Banks and other financial companies are going to change, and some customers will not like it. Along with many other banks, Bank of America has said that they will start following the government’s order and will no longer accept broken bills starting this month. This includes lower-value bills like the one-dollar bill.
Financial institutions will not be the only ones affected by the rule; finally, stores will also be trying to get rid of these kinds of money. Some of the bigger stores, like Target and Walmart, have already started to use the measure to help their customers get used to the new way of doing things.
People think that bills are broken if they are worn out, torn, cut, look discolored, or have been exposed to water. When people try to use one of these bills, they should look for the following types of damage:
- Significant tears or rips.
- Missing corners or cut-outs.
- Permanent stains from ink, grease, or other substances.
- Partial burns.
- Bills worn to the point of not being easily recognizable.
You will not be able to use the bill in any of these situations and will need to take it to your bank to exchange it for a newer form of money. Also, make sure you go during business hours because the ATM will not accept these bills either; a worker will need to handle them.
If the bill is too damaged, the bank won’t take it. Instead, you’ll need to go to a federal government office or certain bank outlets that deal in damaged bills.
The reason for this new rule regarding damaged bills
The main reason for this change in taking damaged legal tender is that people are becoming more worried about counterfeit coins and bills, which cost the government a lot of money every year.
The process will begin with the one-dollar bill because it is the most used and, therefore, the most likely to get damaged (though its mix of cotton and linen makes it more durable). Eventually, all of the bills in circulation will be gone through the same steps. This is to make sure that there are no broken bills in circulation.
Since counterfeiters are mostly interested in low-value bills that are already in circulation, damaged bills are more likely to be fake than younger bills with all the latest security features. As this process of elimination continues, new money will be made with the most up-to-date security features, making it harder to fake.
How to exchange damaged bills in the bank
Right now, it’s pretty easy to exchange a broken bill. This is usually taken care of by banks or credit unions during business hours. If more than half of the bill is still there and they can prove it is real, they will exchange it for a new one. Do not forget that ATMs will not be able to take these bills. You will need to go to a branch and talk to a teller there.
What if the damage is worse? Like if it’s been burned, wet, or torn apart? The Bureau of Engraving and Printing (BEP) will have to help. They will replace the bill for free, but you have to send them the damaged bill along with a form that tells them how it got damaged and what parts you still have. This is to make sure that no fraud is happening with the replacement of the bill.
The Secret Service might look into possible scam if the bill seems to have been tampered with or damaged in a suspicious way. This will only happen very rarely, though, since most bills get damaged from normal use.
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