As some people might remember, just over a month ago I had some issues depositing a cheque into my bank account; in my opinion TD was wrongfully holding my cheque. I did get the money deposited, but it was a lot more of a hassle than it should have been.
That being said, it came to my attention from a friend of mine that when he went to deposit a cheque, she was told that it had to be put on hold, regardless of who it is from.
Now, I say, “who it is from” because it was not an issue of whether the account sees a lot of cheque deposits or not, or the history on the account. It was more on where the cheque was coming from.
Who was the cheque from?
The cheque was from none other the Ontario Student Assistance Program (OSAP). My friend was confused to say the least; not only has she deposited OSAP cheques in the past, but the hold were being placed on a government cheque.
After hearing that her OSAP cheque was being held, only one thing came to mind as to why this could happen; and that is cheque fraud. I can only imagine how many cases their could be; realistically not many people would contest a government cheque.
I decided to ask a bank employee about this case, and he explained that it is common for cheque fraud to occur on those kind of cheques, and it is common practice to hold the cheques.
Now if this was me, I would have not allowed my money, which is going towards my education to be put on hold; realistically, why should I be forced under scrutiny for a cheque from the government because other people might be committing cheque fraud.
On a side note, the bank that my friend banks with is none other than TD; I found it funny how my friend is also facing some problems with TD like I did.
What could you do to avoid your OSAP cheques form being held?
The solution to avoiding your OSAP cheques from being held is to have it directly deposited into your bank account.
This way, your void any potential fraud issues with your bank, as your OSAP will not come in a cheque form.
For anyone looking to have direct deposit for their OSAP, you will need to show the financial aid office your bank information so that they can direct deposit your funds into your bank account.
What do you think of OSAP cheques being held?