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Wells Fargo Bank (CA) wrongfully refuses to pay check. Out of options, need help!

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charlottecarrie

Junior Member
So I really need legal advice. I recently started a business and went to Wells Fargo to open a business account. I got a large investment, $100,000.00 to be exact from my uncle in the form of a cashier's check. My uncle was in town for the holidays from the Bay Area a couple weeks ago when he got the cashier's check from USE credit union and went with me to Wells Fargo to deposit it into my new account. They accepted the check with no problems and didn't even need to speak with my uncle. Fast forward three days later and the check has cleared, and I went to the bank to withdraw $10,000 cash to purchase a van I found on craigslist for my business. The lady had the money all counted out but needed approval from her assistant manager to give it to me. The assistant manager pulls up an image of the 100k check and says she needs to verify it. So she calls USE who the check was written from and even the banker who opened my account for me to verify everything was legit. When everything came back good, I guess she still thought something was up so she informed me I would need to actually bring my uncle into her branch to prove that the check was for me, even though it is clearly written out to my business with my uncle listed as the remitter. I feel like they are wrongly withholding my money and this is causing a lot of trouble for me and not allowing me to open my business. It really makes me mad because my uncle came with me to deposit the check in the first place in case they needed to talk to him and they didn't even ask! Then they informed me that there is a hold on all debits/withdrawls two days ago after I have written two checks on the account already (for small amounts, but still). I am very frustrated with wells fargo and feel like they are just trying to keep my money for interest. The customer service line told me I would have to snail mail a letter into some corporate office to resolve this. I have talked to a couple lawyers and other bankers and they say that they have never heard of anything like this. I feel like this lady is out to get me or something, she is so rude and disrespectful towards me and she put a note in my account saying she is the only one I can deal with! I looked at yelp and apparently this branch has tons of complaints about the management and this employee in general. Is there anything I can do to get this hold lifted off my account and be able to use my money? Doesn't Wells Fargo have an obligation to pay a check they accepted that is clearly made out to the account holder and legit? I am confused and I am very angry with the way I have been treated. I do not deserve this! Please give me any advice possible. I will pay an attorney well if anyone thinks they can help me.
 


justalayman

Senior Member
fed reg CC controls the issue. Here is a summary of the pertinent section:

Subpart B: Availability of Funds and Disclosure of Funds Availability Policies

Section 229.10 Next-day availability
States that the regulation requires that cash deposits, wire transfers, and certain check deposits that Congress believes pose little risk to the depositary bank, such as Treasury checks and cashiers checks, generally be made available for withdrawal by the business day after the banking day of deposit.
Section 229.11 [Reserved]

Section 229.12 Availability schedule
States that proceeds of local and nonlocal checks must generally be made available for withdrawal by the second and fifth business day following deposit, respectively. A local check is a check deposited in a depositary bank that is located in the same Federal Reserve check-processing region as the paying bank, and a nonlocal check is one deposited in a different check-processing region than the paying bank.

Section 229.13 Exceptions
Provides certain safeguard exceptions to the availability schedule for new accounts, large deposits, repeatedly overdrawn accounts, emergency conditions, and other circumstances. A depositary bank that invokes one of the exceptions to extend the availability schedule generally must provide notice to its customer.


Section 229.14 Payment of interest
States that a depositary bank must begin accruing interest on interest-bearing transaction accounts not later than the day it receives credit for the funds deposited.

Section 229.15 General disclosure requirements
Requires that disclosures set forth under subpart B be written clearly and conspicuously and in a form that the customer can keep.

Section 229.16 Specific availability-policy disclosure
Stipulates that a bank must provide disclosure statements describing its policy as to when funds deposited in an account are available for withdrawal.

Section 229.17 Initial disclosures
States that banks must disclose their specific availability policies to potential customers prior to opening a new account.

Section 229.18 Additional disclosure requirements
Requires banks to make certain disclosures at all locations where bank employees accept consumer deposits, at automated teller machines, and on all preprinted deposit slips provided to customers. Depositary banks must also send notice to their customers of any changes in their policies and disclose their specific availability policies to anyone upon request.

Section 229.19 Miscellaneous
Provides rules for determining the day funds are considered deposited in various circumstances. Also explains the rules' effects on various bank policies and provisions for employee training and other matters.

Section 229.20 Relation to state law
Specifies that federal law prevails over state law except in some cases in which state law calls for a shorter hold for a certain category of checks.

Section 229.21 Civil liability
Sets forth the statutory penalties for failure to comply with the requirements of subpart B.
Since this is a new account AND it is a large sum of money, they are allowed to delay availability to the funds. I believe it is for up to 9 days.
 

Antigone*

Senior Member
fed reg CC controls the issue. Here is a summary of the pertinent section:



Since this is a new account AND it is a large sum of money, they are allowed to delay availability to the funds. I believe it is for up to 9 days.
I really don't feel like looking up the information since I am on my smart phone, but if I recall correctly, it is up to 10 business days with the funds made available on the 11th. If it is a "local check" the time can be significantly shorter.
 

Mass_Shyster

Senior Member
Rather than attempting to withdraw funds, write out a check made to cash. If they refuse to honor the check, you can sue for wrongful dishonoring the check.
 

Antigone*

Senior Member
Rather than attempting to withdraw funds, write out a check made to cash. If they refuse to honor the check, you can sue for wrongful dishonoring the check.
If there is a UCF hold on the account, the bank is well within their legal rights to refuse to honor the check.

Steve, I'm surprised at you:eek:
 

Mass_Shyster

Senior Member
If there is a UCF hold on the account, the bank is well within their legal rights to refuse to honor the check.

Steve, I'm surprised at you:eek:
But it doesn't sound like there is a UCF hold. It sounds like the bank is arbitrarily withholding funds. Wrongfully dishonoring a check invokes a whole new set of rules that refusing to allow a withdrawal does not.

Assuming the "holidays" meant Thanksgiving, ten banking days have elapsed since then.
 

justalayman

Senior Member
But it doesn't sound like there is a UCF hold. It sounds like the bank is arbitrarily withholding funds. Wrongfully dishonoring a check invokes a whole new set of rules that refusing to allow a withdrawal does not.

Assuming the "holidays" meant Thanksgiving, ten banking days have elapsed since then.
you need to read 229.13 of reg CC.


concerning new accounts:

(ii) Is subject to the requirements of §229.10(c)(1) (i) through (v) and §229.10(c)(2) only with respect to the first $5,000 of funds deposited on any one banking day; but the amount of the deposit in excess of $5,000 shall be available for withdrawal not later than the ninth business day following the banking day on which funds are deposited; and
OP was attempting to withdraw $10k.

there are other exceptions that may apply as well.


My uncle was in town for the holidays from the Bay Area a couple weeks ago when he got the cashier's check from USE credit union and went with me to Wells Fargo to deposit it into my new account. They accepted the check with no problems and didn't even need to speak with my uncle. Fast forward three days later and the check has cleared, and I went to the bank to withdraw $10,000 cash to purchase a van I found on craigslist for my business
there were some subsequent conversations but the OP does not give a timeline. If he tried all of this in the 2 weeks after, it would not have been 10 banking days until last Thursday at the earliest (not counting Saturdays). If Anti is correct, that would make the funds available last Friday. Has the OP attempted to obtain funds since last Friday?
 
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Hot Topic

Senior Member
No one here will take your case, OP. That's not something that reputable attorneys do, e.g., trolling a message board for clients.
 

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