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How long can banks hold on to money?

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pjepanther

Junior Member
What is the name of your state? California

My bank closed my business account, but I still had a check that came to my business. I converted the check to a draft in my name. The bank said it was fraudulent. I asked them how it could be fraudulent, because I can't steal money from myself. They said I should have just endorsed it and closed my account anyway.

Now, my client says they will cut me a new check in my name, but not until they get the money back. I have been going back and forth with my bank trying to get them to send the money back from the original check. The client's bank sent a hold harmless letter a month ago via certified mail. The bank claims the letter hasn't gotten to that department yet. Then they ask me to get a copy of the letter and fax it to them, which I do.

They finally admit that they received the letter, but now they are saying they will not cut the check back to my client for 25 days. My questions is, can they legally hold on to this money for 2 months after it has been requested back? If not, then what law or institution can I threaten them with to get them to cut the check sooner?

Thanks,

Guy in Banking Hell
 


Veronica1228

Senior Member
pjepanther said:
What is the name of your state? California

My bank closed my business account, but I still had a check that came to my business. I converted the check to a draft in my name. The bank said it was fraudulent. I asked them how it could be fraudulent, because I can't steal money from myself. They said I should have just endorsed it and closed my account anyway.

Now, my client says they will cut me a new check in my name, but not until they get the money back. I have been going back and forth with my bank trying to get them to send the money back from the original check. The client's bank sent a hold harmless letter a month ago via certified mail. The bank claims the letter hasn't gotten to that department yet. Then they ask me to get a copy of the letter and fax it to them, which I do.

They finally admit that they received the letter, but now they are saying they will not cut the check back to my client for 25 days. My questions is, can they legally hold on to this money for 2 months after it has been requested back? If not, then what law or institution can I threaten them with to get them to cut the check sooner?

Thanks,

Guy in Banking Hell
I don't know if I'm tired or weak from hunger or if your post just doesn't make sense. Can you please explain what happened a little more clearly? Why was you account closed? How did you "convert" a check to a bank draft? What exactly was the bank saying was fraudulent? Do you owe the bank money? I just can't figure out what you are talking about here.
 

pjepanther

Junior Member
The bank closed my bank account because they say I fraudulently altered a check made out to my company and changed it to be made out to myself. However, I own the company, so how could this be fraud? The reason I did this was because they closed my business account. I didn't stop to think that I could have just endorsed it to myself. The money was allowed to go through by my client, but then the bank froze my account and eventually closed it because they viewed it as fraud. Now I'm trying to get the bank to send the money back to my client so they can send another check made out to me personally this time. My bank is dragging their feet in sending the money back to my client. I don't owe my bank anything. My question is, can the bank legally hold on to this money for 60 days after my client sent them a letter requesting the money back or is there a certain time period by law that they have to comply with my client's bank's request to send the money back? If so, what is the law and/or is there a regulatory board I can threaten to report them to if they don't cut a check immediately?
 

Veronica1228

Senior Member
pjepanther said:
The bank closed my bank account because they say I fraudulently altered a check made out to my company and changed it to be made out to myself. However, I own the company, so how could this be fraud? The reason I did this was because they closed my business account. I didn't stop to think that I could have just endorsed it to myself. The money was allowed to go through by my client, but then the bank froze my account and eventually closed it because they viewed it as fraud. Now I'm trying to get the bank to send the money back to my client so they can send another check made out to me personally this time. My bank is dragging their feet in sending the money back to my client. I don't owe my bank anything. My question is, can the bank legally hold on to this money for 60 days after my client sent them a letter requesting the money back or is there a certain time period by law that they have to comply with my client's bank's request to send the money back? If so, what is the law and/or is there a regulatory board I can threaten to report them to if they don't cut a check immediately?
First of all, yes you did commit fraud by altering the check. It doesn't make a bit of difference that you own the company. The check was made out to your business, not you. You can't just change the payee of a check because you feel like it. What you did is a crime.

Second, yes it can take 60 days or even longer to get this legal mess that you created straightened out. Your bank is not about to risk taking a loss because of you. You are just going to have to be patient and remember that you did this to yourself.
 

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