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#1085664 - 11/21/08 02:19 PM Holds on a Particular Checking Account
DCollins Offline
Platinum Poster
Joined: Oct 2001
Posts: 707
We recently started offering a checking account to individuals that were unable to open a checking account else where because of information from chexsystems. We consider this account as high risk customers.

We are placing case by case holds on all of the deposits made into this account. The examiner is questioning if we are allowed to do this because we don't automatically place holds on all of our other checking accounts.

Does anyone know if this is not allowed?

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General Discussion
#1085679 - 11/21/08 02:33 PM Re: Holds on a Particular Checking Account DCollins
rlcarey Offline
10K Club
Joined: Jul 2001
Posts: 78,643
Galveston, TX
"We are placing case by case holds on all of the deposits made into this account. "

IMHO - you have a specific account type in which you really do not apply a case-by-case hold policy as you place holds on every deposit. As such, these account should be receiving a different funds availability policy disclosure.

A. 229.16(a) General

2. The disclosure must reflect the policy and practice of the bank regarding availability as to most accounts and most deposits into those accounts. In disclosing the availability policy that it follows in most cases, a bank may provide a single disclosure that reflects one policy to all its transaction account customers, even though some of its customers may receive faster availability than that reflected in the policy disclosure. Thus, a bank need not disclose to some customers that they receive faster availability than indicated in the disclosure. If, however, a bank has a policy of imposing delays in availability on any customers longer than those specified in its disclosure, those customers must receive disclosures that reflect the longer applicable availability periods. A bank may establish different availability policies for different groups of customers, such as customers in a particular geographic area or customers of a particular branch. For purposes of providing a specific availability policy, the bank may allocate customers among groups through good faith use of a reasonable method. A bank may also establish different availability policies for deposits at different locations, such as deposits at a contractual branch.
The opinions expressed here should not be construed to be those of my employer:

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