What are some reasons that can be used when a Reg CC exception hold is placed for “Confidential information indicating the check may not be paid”? We are seeing several locations use this hold reason and then write on the Bank’s copy “Spoke with Jane at ABC Bank and they refused to verify funds over the phone.” I think this would not satisfy “Confidential information…” or am I being too particular? Thanks for any help.

You are correct, that is not confidential information. In fact, I am surprised that you get any banks to do that anymore. It is not even a valid reason to place a hold, let alone an exception hold.

Do we have to list the confidential information on the bank's copy of the Reg CC notice?

what confidential information are you purporting to have?

I recently used this reason. We had an account holder who had been a victim of elder financial crimes deposited a check. We called the issuing bank and got nowhere. However, about an hour later the issuing bank's fraud investigator called me and while he could not give me specific details, he did indicate he had "strong" concerns about the check being valid. I documented the conversation in file and advised the customer through a call and notice.

Boss Fan - that is completely different as the bank gave you feedback. The OP said they could not get a response from the paying bank.

Even still, the information you received is not confidential. Your reason for the exception hold would be the paying bank indicated that the check may not be paid.

Examples of confidential reasons:

1. Paying bank said it suspects kiting
2. Your bank suspects kiting (but hasn't cut the cord and closed the account yet)
3. Reasonable belief as to insolvency or pending insolvency of issuer
4. Reasonable belief as to insolvency of paying bank