Because if someone signs it over to me and I sign the back of it, I should be able to deposit it into my account via the ATM. I used to be able to do it but no longer.
I don’t understand why you would be confused by this complaint.
Because you didn’t mention the fact that the cheque was signed over in your first post, I would guess.
I don’t think it’s your bank- because my bank does the same thing (and has been for at least 15 years). After a couple of automatic renewals, I get a letter saying that I have to come in and do something on the account in person. I can renew the CD without adding or subtracting money, but it must be done in person.
It appears that the NYS Abandoned Property law controls it, and according to the State Comptroller’s website, funds become abandoned after 2-5 years of no activity ( I guess how long depends on the type of funds) and it looks like the reason is so that bank can’t simply keep renewing the CD and holding on to the money for years after the account holder has forgotten about it or died. In fact, I’m sure of it, because I just looked up my last name on the website and found unclaimed money in my grandmother’s name from an mutual fund which was reported 15 years after she died. Obviously, no one knew to check this company 15 years ago, and although we checked the list of unclaimed funds, we didn’t keep checking for 15 years.
doreen:
Great, so it’s a money grab by the state rather than some asininity of the bank. I wonder how long that law’s been on the books. You’d think that if they’re trying to protect bank customers, the law would mandate that the money be turned ober to the depositor, at least if he/she is still alive, rather than the state.
Damn them, I’m voting out every legislator I can, if I find out that one of the active ones is responsible in any way for this.
Didn’t notice the dormant account question. Yes, after a certain period of time, accounts can be closed for inactivity, or “dormancy”. The length of the period of inactivity required to close a dormant account is prescribed by law and varies from state to state, but commonly ranges from three to five years. Well before the account is closed, you will receive written notice of dormancy status, in addition to an acknowledgement form that can be signed and returned to prevent the account from being assessed penalties (or closed).
If this form is not returned and the account remains inactive, your account will generally begin to be charged a dormancy fee until the prescribed time period passes. At that point, the account will be closed and the funds will be escheated to the state in which the account is held.
Any transaction within that time period will remove the dormancy status and “reset” your account. In the case of a CD, that would include either a full or partial withdrawal, a non-interest deposit, or a renewal.
It sucks, yes, and I’m sorry it happened to you, cmkeller, but the real blame lies with your state abandoned property laws, not the bank.
ETA: Or, what doreen said. I should really read all new responses before replying. :smack:
Ernie Banks fucking sucks.
The state doesn’t keep the money if someone (either the depositor or heirs) turns up and claims it.