Can a bank refuse legal tender ? (EURO)

D3PO

Just stumbled across a conversation in work today where the usual moaning and groaning about the lack of customer orientation in our good ould banks.

Somebody mentioned that BOI will only allow you deposit coin on a Wednesday. Surely hes pulling our legs ?

I wouldnt have thought a bank can refuse to lodge legal tender. Thoughts , comments and clarifications welcome.

coylemj

The concept of 'legal tender' only applies in the case of paying a debt and in the case of coins, they are only legal tender up to 50 coins while notes are legal tender in any amount. That means that if you don't owe the bank anything, they can refuse any lodgement (notes or coins). If you do owe them money and insist on making a lodgement, you can offer it in notes and they must accept it but they are not obliged to accept more than 50 coins in one transaction.

What is the maximum number of euro coins that a shop is obliged to accept in any single transaction?

The following is an extract from the Economic and Monetary Union Act, 1998:

“10(1) No person, other than the Central Bank of Ireland and such persons as may be designated by the Minister by order, shall be obliged to accept more than 50 coins denominated in euro or in cent in any single transaction.”

http://www.centralbank.ie/paycurr/notescoin/Pages/FrequentlyAskedQuestions.aspx

amdublin

Sure they can. They don't accept it after 5pm or whatever their closing time is either.
Sorry, but what I mean is they can define their rules of when or when not they will accept large coin amounts - I would imagine it is something to do with that a coin lodgement takes longer than notes and Wednesday might be the quietest day of the week.

Spocker

Already discussed on the BoI forum here: http://www.boards.ie/ttfthread/2057130701

D3PO

interesting thanks for the clarification guys.

Another clear sign of the distain our banks have towards their customers. The mind boggles.

amdublin

D3PO wrote: »

interesting thanks for the clarification guys.

Another clear sign of the distain our banks have towards their customers. The mind boggles.

I don't know one could argue it's better customer service

. Do I really want to be queuing on a Monday for ages while all businesses are lodging their weekends coin takings. Better I know that x day is when they take coins so might be better if I avoid then.

D3PO

amdublin wrote: »

I don't know one could argue it's better customer service

. Do I really want to be queuing on a Monday for ages while all businesses are lodging their weekends coin takings. Better I know that x day is when they take coins so might be better if I avoid then.

I understand the argument but

1) They generally have a seperate counter for businesses so wouldnt be a problem
2) You always have the option of the automated machines for most transactions.
3) You regularly see people taking much longer doing the most basic of transactions at the counter.

regadless I dont think its a reasonable approach for a bank to take, could you imagine your local garage telling you to bring your car back a different day as the job would take too long and they could service 3 or 4 other cars in the time it would take and therefor it was a better thing to do from a customer perspective ?

Prioritizing some services over others would not be tollerated in most industries so I dont see why banks think they are special.

Whats next, allowing customers jump the queue because they are deemed more important ? Slippery slope tbh.

Jim2007

D3PO wrote: »

Prioritizing some services over others would not be tollerated in most industries so I dont see why banks think they are special.

They don't! It is customers who think they are special - they expect to pay next to nothing in bank fees and then complain about the service! You don't expect garages to give you free petrol do you?

And no the argument that banks can make up for free banking in other ways does not fly! Which is why fees are having to be reintroduced and are common in mainland Europe. Apart from the nearly free banking facilities, the only other service people avail of is debt and there are often issues with that which means banks have to spend more trying to collect what is owing to them!

The reality is that banks could be a lot more profitable if they could get shot of the dead beat customers, but that would be socially unacceptable. So they need to encourage customers to leave.

coylemj

D3PO wrote: »

....could you imagine your local garage telling you to bring your car back a different day as the job would take too long and they could service 3 or 4 other cars in the time it would take and therefor it was a better thing to do from a customer perspective ?

Prioritizing some services over others would not be tollerated in most industries so I dont see why banks think they are special.

Whats next, allowing customers jump the queue because they are deemed more important ? Slippery slope tbh.

Can you try to understand it from the perspective of someone who has to pay bank charges but virtually never sets foot inside a branch?

You think that you can accumulate a mountain of coins at home and then, at a time of your choosing, simply march into your bank and expect a well paid official to process your coins?

People think that the banks are there to run some kind of social service, they are not. They are there to make a profit and if that means restricting when people can lodge coins or any kind of cash then I'm all in favour of it.

The fact is that it's eventually dawned on banks that they don't make any money from most branch transactions apart from FX, that's why they are pulling back on branch services.

oldyouth

I know a good few businesses that have a coin exchange agreement with local pubs. The business gets the coins exchanged for free and the pub gets the much needed coin without bank charges.

Added perk is that you can have a swift one while conducting the transaction

D3PO

Jim2007 wrote: »

They don't! It is customers who think they are special - they expect to pay next to nothing in bank fees and then complain about the service.

Most sane individuals have no issue with bank fees provided they get the service they pay for.

So what exactly are you saying. Should people not complain about the banks at all and just accept whatever half arsed service they are willing to provide ?

D3PO

coylemj wrote: »

Can you try to understand it from the perspective of someone who has to pay bank charges but virtually never sets foot inside a branch?

I am one of those people so I can understand that perspective extremely well.

You think that you can accumulate a mountain of coins at home and then, at a time of your choosing, simply march into your bank and expect a well paid official to process your coins?

I just heard this story but yes I do think somebody should be able to do this if they queue like anybody else. As for "processing" putting bags of coins on what appears to be nothing more than a weighing machine and then finishing the lodgement is hardly the most taxing or time consuming thing a well paid official as you put it would have to do in the day.

Ive been in branches in the past where people making lodgement or withdrawals have been at the counter for 10 minutes odd. Perhaps next the bank should put a transaction time limit on things and then just fling these people out of the queue ?


People think that the banks are there to run some kind of social service, they are not. They are there to make a profit and if that means restricting when people can lodge coins or any kind of cash then I'm all in favour of it.

If you can explain to me how a bank can maximise their profit by not accepting certain transactions on certain days Im all ears ? Yes is possible the labour costs on some bank transactions are onerous or if you will loss leading but the moment you decide to price something at a certain rate then you have to know full well the consequence of that.

The fact is that it's eventually dawned on banks that they don't make any money from most branch transactions apart from FX, that's why they are pulling back on branch services.

Services are not always there to make a profit. Look at support or warranty departments in most companies, they dont exist to make large margins they exist to act as an auxiliary and complementary service to they profitable parts of the organisation. Their value is in providing a positive customer experience so as to retain customers.

I dont bank with BOI nor did I or do I have any coin to lodge I just overheard this conversation. What I can say however is that I wouldnt give them or any bank my business in areas that are profit making for them (Loan, FX, Credit Card etc) if they treat the rest of any business I may put their way in a different manner.

.

BuffyBot

D3PO wrote: »

Most sane individuals have no issue with bank fees provided they get the service they pay for.

So what exactly are you saying. Should people not complain about the banks at all and just accept whatever half arsed service they are willing to provide ?

If you want to make that comparison, you most likely wouldn't have a branch to use in most locations with the money personal customers bring in.