Banking question?

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My bank recently implemented a rule that says no more cashing checks....you MUST deposit them first and then withdraw. They said it was due to fraud and gives greater traceability. Anyone else run into this?
 

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Webster Bank...think they may be native to New England. Exact rules are no more cashing checks. They're claiming that in the past you could cash a "bad" check and then go to another branch and withdraw your entire balance...thus sticking them with the bad check. I always thought when you cashed a check the funds would automatically go on hold.
 
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