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Hold on Savings Due to Excessive Overdrafts?

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Question: 
Can a hold be placed on a savings account due to the customers excessive overdrafts on their checking account? Would this be a Reg CC violation?
Answer: 

You can place a hold on the savings account, but for no longer than you would allowed to place a hold on the transaction account.

229.19(e) Holds on other funds.

(1) A depositary bank that receives a check for deposit in an account may not place a hold on any funds of the customer at the bank, where--

(i) The amount of funds that are held exceeds the amount of the check; or

(ii) The funds are not made available for withdrawal within the times specified in Secs. 229.10, 229.12, and 229.13.

First published on 04/21/2019

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