Skip to content
BOL Conferences
Thread Options
#2232902 - 03/12/20 10:50 PM Exception Holds Only?
Mel in WA Offline
Diamond Poster
Joined: Mar 2013
Posts: 1,265
I heard a large bank in our area no longer processes case-by-case holds, only exception. It's just not worth it. What are others out there doing?

Return to Top
Deposits and Payments
#2232903 - 03/12/20 11:27 PM Re: Exception Holds Only? Mel in WA
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,225
Galveston, TX
Well. with the rapid collection and return of items electronically, that might be backwards - but hey - who can say. When does it take more than 2 days for a return to show up and not have the paying bank miss their return deadline?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2232918 - 03/13/20 02:07 PM Re: Exception Holds Only? Mel in WA
Complycated Offline
100 Club
Joined: Aug 2013
Posts: 168
We haven't placed a case by case or exception hold in over three years. If we have concerns we don't take the check.

Return to Top
#2232923 - 03/13/20 02:52 PM Re: Exception Holds Only? Mel in WA
Mel in WA Offline
Diamond Poster
Joined: Mar 2013
Posts: 1,265
That's interesting, Complycated. How big is your bank? I'm starting to wonder if it's something we've always done, so we just keep doing it without considering the benefit or value.

Return to Top
#2232931 - 03/13/20 03:17 PM Re: Exception Holds Only? Mel in WA
Complycated Offline
100 Club
Joined: Aug 2013
Posts: 168
We're very small ($75 million). It's not worth the trouble anymore.

Return to Top
#2232952 - 03/13/20 05:18 PM Re: Exception Holds Only? Complycated
Carolina Blue Offline
Platinum Poster
Carolina Blue
Joined: Jul 2005
Posts: 960
Lost in a regulatory fog
Our auditors have told us we are one of the few banks they audit that still use case-by-case holds. From my knowledge all of our losses have come from when a deposited check is returned well after 2 days. I've recommended to drop case-by-case holds at our bank but management is hesitant despite the fact they have not been able to show one instance when a case-by-case hold saved us from a loss.

Return to Top
#2233612 - 03/24/20 10:39 PM Re: Exception Holds Only? Mel in WA
Snowgirl Offline
Platinum Poster
Joined: Sep 2003
Posts: 729
We have been doing exception only holds for many years.

Return to Top
#2233621 - 03/25/20 01:06 PM Re: Exception Holds Only? Mel in WA
burkemi Offline
Platinum Poster
Joined: Nov 2013
Posts: 549
We stopped using case-by-case holds 10 or so years ago. ($4.5 B)
_________________________
I reject your reality and replace it with my own.

Return to Top
#2233886 - 03/30/20 03:04 PM Re: Exception Holds Only? Mel in WA
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Those of you with longer memories may recall that one of the Fed's first proposals to update Reg CC (never finalized) included a suggestion that CBC holds aren't effective and proposing their elimination.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  John Burnett