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#2266952 - 02/28/22 02:41 PM On Us check hold
complyorelse Offline
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Joined: Nov 2007
Posts: 442
U.S.
If a customer tries to cash or deposit an On Us check drawn on another customer's account that does not have funds to cover the check, are we allowed to place a Reasonable Doubt hold on the check or should we reject the deposit? We do have knowledge the check isn't good.

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#2266963 - 02/28/22 03:40 PM Re: On Us check hold complyorelse
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,617
Galveston, TX
Well, if you cash the check, then that would represent final payment to the payee and you would have to go after the accountholder to cover the overdraft. You could not go back against the payee.

If the check was presented for deposit, then just accept it (the first time) and let the item to be returned NSF, as the payee might need that as evidence for legal action against the account holder.
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#2266964 - 02/28/22 03:44 PM Re: On Us check hold complyorelse
HappyGilmore Offline
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Joined: Jun 2004
Posts: 19,527
Pulling people out of the ditc...
if they are trying to cash, i would refuse. depending on the method of deposit, over the counter, mobile or RDC, ATM, or night deposit, it would likely get accepted and then returned NSF. potentially, only the teller window would catch this, other methods would not catch it until processing occurred.
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#2266981 - 02/28/22 05:42 PM Re: On Us check hold complyorelse
complyorelse Offline
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Joined: Nov 2007
Posts: 442
U.S.
If we do accept the deposit, are we allowed and does it make sense to place an extended hold for Reason to Doubt Collectability?

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#2266983 - 02/28/22 05:49 PM Re: On Us check hold complyorelse
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,617
Galveston, TX
It makes no sense at all to me. If the accountholder fails to make a deposit, you are stuck with the overdraft with making it delayed availability.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2266997 - 02/28/22 07:31 PM Re: On Us check hold complyorelse
complyorelse Offline
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Joined: Nov 2007
Posts: 442
U.S.
I agree. Thanks for your input.

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#2267002 - 02/28/22 08:07 PM Re: On Us check hold complyorelse
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,684
Cape Cod
You cannot place a reasonable doubt on an on-us check being deposited by another customer.
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