From: Stephen Grammont (islander@midmaine.com)
Date: Mon May 23 2005 - 07:27:30 PDT
Larry,
> So Steve, are you saying "Buyer Beware" is cancelled now and the bank
> should eat the buyer's mistake?
So, when a bank accepts a Bank Check as cash, deposits it into your
account, makes the funds available, then a month later realizes that
the check is a fake, withdraws the money out of your account after
you've spent it... that's the buyer's mistake? Isn't it the bank's
responsibility to make sure that check is good before giving you the
money? Or at the very least making sure the customer is VERY aware
that a bank check is really no better than a personal check?
> The buyer is responsible for two issues: Due Diligence and Inherent
> Risk. Ain't the bank's problem.
True, but those responsibilities ALSO apply to the institutions which
are set up to provide a service. Or when you drive a car and the
engine explodes due to a manufacturing defect the first time you drive
it the driver's fault because he didn't do "Due Diligence" and is
assumed to be taking "Inherent Risk" with a product?
"Inherent Risk" should apply to the bank as well... but if there is
one thing banks DON'T like is risk. If they don't like the risk then
they should figure out a way to mitigate it. Just like the whole
"smart chip" issue with credit cards. Since the card companies pass
the problems along to the innocent party, they don't have an incentive
to figure out a way to mitigate the fraud problem itself. For example,
I take credit cards, someone uses a stolen credit card (how am I
supposed to know the difference? Due Diligence is impossible), I
deliver the goods, a week later I get a notice that the funds have been
deducted from my account. The credit card company assumes no Due
Diligence nor any Risk. They nail me. And yet there isn't a damned
thing I can do about credit card fraud that I am not already doing....
on the other hand there ARE things the credit card companies can do.
steve
This archive was generated by hypermail 2.1.4 : Fri Oct 28 2005 - 22:42:54 PDT