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I floated my mortgage payment...


Ravenous Wolf
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I in no way advocate anyone doing this...

Being in my new house I had been strapped for cash and I waited until the last possible moment to make my mortgage payment which was last night (last day of the month)...

And since payday is tomorrow, I simply used checks from three credit unions for a deposit to my main credit union. And then last night I called up the mortgage company to make the payment over the phone.

Today I went to those three credit unions and deposited checks from the main credit union I use. I know that I will get direct deposited for pay day into that main credit union thus being able to cover those checks for tomorrow...

Fortunately, I will get "three" paychecks for the month of December and I will be able to catch up on some bills. I don't ever want to do that again...

I used to be the King of Floats but those days are over...

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What you did was kiting, not floating.

Floating is when you write a check against funds you know will be deposited shortly, it is technically fraud but no one ever prosecutes people who write bad checks while waiting for payday.

Writing and depositing checks between banks to illegally benefit from float, e.g. manipulation of the banking system's processing delays, is Kiting and highly illegal. There is a much greater chance that you could be prosecuted if discovered.

You weren't caught so there is no way you'll get in trouble for this but as Grim said with Check 21 you could be seriously hurt in the future.

And you paid your mortgage on time - Congrats and good luck in your new house.

Best wishes,

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The first day I kited...

And the second day I floated...

As for Check 21, it still has a very long way to go for a lot of institutions. Many are so resistant to change and modernization even when it means greater efficiency and cost savings. And I have stopped doing this a very long time ago except for dire circumstances like this, which I do not advocate for people to do.

But as for prosecution, most banks only want to target the paper hangers because fees (like non-sufficient funds, etc) represents such a huge revenue stream for them.

I used to work in at a processing center of a large commercial bank which Wells Fargo bought up. Sometimes at the end of the day, a big group of us would stuff envelopes of the bounced check notices and these stacks were HUGE. It was amazing to see how many people and business (and governmental agencies) bounced checks. It was staggering and profitable...

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I think that check21 really sucks. I was suprised of how quick my payments where being processed so I started managing my money better

Personally, I agree and diasgree.

I know it sounds weird but the one benefit is that if I check my balance, there will be almost no outstanding items and therefore the balance at the ATM is really what I have in my account .

The bad side is that we as consumers will have to watch our accounts VERY closely to ensure that the debits are legit. You still have 30 days to dispute anything in your statement but if you miss the 30 day window this could get very ugly...

Best wishes,

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