Credit Card Arbitrage – The Checks Clear
All is well with the world again. After depositing the checks on Monday and being told they would take 11 days to clear, I was a little ticked. I called the Washington Mutual Branch today to see if I could expedite the checks clearing. The conversation went something like this…
WaMu: It’s our policy to hold credit card checks for 11 days because most of them bounce due to insufficient funds. It’s also an out of state check so we have to hold it for 11 days. The best I can do is release $4,900 tomorrow, and the rest of it in 11 days.
Me: That’s not good enough. Let me talk to your manager.
WaMu: Hi sir, as a courtesy to you, I can release $2,000 right now, $5,000 tomorrow, and the rest in 11 days.
Me: That’s not a courtesy. I don’t want any courtesies. I gave you two checks for $16,800, and I want my money.
WaMu: Well, how much to you want right now?
Me: I want all of it right now.
WaMu: I’m sorry I can’t do that.
Me: You’re holding my money hostage. Please stop treating me like a criminal and assuming my checks won’t cash. I’ve been a customer for 8 years and never had a problem.
WaMu: I can try and call the credit card company to check the funds. Do you have a copy of the check?
Me: No, I don’t have a copy of the checks, I gave them to YOU to cash!
WaMu: Hold on a second, let me talk to the teller.
(On hold for 5 Minutes)
WaMu: I found a copy of your check, I’ll call them and then call you right back.
Me: Thank you.
(15 minutes later)
WaMu: I got a hold of the credit card company and the checks are OK. You’re money is available.
Me: THANK YOU!
And just like that, all $16,800 was available immediately. It’s important to note I never got mad or yelled at the supervisor, that wouldn’t have gotten me anywhere. I stayed calm and they eventually were able to help me out. My faith is now restored in Washington Mutual. I can now rest a little easier knowing my money isn’t in limbo and I’m finally earning some interest.
Posted on Friday, March 16, 2007 @ 10:27 am by BudgetFreak
Filed Under: Banking , Credit Cards , Savings
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on 08 Apr 2007 at 6:08 pm 1.Robert said …
This is a fascinating story as it unfolds, Budget Freak. What an education it is in navigating the financial world. I am grateful for you in relating this great adventure to us as it unfolds.
on 11 Apr 2007 at 6:50 am 2.BudgetFreak said …
Thanks for stopping by Robert! I got my first interest payout of $26 a bit ago for about 2 weeks worth of interest. Not too shabby for free money!
on 13 Apr 2007 at 12:54 pm 3.CV said …
Stumbled upon your blog while perusing a whole lotta others. I liked yours though because it has the added benefit of the fact that you are also starting up (2 months) as a PF blog.
Quick Question about this post though…
If WaMu did hold your check for that number of days, does that mean that those funds cannot earn interest if you simply deposited it into your Savings account, even with the bank hold? Or does the hold just mean that you cannot take the money out yet?
I’ve taken into account that you had planned to put the money in your ING account first instead of your WaMu savings.
‘CV
on 15 Apr 2007 at 8:31 am 4.Passerby said …
Nice blog here!
In order to answer the last comment here, generally funds are available to earn interest, it is a matter of them being available for withdrawal. Working for a fin-institution, I understand completely both sides for WaMu and for the customer. Generally if you can prove that the checks have cleared, your bank should have no bones about removing those holds…At the same time, realize that they are in a sense protecting you, I’ve seen honest people have large checks bounce for strange reasons…
Best of luck with your arbitrage!