Bailout Watch 524: C11 Chrysler Busy Bouncing Checks

by Robert Farago

Published: May 9th, 2009

bailout watch 524 c11 chrysler busy bouncing checks

Chrysler’s stiffed a member of our Best and Brightest:

When I purchased my ’09 300C I traded in an ’05 that had a Chrysler extended service contract with time and mileage remaining. I called Chrysler and they gave me all of the information for obtaining a pro-rata refund as per the contract. I faxed it over and got very quick service. I had a check from Chrysler in the amount of $363.62 in under two weeks. I cashed it at my bank and today my bank mailed it back to me: Insufficient Funds! The check was drawn on a JP Morgan Chase account. I guess the bankruptcy is going to strike close to home.

Robert Farago

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4 of 23 comments

Pch101 on May 10, 2009
My credit union sent a note with the statement this month teling me they would put a 3-5 day hold on any check drawn from a long list of banks. If I were you, I'd be worried about your credit union, moreso than the other banks. It may not be as liquid as you think.

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Lw on May 10, 2009

GS650G: More likely the banks on that list do business in areas with high unemployment. To avoid the cost of bounced checks, they are likely targeting the banks that have clients who are bouncing checks. No banks will have liquidity problems. The FDIC prevents it. On another blog I read, a guy was denied a credit card based on his zip code. The letter from Capital One said that they didn't even run his credit score.. They just looked at the zip code and said no thanks.

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GS650G on May 11, 2009
If I were you, I’d be worried about your credit union, moreso than the other banks. It may not be as liquid as you think. Considering CU have far more in reserves than banks, are not part of the FDIC rather the FCUA instead, and were prohibited and restricted from getting involved with all the risky nonsense the banks did, I'll stay with the CU. Banks have tried to kill off crdit unions for years, through restrictive regulations, appeals to congress to allow them to buy credit unions, all sorts of things. CU issue their own notes backed by deposits. The vast majority are profitable as the depositors own shares. The credit cards are self backed too. if you are not in a credit union it might be time to look for one.

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Segfault on May 11, 2009

If Chrysler shirks its warranty and service obligations (that would include lemon law buybacks, as well as all existing warranties--including those which predate the Obama guarantee), they might as well close down their plants. Same goes for GM.

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