not illegal for the bank to refuse to cash a cheque if its not crossed and made out to the bearer?
...

The only bank that is legally obliged to honour an uncrossed cheque is the bank on which it is drawn (using the word bank in the narrow meaning: particular branch).

KoolKid

P. Breathnach wrote: »

The only bank that is legally obliged to honour an uncrossed cheque is the bank on which it is drawn (using the word bank in the narrow meaning: particular branch).

That's what I thought was the case. However I way in AIB today & they refused to cash a cheque drawn on that branch even with ID.
Their policy no apparently is they will only cash cheques for their own customers. Is a cheque not basically a not from the account holder to the bank instructing them to pay the named person the specified amount?
Whats in it for them? Nothing if they cash it. But how much more are they making forcing people to lodge them and the money sitting somewhere for days before the cheque clears??:rolleyes:

P. Breathnach

KoolKid wrote: »

That's what I thought was the case. However I way in AIB today & they refused to cash a cheque drawn on that branch even with ID. Their policy no apparently is they will only cash cheques for their own customers. Is a cheque not basically a not from the account holder to the bank instructing them to pay the named person the specified amount?

Correct. It's one of the most basic tenets of banking. I have just pulled from my shelves a book on the practice and law of banking, and the very first sentence in a 600-page tome tells me that a cheque is defined in s.73 of the Bills of Exchange Act 1882 as "a bill of exchange drawn on a banker payable on demand". Note the words "on demand". The rest of the first paragraph (and much of the rest of the book) makes it clear that without a reason in law to dishonour a cheque, the banker is obliged to obey the order. Dishonouring a cheque without a reason rooted in law leaves the bank open to an action for defamation.

Whats in it for them? Nothing if they cash it. But how much more are they making forcing people to lodge them and the money sitting somewhere for days before the cheque clears??:rolleyes:

I think the explanation is simpler: today's bankers could not be arsed to learn the rules and do business properly.

FionaWalsh

So today I brought a cheque to AIB, O'connell street to cash it. I got the same run around as an earlier contributor. But armed with the info on this thread, I insisted that I was entitled to be paid - It took an hour, they looked worried, many calls to dublin - but no joy. How can bank policy over ride state law? thats if it is in fact law - and doesnt custom and practice come into it - it has been the custom and practice for years that one can demand to cash a cheque from the bank that the cheque is drawn. I was offered no good reason for being refused, other than it was the banks policy. I even felt sorry for the local staff who seemed powerless to do anything. I am mostly indignant that we are, yet again, at the mercy of the banks.


So my options would seem to try the Financial Ombudsman and or Joe Duffy. In simple terms, I feel that an account holder deposited money with AIB in good faith. AIB put said money into their vaults. The account holder decided to give me some of it and gave a written instruction to the bank to release funds to me. The bank refused. In the meantime, the bank has access to what I now consider MY money. (which I desperately needed this weekend!)

In an attempt to be helpful, customer service suggested that I lodge the cheque to my own account, different bank, and maybe they would give me access to the money immediately. I had to explain to them that my bank wasn't holding the cheque writers money in their vaults, so why would they!

So there you go, any suggestions?!

Nervous Wreck

FionaWalsh wrote: »

So there you go, any suggestions?!

Cop on is my suggestion. It takes time to clear a cheque and just because you're indignant, as you said you are, that doesn't change anything. Cheque fraud is rampant and banks have a clearing time to protect themselves and their customers from that. If you want something that's as good as cash, get cash. Spending an hour in a bank (in which you are not even a customer, it seems?) being a dickhead doesn't make you the champion that this post seems to attempt to make you out as. It just means you're being horrible to people working in a bank who have zero influence on the process you're protesting. People really need to grow up when it comes to this stuff.

FionaWalsh

Despite your lack of eloquence, let me enlighten you further:

1. It does not take time for a cheque to clear from the bank on which it is drawn. The money is physically at the bank in question.

2. They did not refuse me on the grounds that they doubted who I was, or that the funds were not in fact available. It was a policy decision by AIB.

3. Some organisations have no choice but to issue cheques, as in this case.

4. I work for myself and had waited a week for the cheque, and will not see this money now for probably 9 more days.

5. I was not "horrible" to anyone. The reason it took so long is because they had to deal with head office as they noted my points.


This is my second time ever posting on boards. If there is anyone with anything sensible or useful to add, please do.

I could take some cheap shots in return, but life really is too short.

P. Breathnach

Nervous Wreck wrote: »

Cop on is my suggestion. It takes time to clear a cheque and just because you're indignant, as you said you are, that doesn't change anything. Cheque fraud is rampant and banks have a clearing time to protect themselves and their customers from that. If you want something that's as good as cash, get cash. Spending an hour in a bank (in which you are not even a customer, it seems?) being a dickhead doesn't make you the champion that this post seems to attempt to make you out as. It just means you're being horrible to people working in a bank who have zero influence on the process you're protesting. People really need to grow up when it comes to this stuff.

That's a most unhelpful response. The bank was wrong. They had a duty to pay out on the cheque, and they refused.

It's now the weekend, and FionaWalsh is without the cash to which she was entitled because the bank has a policy which is in clear conflict with its legal duty.

FW, there is little that you can do when the bank is closed. Personally, I would not take a matter like this to Joe Duffy; I'd make a complaint to the Financial Services Ombudsman. It won't speed up the process of getting your money, but it might put manners on the bank.

FionaWalsh

P. Breathnach wrote: »

That's a most unhelpful response. The bank was wrong. They had a duty to pay out on the cheque, and they refused.

It's now the weekend, and FionaWalsh is without the cash to which she was entitled because the bank has a policy which is in clear conflict with its legal duty.

FW, there is little that you can do when the bank is closed. Personally, I would not take a matter like this to Joe Duffy; I'd make a complaint to the Financial Services Ombudsman. It won't speed up the process of getting your money, but it might put manners on the bank.

Thank you. It was actually your information that I was quoting to them at the bank and it caused them some consternation. I will speak with the financial ombudsman on Monday and let you know how I get on. I personally won't benefit, but feel that the facts pertaining to my situation are solid and clear and will be useful getting to the bottom of whether AIB are entitled to make such policy decisions.

Have a great weekend

KoolKid

Good luck in taking this further.
For my part I now refuse cheques from my employer as their branch are refusing to honor them as far as I'm concerned.

PS Joe Duffy would love this one. If you do get there let us know.

Rebel1977

Bit of a joke to be honest I always thought if you had photo ID they could cash a cheque Banks lately are getting back to their old ways of screwing the very people who bailed them out a few years ago. Interesting piece on Matt Cooper show yesterday about BOI new charges for personal customers no doubt AIB etc will follow suit.

noodler

Does AIB then have a record of your cheque being cashed that they can pass on to , say Revenue?

Is this to do at all with undeclared income?

KoolKid

Hardly a matter for revenue if paddy down the road gives me a cheque to cover something I ordered online for him.

wmpdd3

Just in case you are going to the ombudsman, as far as I know you have to receive a full and final answer from the bank before the ombudsman will engage with you. So draft a letter to AIB giving them 10 days to get a reply to you. Then proceed to the ombudsman...

KoolKid

I would be also interested if this is now the banks policy it must be in writing somewhere.