If an ordinary checking account has a hold placed on it, and that same account has a regular direct deposit going into it, does the account owner have the option of moving the direct deposit to another account at another bank which is unaffected by the issue with the first account with the hold? Can the original bank prohibit someone from making any changes to the direct deposit arrangment as long as the account remains on hold?
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The beneficiary of the direct deposit always has the ability to redirect payments to a different bank. The bank with the hold has no say in the matter. Contact the payroll department or other party that originates the direct deposit and ask to complete a new direct deposit authorization.
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