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#2261960 - 11/02/21 01:37 PM Reg CC Hold Reasons
Likes to Comply Offline
Diamond Poster
Joined: Nov 2008
Posts: 1,025
In the mountains
Is it ok to add some of our own descriptions for hold reasons for "reasonable cause to doubt collectability"?

Sometimes a customer gives us enough information to doubt the check will be paid. They might just tell us that they were not expecting a payment from XX but would like to deposit just in case it is good. Confidential information reason doesn't seem fitting. Can we create our own that describes that the customer has their doubts about the check being valid?

For example, something like this:

We have reason to doubt collectability for this reason:
The customer was not expecting the check, has questioned the validity or source of the check, or has given some other indication the check may be fraudulent or may not be paid.

Management doesn't want to send for collections, so that's not an option. Deposit the check with a 7th day availability hold is what they want to do.

Is this ok?
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Operations Compliance
#2261964 - 11/02/21 02:00 PM Re: Reg CC Hold Reasons Likes to Comply
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,591
Galveston, TX
Why not just tell the customer that you will send it for collection. Then send it through clearings and credit them in 10 days if it is paid and does not come back?

Why would management want to take a chance on even accepting the check would be my first question. Tell the customer to present the check themselves to the bank on which it is drawn and let them figure out how to do that.
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