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#2232902 - 03/12/20 10:50 PM Exception Holds Only?
Mel in WA Offline
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Joined: Mar 2013
Posts: 1,204
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?

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#2232903 - 03/12/20 11:27 PM Re: Exception Holds Only? Mel in WA
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 80,393
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?
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#2232918 - 03/13/20 02:07 PM Re: Exception Holds Only? Mel in WA
Complycated Offline
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Joined: Aug 2013
Posts: 164
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.

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#2232923 - 03/13/20 02:52 PM Re: Exception Holds Only? Mel in WA
Mel in WA Offline
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Joined: Mar 2013
Posts: 1,204
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.

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#2232931 - 03/13/20 03:17 PM Re: Exception Holds Only? Mel in WA
Complycated Offline
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Joined: Aug 2013
Posts: 164
We're very small ($75 million). It's not worth the trouble anymore.

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#2232952 - 03/13/20 05:18 PM Re: Exception Holds Only? Complycated
Carolina Blue Offline
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Carolina Blue
Joined: Jul 2005
Posts: 958
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.

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#2233612 - 03/24/20 10:39 PM Re: Exception Holds Only? Mel in WA
Snowgirl Offline
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Joined: Sep 2003
Posts: 714
We have been doing exception only holds for many years.

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#2233621 - 03/25/20 01:06 PM Re: Exception Holds Only? Mel in WA
burkemi Offline
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Joined: Nov 2013
Posts: 528
We stopped using case-by-case holds 10 or so years ago. ($4.5 B)
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#2233886 - 03/30/20 03:04 PM Re: Exception Holds Only? Mel in WA
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,876
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.
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