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#2017247 - 06/01/15 12:21 PM Repeatedly Overdrawn & Cashier's Check
HR Banker Offline
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Joined: Oct 2002
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Customer has a $5000 CC. They meet the repeatedly overdrawn definition. If that's the only exception reason that applies there is no hold we can do since it is a next day item, right? The FDIC exam manual gives examples of holding a CC under new account and large deposit reason but not repeated overdraft. Also, the check was being deposited to an account belonging to the payee of the check.

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#2017258 - 06/01/15 01:38 PM Re: Repeatedly Overdrawn & Cashier's Check HR Banker
Doug Hendrickson Offline
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Doug Hendrickson
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If it is a next-day check and you are holding it for the reason that the customer meets the repeated overdraft criteria, you may hold the entire amount until the 7th business day.

This assumes you have this in your funds availability disclosure.
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#2017274 - 06/01/15 02:36 PM Re: Repeatedly Overdrawn & Cashier's Check HR Banker
John Burnett Offline
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John Burnett
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Absence of an example in the FDIC's exam manual isn't evidence that the hold isn't possible. It's just that the FDIC didn't choose to include the example. And frankly, the FDIC's examples for Regulation CC haven't been all that correct.

You can place a "chronic overdraft customer" exception hold on any check being deposited by such a customer.
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#2017281 - 06/01/15 02:55 PM Re: Repeatedly Overdrawn & Cashier's Check John Burnett
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Thanks for clearing that up!

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#2017380 - 06/01/15 06:12 PM Re: Repeatedly Overdrawn & Cashier's Check HR Banker
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
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Next to Harvey
All the absence of the example in the FDIC manual means is that you may have to "esplain" it to your examiners. As indicated, customer status as a repeated overdrafter trumps the check's status as a next day availability item.
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#2150951 - 10/24/17 03:12 PM Re: Repeatedly Overdrawn & Cashier's Check HR Banker
justsayjulie Offline
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Joined: Mar 2014
Posts: 293
back home again
Revisiting this topic, specifically the model form's paragraph on refunding OD or returned check fees caused by the hold. Does that paragraph apply to any of the reasons listed on the model form, or just the "We believe a check you deposited will not be paid for the following reasons"? The asterisk (*) following that phrase and preceding the paragraph is throwing me off.

Thank you.
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