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Place Extended Hold on a Rapid Refund Check?

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Question: 
Can we put an extended hold on a rapid refund check since it is actually a loan until the person's taxes are approved by the IRS?
Answer: 

Chances are you cannot. Most of these checks will meet Reg CC's definition of a cashier's check or teller's check and will require next business day availability. You can only place a hold on the checks if they meet one of the exception reasons in 229.13. (i.e. new account, check exceeds $5,000, account repeatedly overdrawn.)

Even if the refund check is not a cashier's or teller's check, it is still a check that is covered by Reg CC. If one of the exceptions does not apply, the funds still must be available by the second business day with $200 available the next business day.

First published on BankersOnline.com 4/16/12

First published on 04/16/2012

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