hold on check without my knowledge, do i have legal rights?

[Reddman]

What is the name of your state? TN

I'm not sure this topic is really appropriate for this forum, but I can't find a better place to ask.

I own a few websites, and I receive a check for ad revenue every month. The one this concerns is usually around $1100 each month. This month, I received a larger than usual check from that company, due to extra work. It was $2700. I deposited the check, received my receipt with the transaction date, and the teller just said thanks and sent me on my way. The next morning, I checked my balance online and the check was deposited, as it is every month without fail. I then did all of my online billing, and paid about 12 bills. Later that afternoon, the bank's "loss department" decided to put a hold on the check because they were suspicious of the large amount. For the record, I've never bounced a check or deposited a bad check. I've deposited monthly checks from this same company for well over a year without any problems. My bank records were clear. They didn't inform me that they were placing the hold on the check, and I had every reason to assume the funds were available. Many of the payments I made have bounced now, and I've incurred almost $500 in unavailable funds penalties. Plus, some of the utilities and creditors I paid are charging me penalties for the bad payments.

Do I have any legal rights in an issue such as this? Is the bank required to tell me they are placing a hold on my funds? Will this hurt my credit?

 

[Debt Guy]

I am sure that deep in the fine print of the account agreement is language that allows them to put a hold on a check without notice -- probably also allows them to spit in your eye.

Personally, I think your best bet is to talk to a manager at the bank and explain what happened, you were not told, you've been a great customer, you teach Sunday School and spend your weekends tutoring disadvantaged crippled children in the cancer ward at the hospital, yada, yada and so forth. Hopefully, they will work with you.

Otherwise, you are at risk for bouncing checks.

Technically, the check you deposited is "uncollected funds" and if the bank allows you to draw against uncollected funds they are at risk of loss if the check you deposited bounces and is returned. Some banks allow customers to draw against uncollected funds and some do not.

 

[Veronica1228]

I am sure that deep in the fine print of the account agreement is language that allows them to put a hold on a check without notice -- probably also allows them to spit in your eye.

Personally, I think your best bet is to talk to a manager at the bank and explain what happened, you were not told, you've been a great customer, you teach Sunday School and spend your weekends tutoring disadvantaged crippled children in the cancer ward at the hospital, yada, yada and so forth. Hopefully, they will work with you.

Otherwise, you are at risk for bouncing checks.

Technically, the check you deposited is "uncollected funds" and if the bank allows you to draw against uncollected funds they are at risk of loss if the check you deposited bounces and is returned. Some banks allow customers to draw against uncollected funds and some do not.

You are correct. Except I want to point out that all FIs must adhere to Reg CC which deals with the availability of funds, and notices of hold. Basically Reg CC states that a bank can hold availability of funds for a non-local check for up to 5 business days. They can also extend it by one day if they provide written notice to you. However, they are allowed to mail the notice, so it is entirely possible that you would receive it on the day the hold falls off of the deposit.

Sorry, but those are the rules. Looks like the OP may not have any recourse.