We have a customer that deposited a check, which we believe to be possibly fraudulent. The check was issued for work in another country and the description doesn't match what the depositor does or the work in the other country. The work is being performed by his girlfriend and we believe the girlfriend is solely on the internet. So there are a number of red flags.
How long does the issuing bank have to return the check to us for reimbursement from our customer's account? Does that time frame differ if the check is deemed to be fraudulent? I have heard up to one year. However, we can't hold the funds that long, or is there a stipulation-reason we could use to hold funds for one year?
If the funds are gone, are we required to return the funds after 90 days? After one year?
We are trying to plan not to get caught having to return $10,000 that we believe to be fraudulent.
Reg CC-I hope you can please clarify the requirements under Reg CC once and for all. When we receive notification of a large item return, our understanding is that our only obligation under Reg CC, is section 229.33 (d) notification to the customer. At that point, we may put a hold on the funds until we receive the check back from the paying bank, but that subsequent hold does not fall under the Reg CC Funds Availability hold rules since Reg CC Funds Availability hold rules only deal with funds that are deposited at the time of initial deposit, rather than subsequent efforts to collect a return check. Otherwise, how would that hold be filled out when the funds are not being deposited, the funds are never going to be made available, etc.
How long can you place a Hold on a Large Check Deposit made to a Savings account?
Are saving accounts governed under Reg CC?
I would like to know more about Expedited Funds Availability Act.
We don't place the regulatory 9 day hold on new account deposits. However, we do place exception holds once in awhile (7 day). A Compliance Trainer told us that if you do the regulatory 9 day hold on new account deposits, you have to do it for all of them - you can't pick and choose. Is that true?
We have a case-by-case hold policy at the bank where I work. We give a written hold notice to customers when we are placing a hold on their deposits. We have one customer who makes multiple deposits each week. Due to the history on the account, we place a hold on all check deposits into this account. The customer is aware of this. Are we permitted to forgo the written notice step of the case-by-case hold for this customer?
I understand that Reg CC availability schedules do not govern checks deposited to nontransactional accounts. However, I have also read that if you give your Funds Availability policy to all account holders regardless of the type of account, as many banks do to avoid the possibility of failing to give it in required situations, that your actual availability policy for nontransaction accounts must match what your disclosure says. Should the bank add a clause to the disclosure or can we qualify the reference within the disclosure to read "funds deposit into your 'transactional' account may be delayed...."
If a customer deposits a cashier's check for $50,000 and the branch wanted to place a case by case hold, should the first $5000 still be made available and the remaining $45,000 held for two business days?
According to Reg CC, does the bank have the right to delay availability for withdrawal of cash or similar means by one business day, and only provided $400 deposited fund available for cash withdrawal?