In an unusual turn of events, we recently received a plea for assistance from a well-respected actor, not usually the type of person we frequently interact with, but this particular situation sparked our curiosity – particularly due to our familiarity with the individual from television.
This actor, who wishes to stay unnamed, is struggling with an issue not commonly faced by the general population, unless they too receive “residuals” from their parts in American dramas. This scenario demonstrates the shifting global atmosphere and our vulnerability to the indifferent attitudes of both domestic and international banks.
Residuals may not be an entirely familiar concept to all – we were also unsure at first – so, to clarify, residuals are supplemental earnings that a writer, actor or director can acquire if their work is re-aired or reproduced on television, airplanes, streaming platforms, or any other medium.
The actor in question downplayed the amount received in residuals, stating that on occasion he might receive 60 dollars here or 150 there. “But,” he added, “they are quite regular and useful for meeting bills such as electricity or health insurance. Cashing them was not an issue with Ulster Bank before.”
However, since Ulster Bank vacated the Irish market, this actor has resorted to depositing his residual cheques into his PTSB accounts. He vented his frustrations regarding the high cashing fees for US cheques above $100, sharing that the bank used to impose a ludicrous $80 charge per cheque. Moreover, the entire process would often last over two months.
Unfortunately, the situation has deteriorated as the bank has now increased the minimum value for cashing a cheque to $250, leaving him unable to cash his residual cheques. Despite attempting to cash the cheques at the local credit union and An Post, he has yet to have any success.
Upon Pricewatch’s suggestion to perhaps contact the studios that send the cheques, with the aim to convince them of adopting a more modern, 21st-century method of sending money, like an electronic funds transfer, the reply was not as hoped. Pricewatch had already given this a shot, to no avail. The studios were adamant and preferred the traditional method.
“I was informed they wouldn’t change their process. Can I do anything, or could you maybe assist”, he asked.
We do enjoy tackling a challenge, hence we took it upon us to investigate whether there was a solution to this. So, we headed to PTSB, wanting to grasp why the minimum cheque amount had increased from $100 to $250. Additionally, we wished to understand why an €80 or even more, would be charged to cash a single cheque.
The first thing that occurred was the bank reached out to our reader to explain his predicament, which they promptly did. Following this, the situation was articulated to us by a spokeswoman.
“When a customer submits an international cheque for processing, they will incur charges from the global bank from which the cheque has been issued”, she clarified.
“PTSB has no say nor impact on the fee charged or the processing time of the international bank. PTSB merely imposes a fixed €8.50 administrative charge. Moreover, additional charges levied by the overseas banks, deducted at source, apply to every individual cheque.
From our history, we can confirm that the average fee is $150. Since 2023, we have noted that the charges can rise to a whopping $500,” she detailed.
Should we complain about our banks in Ireland? The spokeswoman mentioned that during the previous year, PTSB only processed two US dollar cheques under $250 (possibly from our acting reader). It was discovered that 62 per cent and 48 per cent of the fees were deducted by the international banks from the respective cheques.
To safeguard our clients’ interests, we’ve halted the processing of overseas cheques under €250 in the corresponding currency due to the substantial fees hampering customers. We now encourage our clients to utilise EFT/Swift transfers for payments, ensuring they receive maximum cheque value in a much shorter period of time.
We sought advice from the Central Bank on how our aspiring reader might cash his residuals. The response wasn’t promising, with the Bank’s representative stating they are unable to discuss individual engagements with regulated institutions.
This left us at a dead-end. Our aspiring reader is unable to establish a US bank account as a non-resident; the film and television studios seem immovable, seemingly capitalising on his residuals cashing inability. Additionally, American banks have free reign to impose any service charge, likely in a bid to discourage cheque usage and remove the cumbersome service.
As a unique suggestion, we proposed he could compile all his now worthless cheques, frame, and auction it. However, our idea did not seem to excite him much.