NFS Deadlines

[NickViper1024]

What is the name of your state (only U.S. law)? Texas

Hello,

Last week, I wrote a check out of the wrong checkbook on accident. I caught the mistake when my bank notified me that the check was presented for payment and there was NSF to cover the check. I was contacted by email, and in that email it said I had until noon that day to figure out what to do and reply to the email. My only correspondent with this particular "NSF Agent" of my bank is via email. She would not answer my phone calls.

I came up with several ideas. She shot down my first idea and gave a valid reason why. I then spoke to my bank's Customer Service via phone and spoke to two individuals who advised me that at the very least I could do a "stop payment" on my original check, pull out cash from my other account(s) and pay the check's payee in cash and have them withdraw the check from payment consideration thus avoid all NSF fees from all parties. I immediately asked for them to issue the stop payment. I then notify the NSF agent that I issued a stop payment on the check. Her reply was "I will return the item. And there will be an NSF fee of $[amount]."

Since this contradicted what I was told by two people over the phone I called back to Customer Service to see what's the deal. I got someone different who told me that the NSF Agent is correct: Once the check is presented for payment, there is no getting out of the NSF charge. That's when I realized that I actually have the funds needed to cover the check in a different account. I immediately made several internal transfers and notified my NSF Agent that I have moved funds around to cover the check. This was at 11:10 AM (remember the deadline was noon.) She replied back a few minutes later saying she had already returned the check almost an hour ago.

After I was notified that the check was returned, I went back and forth with Customer Service about the issue (remember, I can't talk to the NSF agent over the phone, she refuses to answer.) On the one hand with one person I was told that they had a lot of leeway on when they can return checks. On the other hand, I was told that the noon deadline was strictly mandated by the Federal Reserve. Remember also that I was told that a stop payment can help me avoid NSF charges when apparently it cannot.

Does the Federal Reserve (or any law) mandate that banks must wait until noon under ALL circumstances to return a check? Even if the client has stated they would like to return the check, are they still obligated to return the check AFTER the deadline and not before?

Also, my desire to issue a stop payment stems from bad advise from their Customer Service (and I have a tape of the conversation.) Had I not been fed mis-information, I would not have made a decision that ultimately prevented me from making other, more wise decisions ahead of the deadline. Do you think there's grounds for a case here to have them wipe their NSF fees, and possibly reimburse me for NSF fees charged by the payee of the check in court? Naturally, they won't pay a dime because they I was notified promptly that they would return the check as a result of my stop payment. And they said they "could not help me" regarding the mis-information on stop payments and NSF fees.

[Antigone*of*Greece]

Originally Posted by NickViper1024

What is the name of your state (only U.S. law)? Texas

Hello,

Last week, I wrote a check out of the wrong checkbook on accident. I caught the mistake when my bank notified me that the check was presented for payment and there was NSF to cover the check. I was contacted by email, and in that email it said I had until noon that day to figure out what to do and reply to the email. My only correspondent with this particular "NSF Agent" of my bank is via email. She would not answer my phone calls.

I came up with several ideas. She shot down my first idea and gave a valid reason why. I then spoke to my bank's Customer Service via phone and spoke to two individuals who advised me that at the very least I could do a "stop payment" on my original check, pull out cash from my other account(s) and pay the check's payee in cash and have them withdraw the check from payment consideration thus avoid all NSF fees from all parties. I immediately asked for them to issue the stop payment. I then notify the NSF agent that I issued a stop payment on the check. Her reply was "I will return the item. And there will be an NSF fee of $[amount]."

Since this contradicted what I was told by two people over the phone I called back to Customer Service to see what's the deal. I got someone different who told me that the NSF Agent is correct: Once the check is presented for payment, there is no getting out of the NSF charge. That's when I realized that I actually have the funds needed to cover the check in a different account. I immediately made several internal transfers and notified my NSF Agent that I have moved funds around to cover the check. This was at 11:10 AM (remember the deadline was noon.) She replied back a few minutes later saying she had already returned the check almost an hour ago.

After I was notified that the check was returned, I went back and forth with Customer Service about the issue (remember, I can't talk to the NSF agent over the phone, she refuses to answer.) On the one hand with one person I was told that they had a lot of leeway on when they can return checks. On the other hand, I was told that the noon deadline was strictly mandated by the Federal Reserve. Remember also that I was told that a stop payment can help me avoid NSF charges when apparently it cannot.

Does the Federal Reserve (or any law) mandate that banks must wait until noon under ALL circumstances to return a check? Even if the client has stated they would like to return the check, are they still obligated to return the check AFTER the deadline and not before?

Also, my desire to issue a stop payment stems from bad advise from their Customer Service (and I have a tape of the conversation.) Had I not been fed mis-information, I would not have made a decision that ultimately prevented me from making other, more wise decisions ahead of the deadline. Do you think there's grounds for a case here to have them wipe their NSF fees, and possibly reimburse me for NSF fees charged by the payee of the check?

You have no case. Once the item is presented and there are no funds, the NSF charge will apply. The bank, as a courtsey, contacted you in an effort to have the item paid. The fee would have been assessed no matter what.

[NickViper1024]

I understand what you're saying.

Do you know if there really is a mandate/law/rule/whatever from the Federal Reserve (or whoever) stating that they must hold onto the check until noon?

[Antigone*of*Greece]

Originally Posted by NickViper1024

I understand what you're saying.

Do you know if there really is a mandate/law/rule/whatever from the Federal Reserve (or whoever) stating that they must hold onto the check until noon?

No, it is strictly a bank policy. The Feds have bigger concerns ~ they could care less about whether they tell you noon or 2pm. The fact is that when the item was presented the funds were not in that specific account.

Any phone call or email that you got was as a courtsey. Even if they did contact you and they still decided NOT to pay the item, they are still not wrong.