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 Replies: 84 / Views: 5,454 |
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Pillar of the Community
United States
7123 Posts |
Bobby I dont think accusations is the correct term here ,, I think it all boils down to common sense,, If I give the bank a ten dollar bill for a roll of quarters ,,I do not expect to be charged 20 dollars for that roll of quarters, that is due to the fact that banks are there to deal with the public need for coin and currency.
They receive the coins for face value from the fed and that is what the public deals with in everyday coins, face value,,
The rules all change if I wanted to borrow ten dollars ,, but that was not the case here.
I have retrieved the phone numbers of several agencies within the treasury dept ,, as time permits I will call and ask questions regarding the sale of coins by a federally insured entitiy I belive that in those calls the answer will be based upon the premise that our coinage trades at face value.
Metalman
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Valued Member
United States
344 Posts |
If anyone wants to cut through the chase for answers can call the fedral reserve for free with any and all questions regarding this topic.
Toll-free: 800-333-4460
The Dallas Federal Reserve
2200 N. Pearl St.
Dallas, TX 75201
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Forum Dad
 United States
24170 Posts |
quote:
If I give the bank a ten dollar bill for a roll of quarters ,,I do not expect to be charged 20 dollars for that roll of quarters,
Right, you don't expect it, but if it did you have the option to bank elsewhere. A couple more scenarios that could happen in this situation. They could tell you nope.... not givin' em to you. Perfectly within their rights. Is that illegal? Banks around here charge you $5 to cash a check drawn on their bank if you don't have an account there. So what if they said we'll cash in your $10 bill for quarters, but it's $5 extra since you don't have an account here? Is that illegal? quote:
that is due to the fact that banks are there to deal with the public need for coin and currency.
No they're not. They're a business there to make money, they are not a government public service like welfare or the DMV. |
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Pillar of the Community
United States
7123 Posts |
Banks and banking practices are administered By who ?
Metalman
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Valued Member
United States
179 Posts |
Something nobody seems to realize here...
The credit union was making a coin ORDER. For which they have to pay. They buy their coins, the feds don't give them to them. The credit union owns the coins, same as you own the coins you bought from the mint. Can you sell your coins for a profit? If not, please let me know when you decide to sell them...
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Forum Dad
United States
24170 Posts |
quote:
Banks and banking practices are administered By who ?
Rick, you're confusing banking laws with business practices. Fees that are charged for different services are not regulated. The feds can't tell a bank how much to charge to cash a check or make change. Some have fee-free checking, some don't. Some will make change without an account, some won't. Some will cash a check without an account, some won't, some will charge a fee. This is why you shop for a bank. quote:
The credit union was making a coin ORDER. For which they have to pay. They buy their coins, the feds don't give them to them.
Exactly and although I'm not sure, I'd bet that the bank has to at least pay part of the shipping. That armored car certainly isn't free (or even cheap). So I'd bet they're paying more than face value for them. |
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Valued Member
United States
344 Posts |
Well for me when I get boxes of coins from any bank it is because I had them order them for me. At that time I know I won't be charged more than face value. I wasn't a walk in. Way back some time ago I had called the federal reserve nearest me asking them about getting boxes of coins and they said there isn't any reason if you have an account with a bank then there isn't any reason why they shouldn't fill the order.
I have been to banks that I don't have an account with and several have told me to get a box of coins that sometimes the armored services charges $10.00 for delivery.
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Pillar of the Community
United States
7123 Posts |
I have already looked at how the banks aquire their coinage,, they pay face value,, That is listed on the treasury website in the FAQ's area.
I will be looking into this ,, because I really think that the exchange rate on our coinage is fixed at face value through Federal law ? at this point it is really only an opinion since I have not found the proof in writing .
I do not think that our current circulating coinage is privately owned? otherwise they could not enforce a no melt law for the nickel and cent coins.
I can just imagine charging twice face value to the IRS when I pay my taxes citing some added value for retrieval and aquisition !!
that would fly like a lead balloon.
Bobby I do not think Iam confusing laws and practices with services,, they are definitly two different things,, But our money does not fall under service in my opinion,, that is federally administered.
