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#1602416 - 09/12/11 06:08 PM Reg CC
amberleigh Offline
Junior Member
Joined: May 2011
Posts: 34
Kansas
We had a customer deposit a check off of an account of theirs at a different bank. There was not a hold placed on the check at that time. The check was returned to us today as NSF. The customer is several hundred dollars short in their account to charge it back to so the officer said to run the check back through a second time and to place a hold on the account for the entire amount of the check in case they would make a deposit. I am afraid that would be against Reg CC but wanted another opinion?? Thanks!

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Operations Compliance
#1602420 - 09/12/11 06:14 PM Re: Reg CC amberleigh
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Regulation CC allows an exception hold for a "redeposited check." Generally, the idea is based on the fact that the item was debited back to the account and then the customer redeposited it.

Here, it sounds as if the officer is simply making a decision to re-clear the item without notice to the customer.
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#1602426 - 09/12/11 06:17 PM Re: Reg CC Elwood P. Dowd
amberleigh Offline
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Joined: May 2011
Posts: 34
Kansas
Correct, the item is technically being "redeposited" so I didn't think that exception hold would work....

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#1602434 - 09/12/11 06:23 PM Re: Reg CC amberleigh
amberleigh Offline
Junior Member
Joined: May 2011
Posts: 34
Kansas
I mis-spoke, the item it NOT technically being redeposited...

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#1606937 - 09/22/11 05:31 AM Re: Reg CC amberleigh
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,408
Cape Cod
An alternate way of handling the problem would have been to charge the bounced check back to the depositor, sending him the required Reg CC/UCC notice, and contemporaneously redeposit the check to the account for the customer. Then you would have an exception hold available to you, and it could have been for the entire amount of the redeposited check.
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#2093718 - 08/17/16 03:29 PM Re: Reg CC John Burnett
Half Pint Offline
Member
Joined: Sep 2012
Posts: 75
Pennsylvania
Is a notice to the customer required if no fees were assessd for the redeposited check?

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#2093740 - 08/17/16 04:08 PM Re: Reg CC Half Pint
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Yes, the payee is entitled to notice of dishonor.

Banks that automatically reclear returned items without actual permission from the customer assume substantial amounts of risk.
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In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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#2093773 - 08/17/16 05:56 PM Re: Reg CC amberleigh
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,408
Cape Cod
A notice of dishonor is required under Reg CC ยง229.33(d) and under section 3-503(c) of the UCC, unless the notice is waived by the party entitled to notice.
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John S. Burnett
BankersOnline.com
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#2093776 - 08/17/16 05:59 PM Re: Reg CC amberleigh
Half Pint Offline
Member
Joined: Sep 2012
Posts: 75
Pennsylvania
Thank you!!

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