Lost Check, Lost Faith

By: Ron Burley | Source: AARP.org | January 21, 2009

More than a month ago, I gave my son a check for $3,000—drawn off my account at Capital One—which he deposited in his account. Soon after, he received notice that the check had bounced despite the fact that I had more than enough money in the account to cover it.  I called Capital One, which claimed it honored the check. However, I now have a copy of the check clearly stamped “nonsufficient funds” by Capital One. More than a dozen people at the bank have told me they “will look into it.” Then I hear nothing. I lost so much faith in them that I closed my accounts. Still, Capital One may have lost $3,000 of our money. Can you help me unscrew this mess? –Richard, Evansville, Ind.

At first, I wondered how your problem could even be possible. After all, the banking system relies on an absolute ability to track deposits and withdrawals. Did the Federal Reserve’s clearinghouse for transactions between banks make a mistake? A friend who’s a bank executive told me a transaction error by the Fed is as common as Tiger Woods four-putting at the U.S. Open.

Closing your accounts wasn’t the best tactical move—you lose economic leverage when you can’t be counted among the customers. In the future, keep your accounts open during a dispute.

Taking my first step into the money maze, I dialed the Capital One customer service department, which steered me to media relations. The next day I received a call from department chief Pam Jessica Gerardo. She informed me that her accounting crew discovered that an error had occurred. She pointed a finger at the Federal Reserve, saying it had misrouted the funds. However, the evidence indicated otherwise. The check had passed properly from your son's account to Capital One, as indicated by the routing stamps. The insufficient funds stamp came from Capital One.

While unwilling to accept blame, Gerardo did assure me that you wouldn’t have to wait another day to be credited for the missing funds. She also offered to pay any bounced check charges or other fees your son may have incurred.

What is even less understandable than the accounting error is why Capital One let this situation go on for more than a month and why more than a dozen people failed to take your complaint seriously. Gerardo didn’t have an answer to either question.

Richard, we’re glad to see you get your money and glad we could help.