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#2194671 - 10/04/18 03:04 PM New Account Hold
Linkpars Offline
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Kentucky
We have a new account that we placed a hold on for just 2 days. Would this still be considered an "Extended Hold" or a "Standard Hold". Any information is greatly appreciated.

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#2194690 - 10/04/18 04:02 PM Re: New Account Hold Linkpars
Adam Witmer Offline
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It's hard to say. What was the item and amount of the hold?
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#2194694 - 10/04/18 04:07 PM Re: New Account Hold Linkpars
P*Q Offline

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Did you check your new account disclosure as well? If the account falls under the new account window, there may be an automatic hold if disclosed properly, therefore no need for a hold notice (we run into that often here at my bank, we receive a hold notice on a new account but we remind staff that there is no need because our Reg CC disclosure given at account opening informs them of this). And typically a two day hold falls under the case by case hold and not an exception hold, exception holds are usually longer.

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#2194696 - 10/04/18 04:13 PM Re: New Account Hold Linkpars
Linkpars Offline
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Kentucky
This was a personal check from another bank, to open the account with us for $10,000, and we held the entire amount. We were told that a "New Account" can be held up to 9 days, but it still needs to be listed as an extended hold, even if it is 1, 2, 3, etc days. To me that doesn't make sense. I will have to check our new account disclosures to see exactly what it says.

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#2194712 - 10/04/18 05:33 PM Re: New Account Hold Linkpars
rlcarey Offline
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Galveston, TX
"still be considered an "Extended Hold" or a "Standard Hold"."

I don't understand the context of this question? It would be a new account hold if you so provide in your availability disclosure.
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#2194725 - 10/04/18 06:35 PM Re: New Account Hold Linkpars
Linkpars Offline
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Joined: Jan 2007
Posts: 179
Kentucky
Let me ask this then. If we place a new account hold, can we hold up to nine days. Meaning if we just choose to hold 2 days we can?

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#2194729 - 10/04/18 06:52 PM Re: New Account Hold Linkpars
burkemi Offline
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You don't have to hold the check at all, depending on your appetite for risk, knowledge of the customer, the person who wrote the check, etc. etc. etc.

But yes, you can choose to be more lenient to your customer and place a 2 day hold rather than a 9.
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#2194753 - 10/04/18 08:14 PM Re: New Account Hold Linkpars
Adam Witmer Offline
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Burkemi is correct that you can always delay availability for a time period that is less than the maximums found in Regulation CC. Regulation CC sets the maximum times that funds can be delayed, meaning that you can always delay it less than the maximum - or not at all if you so choose.
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
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