Sometimes when the bank receives advance notice that a large item is being returned, a hold is placed on the customer's account. How should the hold notice be filled out correctly? It doesn't make sense to say the funds will be available in XX days because if the item is being returned, the customer will never have access to the funds.

Also, once notice has been received that an item is being returned, can the funds be removed from the customer's account immediately, or must we wait until we receive the returned item?

I strongly recommend that you scoop the funds at once and avoid using a hold unless you have a reason to believe that the paying bank will fail to return the item.

Don't forget your responsibility to notify your customer of the notice that the item is coming back.