AboutJim Meadows Expertise I can respond to most questions concerning consumer and business relationships with US financial institutions. My expertise touches on deposit and loan issues and particularly on strategies to navigate through bank policies personell and practices. I have a degree in Economics, attended law school, Graduate Shool of Banking, and Commercial Lending and Compliance Schools.
Experience I have twenty years experience as a bank CEO. Most of those years were spent operating a bank focused primarly on serving consumer/retail needs. I helped pioneer deposit and loan products for low/moderate income individuals. I currently serve on multiple bank boards and am Chairman of a Commercial Bank in Atlanta.
Question On a Saturday I attempted to deposit a check at a branch of my bank. The check issued by a local school district was drawn on an account at the same bank. I asked for a few hundred dollars cash out of a five figure check. I easily had that much money in my personal account. The teller said they couldn't give me cash beyond $100. They would lose their job if they did not put a three day hold on the check. I took the deposit slip back and changed it to eliminate the cash withdrawal. I then wrote a check on my account for the money.
Does a bank have a right to place a hold on a check involving an internal transfer of funds? The teller could have easily checked to see if the school district's account held sufficient funds. Could I have insisted they cash the computer generated check and fill out the required IRS form?
Answer David, First I suggest you ask your bank for their "Funds Availability Policy". Funds from your deposit by Regulation CC should be available no later than the business day following the day of your deposit. Typically anything different than this would involve an "exception hold" such as deposits to an account which has had NSF activity.
Despite regulations, my opinion is that it is on its face, unreasonable to withold credit to your account for a "riskless" payroll check drawn on the same bank and the bank should provide an explanation if they plan to continue the policy. Jim
