I am curious to know what it means in the Banking industry if a customer asks "when does this check clear?"

"Clearing" refers to the process of presenting the check for payment and getting it honored. We often refer to checks presented by other banks as "in-clearing items."

So, "When does this check clear?" rightfully refers to the date on which the check is actually paid by the bank on which it's drawn.

Some will confuse the issue and suggest that "clearing" refers to when the funds represented by a deposited check are available for withdrawal. That is a function of Regulation CC and the time limits on holds found there.

John Thanks for the reply! That is part of the problem I am having with my Bank is that the Manager told me that a cashier's check clears right away after correcting the teller that told me 5 to 6 days. I ended up being a scam victim because my Bank gave me bad information! I was selling a motorcycle on the internet and was over paid luckily they just wanted the money and not the motorcycle! If the Manager had just said funds are made available right away on a cashier's check I would have asked more questions, but she said they were good right away!
Thanks again for the reply! Joe

You might want to be sure that the bank manger didn't tell you that you recevied "immediate availability" for the check. There is a big difference between that and telling you that the check would "clear". Many Banks make the funds from cashier's checks avaialble immediately instead of holding them for several days because those checks are normally "good". If you have had an account with your bank for a while and have a good record with them (no overdrafts) then this would have most likely been the case. However, even if your bank made the funds available to you immediately, that does not mean that the check is guaranteed to clear. No bank can know that until it happens.
There seems to be a movement afoot to blame the banks for the carelessness of the customer. The fact that scams such as the one you mentioned have been well publicized in the media and the fact that someone paid you with more money than you actually asked for are good reasons to doubt the check you were given would clear. Undoubtedly, had you told the manager of your bank about the circumstances under which you received the check, they would have taken steps to ensure that you and they were not victimized.
BC

BC- The Manager told me a cashier's check is good right away after correcting the teller that told me they took 5 to 6 days to clear. I was not up on the law that says it is the customers reponsibility to make sure a check was good or not otherwise I would have called the Bank of America branch! I had never heard of the Nigerian scam before this, but I wish I would have. The only time I had a check this big was when I was finacing my home 3 years ago and since I have been Banking at this Bank I had never taken a cashier's check to be cashed. Here in Pennsylvania our Attorney General wrote a letter to the community of Bankers plus they had FDIC alerts. I was Naive in thinking No way is someone going to send me a counterfeit check that they would be in some major trouble alas these people have found a flaw in our Banking system and our Government will spend Billions to rebuild a country we just blew-up, but we will not go after overseas criminals. These criminals are in this country and they are probably working or have worked in our Banks. I was told once by security company that you have to think like a criminal to stop a criminal! I guess I don't think like them!

What customers fail to realize is that their bank didn't get any money for it either. Why should a bank lose a ton of money because a customer is a victim? It is not the bank who is victimizing the customers, it is the scammers. Please don't think that the bank is responsible for the ignorance (that is not a bad word, it just means that you did not know and possibly had no way of knowing) of its customers. Believe me when I say that I wish that the education of the public about banking, in general, was feasible. I'd be the first one at the podium with Reg CC in my hand.

I'm sorry you had to go through this. I have had a couple customers with the same issue, one of whom did lose some money, and I know that it is a bad situation. Please take this as a learning experience and share that experience with those around you whom you might be able to help to avoid a similar situation.

JP- I appreciate your comments. What you have to understand is that being a Banker you have notice of these scams the customer doesn't. Right? Here in Pennsylvania our Attorney General Mike Fisher sent a letter out to the community Bankers Association plus they had the FDIC alerts. What you as a Banker has to look at is something unusual from a customer. I do not go to the Bank every Day or every Month or year for that matter with a check for $7500. Don't you think as a Banker you have a responsibility to ask questions when a customer comes in with a huge check knowing that there are a lot of scams going on or at least making the customer aware of these types of scams? The easiest way to stop this would be to Have the Bank verify the cashier's check is good before they release the funds! I beleive the technology is there to do this quickly. This has been a learning experience, but I am still suing my Bank because I asked "when does this check clear"? And the Manager said cashier's checks are good right away!

Anon--I wish this were a question of technology. In many cases with the larger banks, especially, it is next to impossible to get in touch with someone who will verify that the check was issued by their institution. Most smaller banks still do this, but an increasing number of larger banks have discontinued this practice. In a normal situation, I would contact the issuing bank with a check number, payee, and amount to verify not only that the check was issued but that the check has not been altered. This is a common practice in the industry, but as I stated, it is not always practical or even possible.

Regarding the suing of your bank: Feel free. There is nothing to stop you from initiating such a lawsuit. However, you will still be held liable for the money because you initially received benefit from the check and there is no requirement for your bank to guarantee the funds on this check.

What is stopping them from investigating you for the possible knowledge that this checks was counterfeit? It sounds ridiculous from your standpoint, I know, but not from your bank's, especially with your refusal to accept the loss.

Regarding the public knowledge of counterfeit checks: How is is that far-fetched to expect a reasonable person to believe that a piece of paper can be printed in such a way as to resemble a cashier's check? How long has currency been counterfeited? Would it not be more difficult to copy the intricate patterns and colors found in money than to copy a check?

You're going to do what you decide is the right thing to do. I can't change that. If your bank acted wrongly, I hope a remedy is found. But again, please take this as your education about this topic and don't be shy about sharing your experience. That is the only way that your friends and family will know how to handle a similar situation if and when it happens to them. I'd educate everyone on the planet if it were fesible, but it's just not.

(stepping off the soapbox)

JP- Thanks again for your comments. I contacted the Police right away when the Buyer said he could not buy the bike right now and he wanted the rest of the money to pay for a freind's operation when I told him we entered into a contract he did not respond which he had very quickly before this. I had saved all of the e-mail's and I had the Western union receipt plus the Fed-Ex package the check came in and I sent all of this to the Secret service. I have learned quite a bit from this and now I know a trained Bank Teller should not have cashed the check it was an obvious counterfeit and I was the only one in the Bank at the time I cashed the check, so you can't blame that on being busy. If I only knew then what I know now!

JP- I have a question for you why would Bank of America not notify the FDIC about the counterfeit check I received? Don't they have to report this?