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#79209 - 05/09/03 05:04 PM Check Holds For Savings Accounts
edh1701 Offline
New Poster
Joined: Oct 2002
Posts: 10
Is there a check hold law that covers savings accounts in the State of Illinois? I would also like to know how long can a check hold be set for savings accounts under federal law? The only rule that I've been able to find states that if a bank provides immediate availability for check deposited to a customer's transaction account and places a corresponding hold against the customer's savings account, the hold against the savings account cannot be for a period longer than the bank could have held the funds in the transaction account.

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#79210 - 05/12/03 04:19 PM Re: Check Holds For Savings Accounts
Dave M_TCA Offline
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Dave M_TCA
Joined: Oct 2000
Posts: 682
Wherever my most benevolent em...
To my knowledge, the only 'hold law' is Reg CC, which doesn't apply to savings accounts, except in the instance you mentioned, but I guess that I wouldn't make it a habit of exceeding the maximum allowable under Reg CC, anyway.
_________________________
David J Mulkerin, CRCM
All opinions expressed are mine and not those of my employer and are not to be taken as legal advice.

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#79211 - 11/11/03 04:55 PM Re: Check from out of town
Anonymous
Unregistered

I recently recieved a check from Valley Bank and trist Co for $3,000 although the otem I'm selling is only $100.00, the customer wants me to send the remaining balance to a person in Nigeria, this smells like a scam to me what should Ii do?
John
jdb058@yahoo.com

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#79212 - 11/11/03 10:42 PM Re: Check from out of town
RBanker Offline
Power Poster
RBanker
Joined: Jul 2003
Posts: 2,675
Austin Texas
Absolutely put the brakes on - FAST!
This is the new scam going around now - Let your buyer know that you will be depositing the item in your bank and will not ship the product until you have knowledge that their check has cleared. You could also call the issuing bank and ask a few questions about the item you were given, I would give good odds that it's counterfeit, uncollected, something....

Should you find that this is a legitimate item, I would have a concern about being 'used' to 'launder' money to a SDN country - you may find your bank completing a 'watch' form on you because you are doing business in Nigeria. be very careful.
Last edited by TexTrainer; 11/11/03 10:44 PM.
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#79213 - 04/24/04 03:01 PM Re: Check Holds for Savings Accounts
Anonymous
Unregistered

I am resurrecting this again. I learned at a recent seminar that although savings accounts are exempt from Reg CC, if we give the depositor a Funds Availability disclosure when the account is opened, we have now contracted this account under Reg CC & must follow the rules as if it is a transaction account. Could this be true?

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#79214 - 04/25/04 03:59 PM Re: Check Holds for Savings Accounts
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,618
Galveston, TX
If your contractual agreement with the customer doesn't indicate that your funds availability disclosure excludes savings accounts, then yes, in my opinion you have created a contractual liability to provide availibility of funds as outlined in your funds availability disclosure. I always review for this and recommend to banks to not do this as it reduces your flexibility to handle these accounts.
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#79215 - 06/25/04 04:09 PM Re: Check Holds for Savings Accounts
Anonymous
Unregistered

After hearing Ken Golliher's webseminar yesterday on Holds for Tellers(a great seminar by the way)we found out we have an issue with our MMA accounts in that we have been giving out the reg cc disclosures. This creates a problem as we have been thinking of changing our policy to not accepting certain types of checks for deposit into a checking account, but instead putting into a savings, mma accounts. Since we gave them the reg cc now we have to live with it. Other than sending out a notice to each of our MMA accounts advising them we no longer consider savings/mma accounts to fall under reg cc, is there any other way to correct this? We are coming up on the time when we mail our annual privacy notices and if need be could incorporate with this mailing.

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#79216 - 06/25/04 05:18 PM Re: Check Holds for Savings Accounts
Dave M_TCA Offline
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Dave M_TCA
Joined: Oct 2000
Posts: 682
Wherever my most benevolent em...
229.18(e) says 30 days notice before implementing a change, unless the change is to the customers benefit, then it can be sent out within 30 days of the change.

Put a new notice in everyone's statements. No one reads them anyway. If called on it, you disclosed in a timely manner. But, it does have to be "clear & conspicuous" (comment E1) so you will have to point it out.
_________________________
David J Mulkerin, CRCM
All opinions expressed are mine and not those of my employer and are not to be taken as legal advice.

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#79217 - 11/20/04 07:40 PM Re: Check Holds for Savings Accounts
Anonymous
Unregistered

I actually heard from some one that banks and credit unions in Maryland can not put checks deposited to savings or checking can not have a hold on the funds unless it's over $5000.00. Does any one the answer to this. Is this a real law or am I hearing it wrong.

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#79218 - 11/20/04 07:43 PM Re: Check Holds for Savings Accounts
Anonymous
Unregistered

Quote:

I actually heard from some one that banks and credit unions in Maryland can not put checks deposited to savings or checking can not have a hold on the funds unless it's over $5000.00. Does any one the answer to this. Is this a real law or am I hearing it wrong.



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#79219 - 11/22/04 04:48 PM Re: Check Holds for Savings Accounts
Dave M_TCA Offline
Platinum Poster
Dave M_TCA
Joined: Oct 2000
Posts: 682
Wherever my most benevolent em...
You might want to post this question in the Maryland folder.
_________________________
David J Mulkerin, CRCM
All opinions expressed are mine and not those of my employer and are not to be taken as legal advice.

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