Metalman
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Pillar of the Community
United States
2254 Posts |
I think this is turning into a very enlightening thread. I really don't think that we will know until someone makes some phone calls. I do think that "accusations" was a little rough though Bobby.  I didn't re-read all of my comments but for the most part everyone worded it as "I think" this would be illegal. What I can't tell is if these posts are getting you frustrated that people aren't accepting your line of thinking or if you're playing devil's advocate here.  Regardless, I am anxious of the outcome. If nothing new posts by the end of the weekend I will probably have to make these calls out of sheer curiosity. There's just something that tells me that these institutions can't make a profit on circulating coins per say. Of course as long as I belong to said branch. lolol I really think if this was the case, then they could do the same thing with deposits correct? You want to deposit $100 into your checking account, and they tell you that your $100 bill is only worth $95, but then they turn around and sell it for $105.... Oh, I don't know. I guess we'll just wait and see. |
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Bedrock of the Community
United States
12437 Posts |
I just got off the phone with a representative from the legal department of CUNA (Credit Union National Association, Inc.). She informed me that there is no specific law or regulation prohibiting a credit union from selling something in excess of face value when it is an item of a"commemorative nature". She said that the 50 State Quarters and Presidential dollar progams were considered to be of a "commemorative nature" even though they are meant for circulating commerce. What was interesting was the fact that she said that usually when a CU sells something over face, it is enclosed in special packaging. She gave me an example of some of their CUs selling the new quarters as issued and they are packaged in an informational card pertaining to that particular state. She was a little puzzled when I asked about a premium on generically wrapped rolls- she thought that it was odd, but there was nothing to explicitly prohibit them from doing it. Her parting words were "If you don't like the policies of a particular financial institution, you can always take your accounts to another place." Moral of the story- "If we can get away with selling circulating coinage for more that face, there is nothing to stop us from doing it"  |
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Forum Dad
United States
24170 Posts |
quote:
I do think that "accusations" was a little rough though Bobby.
There is at least one still showing as of this post, and 6 edited posts. Anyways, I'm sorry if it was a little strong and offended anyone. Yes, I'm playing Devil's advocate here, but I do believe what I'm saying to be true. I just don't understand how it can be perfectly legal for anyone but a bank to sell money. If you look at it on the simplest level, it's kinda silly. The only reason they don't, is because the one's that do will be viewed as unethical and lose business. It's funny though, a lot of the same people that would view banks as unethical for it, would fork over a premium to the Mint for the same coins and not think twice about it. |
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Pillar of the Community
United States
1703 Posts |
Legal,illegal,ethical,unethical,if MY credit Union wanted to charge me $3 for a coin I could get at a bank for $1, three blocks away.I would no longer be doing business with that CU. PERIOD.
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Forum Dad
United States
24170 Posts |
quote:
Legal,illegal,ethical,unethical,if MY credit Union wanted to charge me $3 for a coin I could get at a bank for $1, three blocks away.I would no longer be doing business with that CU. PERIOD.
I agree. |
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Pillar of the Community
United States
2254 Posts |
Thanks for the info Bio. The commemorative aspect is very interesting. Bobby, I certainly didn't take offense. I am certainly not easily offended, and I have pretty tough skin. I just thought that the word accusation made it sound like you didn't approve of people voicing their opinions. In a forum read that is. Face to face all is a moot point, as is most of the potential controversy on boards...  The more I contemplate this, the more I see you point of view, regardless of Bio's info. I guess there's potentially nothing stopping them from doing it except the lack of clientele they would have.... It will also be interesting to know if there is a difference between credit unions and banks. I think anyone can open an account at a bank with enough money to "join", but credit unions live by a different set of rules. I know that I can't join some that are out there no matter how much money I have. |
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Valued Member
United States
208 Posts |
Go to a bank like Commerce or Wachovia, mine were glad to exchange rolls of dollars for face value. The hardest part is that the teller has to go into the vault...
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Replies: 84 / Views: 5,454 |
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Posted 03/16/2007 1:25 pm
