this post was submitted on 06 Sep 2024
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If you need an account with Chase, doesn't that mean they were just withdrawing their own money? On top of that they are now going to jail for fraud.
From what I understand they were basically doing check kiting
I see.
To combat this my bank doesn't allow me to withdraw above what is in my bank account, no matter how big the check is. Like I can see the check money in there but it usually has a note that only a certain amount is usable until the check clears.
My understanding was that the money from the bad check was actually showing up in their available balance before it officially cleared. Then they’d withdraw the money before the bank actually rejected the check.