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60-Day Restriction for Depository Account

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Can I restrict an account up to 60 days for investigation purposes when depository account experiences return items that return as fraudulent or unauthorized? Also can the 60-day restriction be extended after each returning deposit? When do I start counting the 60 days? When the last return item is received? EX: receive 1st return item on 10/1- 60 days is 11/29, receive 2nd return item on 10/3 can I extend the restriction until 12/1, so on and so on?

That would depend on what "restrict" means to you and what legal authority you could muster to support whatever action you are contemplating. There is no federal law that allows a bank to label activity as suspicious and, as a result, automatically deny a customer access to his funds for any period of time, let alone 60 days.

You would be looking to 1) the terms of a contract and 2) a concurrent opinion from at least one judge.

First published on 12/02/2018

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