Monday, October 27, 2008

Too easy credit

June's cheques are bouncing, and that's odd because there's sufficient funds in her account, but no money is being withdrawn at all. There are no mistakes in the cheques that have been returned either, so that deepens the mystery.

When she called the bank, this is what she discovered: The cheques she was using came from a new chequebook the bank had thoughtfully sent over. However, the cheques in this book were not being drawn from her bank account, they were for a credit facility called "Cashline" which June did NOT sign up for.

Cashline acts like a credit card, except in cheque form, and the cheques June has been signing for our contractors have mostly been above the facility's credit limit, hence the bouncing. However, some of the smaller cheques did clear and, holy #%$@, there's a daily rated interest that accompanies each cleared cheque. That's so unecessary for us since we're paying everything by cash (no wonder we're so broke) and hence there is no need for us to incur any interest charge whatsoever.

Fortunately for us, the bank waived all interest charges after June kicked up A Big Fuss over how the chequbook so conveniently appeared with no proper explanation -- or even differentiation from normal bank account chequebooks -- for its use.

Banks can be too proactive with their services to their customers. Automatic approval is not always a good thing, especially when they approve things they don't inform us of beforehand. So BEWARE when receiving chequebooks in the mail. Check the account number very carefully, and make sure it tallies with an account you are familiar with, before using.

Current status of June's Cashline chequebook: shredded and burned, existing only as a carbon emmission polluting the upper atmosphere.

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