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#174682 - 03/30/04 03:04 PM credit card holds
beegee Offline
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Joined: Feb 2004
Posts: 1,092
South
Our bank policy on Reg CC is next day availability. On credit cards we automatically place an extended hold on all credit card checks. Is it acceptable to have a blanket policy to hold on all credit card checks?

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#174683 - 03/30/04 03:05 PM Re: credit card holds
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
No - you can't single out a class of checks. Do a search on credit card checks - there have been previous extensive discussions.
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#174684 - 03/30/04 03:30 PM Re: credit card holds
Pale Rider Offline
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under the Lone Star
Amen to Randy's comments, you will be cited for a violation if this is your policy and practice. We finally had to send all credit card checks above $5,000 for collection. We were taking some pretty big losses, especially in our college towns.
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#174685 - 03/30/04 04:21 PM Re: credit card holds
Elwood P. Dowd Offline
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Next to Harvey
Amen squared.
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#174686 - 03/30/04 08:02 PM Re: credit card holds
John Burnett Offline
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Cubed. (OK, so accuse me of piling on!)
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#174687 - 03/31/04 07:21 PM Re: credit card holds
Anonymous
Unregistered

We are a small rural bank ($150M) in a depressed part of the state and have had a policy of forwarding all of them for collection. This eliminated our losses, albeit we lossed a few customers that were problems anyway.

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#174688 - 03/31/04 08:19 PM Re: credit card holds
Anonymous
Unregistered

1. Can a credit card check be sent for collection if they deposit it in one of our ATM's or the nite drop?

2. Don't we have to place a hold on it in accordance with Reg CC?

3. Do we need to have it written in our disclosures that credit card check will be sent for collection if the transaction does not take place with a teller?

Our branch audit manager stated that all items sent for collection have to be done at the bank's expense. How are others handling this?

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#174689 - 03/31/04 08:25 PM Re: credit card holds
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,227
Galveston, TX
Quote:

Our branch audit manager stated that all items sent for collection have to be done at the bank's expense.




Most banks have established standard fees for sending collection items.

Quote:

Can a credit card check be sent for collection if they deposit it in one of our ATM's or the nite drop?




Sure - why not - your deposit agreement should reserve your right to accept or reject anything for deposit to an account. Just becuse they do it at an ATM doesn't mean you have to accept it. Would you just shrug and run through a bunch of two-party checks deposited through an ATM. I think not.
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