Cashier's check holding period

[mitgr5200@yahoo]

What is the name of your state? Michigan

I was under the impression that a cashier's check could be immediately cashed. The banks around here have a holding period on them. What is the point of getting a casheir's check then? Is it legal in the banking laws to have a holding period for them?What is the name of your state?

 

[racer72]

The banks are covering your butt because of all the fraud involving cashier's checks. Better safe than sorry.

 

[mitgr5200@yahoo]

Cashier's check

Michigan

The question was, "Is it legal in the banking laws to have a holding period for them?"

 

[Dandy Don]

If you want faster service in the future, have the sender do a direct deposit to your bank account through wire transfer.

 

[Just Blue]

Michigan

The question was, "Is it legal in the banking laws to have a holding period for them?"

It's perfectly legal...as racer said the banks are covering thier butt because of all the fraud ....It's VERY easy to make a CC with a computer...

 

[justalayman]

Now I don't know where to find them but I do know there are check hold limitations. The following does give a bit of info on the situation. Maybe those with the financial institution experience will direct. My institutional experience has nothing to do with banking

Currently, federal law states that deposits of $5,000 or less must be made available to the depositor on the business day after deposit. California law allows banks to hold such checks until the second business day following deposit, even though the advent of Check 21 means banks can get their funds the same day.



In addition, California law does not include a limit on the number of days a check of more than $5,000 can be held, while federal law limits such a hold to one day for local checks and four days for non-local checks.

from: http://democrats.sen.ca.gov/templates/SDCTemplate.asp?a=2671&z=142&cp=PressRelease&pg=article&fpg=senpressreleases&sln=Florez&sdn=16

Now for the OP: this does not release the bank of any recourse they may have should the check be found to be fraudulent in any way.

 

[Veronica1228]

Now I don't know where to find them but I do know there are check hold limitations. The following does give a bit of info on the situation. Maybe those with the financial institution experience will direct. My institutional experience has nothing to do with banking




from: http://democrats.sen.ca.gov/templates/SDCTemplate.asp?a=2671&z=142&cp=PressRelease&pg=article&fpg=senpressreleases&sln=Florez&sdn=16

Now for the OP: this does not release the bank of any recourse they may have should the check be found to be fraudulent in any way.

Fed Reg CC states that a local check can be held for 2 business days and a non-local check for 5 business days. However, there are some exceptions where it can be held longer. If the amount is over $5,000, if your account is new, if you recently went through a period of many overdrafts, and if there is reasonable cause to suspect that the check is uncollectable. These reasons can extend the number of days that the check can be held. It IS legal and it IS common.

I hope that answers your question.

 

[justalayman]

Thanks for the direction Veronica.

to the OP: go to this website. There is all the info you seek and much more.

http://www.federalreserve.gov/regulations/default.htm

the following page of that website explains what you are looking for specifically. What I have copied here is NOT all that is pertinent to your queation. Go and read.

http://www.federalreserve.gov/pubs/regcc/regcc.htm#determin

The following types of deposits must be made available on the first business day following the banking day of deposit (“next-day availability”):


Cash deposited in person to one of your employees.

Electronic payments received by your institution for deposit in an account — An electronic payment is considered received (deposited) when your institution has received both payment in collected funds and information on the account and the amount to be credited. (Under other rules, funds for most electronic deposits are made available on the day of deposit.)

U.S. Treasury checks deposited in an account held by a payee of the check — Unlike deposit types listed in 4 through 8 below, which pertain to deposits made in person, Treasury checks deposited at an ATM owned by your institution (a “proprietary” ATM) must be accorded next-day availability.

U.S. Postal Service money orders deposited in person to one of your employees and into an account held by a payee of the check.

Federal Reserve Bank and Federal Home Loan Bank checks deposited in person to one of your employees and into an account held by a payee of the check.

State or local government checks deposited in person to one of your employees and into an account held by a payee of the check, if your institution is in the same state as the payor of the check. (Note: If the customer desires next-day availability of funds from these checks, you may require use of a special deposit slip.)

Cashier’s, certified, or teller’s checks deposited in person to one of your employees and into an account held by a payee of the check. (Note: If the customer desires next-day availability of funds from these checks, you may require use of a special deposit slip.)
Checks drawn on an account held by your institution (“on-us checks”) deposited in person to one of your employees or at on-premises ATMs or night depositories, if the branch or branches involved are in the same state or check-processing region.

Deposits that include some checks of types not listed above — The first $100 (or the total amount of the deposit if it is less than $100) of non-“next-day” checks must be made available the next day.
Exceptions: When deposits of types 1, 4, 5, 6, and 7 are not made in person (for example, when they are made at one of your ATMs), the funds must be made available by the second business day. Deposits, cash or check, made at an ATM that you do not own (a “nonproprietary” ATM) must be made available by the fifth business day.

 

[jsu888]

Bank of American Check Holding Period.

I made a deposit to B of A in the amount of $300K+ to my checking account on 5/15.
The teller told me the deposit will be available on 5/22.
It was check from a local bank, Wells Fargo. The check maker is a title company.

The title company told me the check was withdrawn from their account on 5/16 and there is no way for them to stop payment.

As of today my funds are still not available.

It sounds like from this forum that the bank can hold the check indefinitely.
No one has said what the maximum holding period is.

What's to stopping them holding it for 10 years?
What if I had a bill to pay or another deal to close?

Are we really not protected from any federal regulations?

John.

 

[justalayman]

I made a deposit to B of A in the amount of $300K+ to my checking account on 5/15.
The teller told me the deposit will be available on 5/22.
.

I even gave the url for the answer to your question and you post this. If you read from the links I provided, you shall learn how long your funds can be held.

 

[pilaf153]

Cashiers Checks/Overdraft Fees

I have a question that relates but is a bit different. I deposited a cashiers check and then the same day saw that it was in my available balance. I then proceeded to use those funds. 4 or 5 days later even after all the money had been issued to the respecting payees and they had recieved thier funds and it showed cleared on thier end. I know this because they were credit cards and I checked the balances and they were 0. The bank then puts me in the negative. I called and they said they could not verify funds on the cashiers check. At this point it had been over a week and half. I then called the bank of the issuing cashiers check and they told me all the bank has to do is call and we can verify over the phone. They said it takes less than a min. I called my bank back and they said they would call within 24 hours. I waited the 24 hours and indeed my account showed in the black again but at this time they retracted one of the payments to my credit cards and charged me 10 overdraft transactions. About $250. Do I have any rights in this matter? What do you suggest?

 

[Veronica1228]

I suggest you start your own thread.

 

[CraigFL]

I ran into this same problem when I deposited a cashiers check from the sale of my home. It turns out that my bank had a policy that large checks like this could be held for up to 7 days(even though my check was on a local bank and was cashed the very next day). It cause seveal problem with checks I had already written and they needed to be resubmitted. I complained to the bank but they showed me their policy which I had agreed to(the fine print notices they send every now and then...). I also asked my banker friend that I use for my business and he said that had it been his bank, it would have been discretionary and since he knew me well, the waiting period would have been waived.

 

[jsu888]

I even gave the url for the answer to your question and you post this. If you read from the links I provided, you shall learn how long your funds can be held.

You had a lot of URLs up there, but I think you are saying that there is no time limit.

 

[Antigone*]

You had a lot of URLs up there, but I think you are saying that there is no time limit.

This thread is 6 years old ~ why on earth are you necroposting???