BOLO: Bank scams

Two banking scams to be on the lookout for:

1. Bank holds your checking/debit transactions and orders them so that if your funds are short, they reap the maximum from bounce charges.

- Say you have transactions in a given day for $10, 25 $60 and $490, and in that order. And you have $500 in your account.

Some banks will take the largest first: So you would bounce The $60, and then the 10 and 25. They can then charge you $30 for each of those, rather than just one bounce charge for the $490. Of course, they will say you could buy overcharge protection.

2.Mortgage Escrow scam - Bank holding your mortgage tells Ins Co the value of your house has increased. Doesnt matter what you OWE on the balance. Bank gets the 'float', of course.