My friend deposited a check for $3000 from a place in IL. In two days, the check cleared the bank. She withdrew the money and sent a moneygram to Canada. A week later the bank said the check was no good. She is now overdrawn by $3500. Why did the bank do that? Is it her fault? Why didn't they wait to clear the check?
The process of checks clearing is confusing. What probably happened was that the check was deposited, and any hold the bank was allowed to place on the funds reached its mandatory expiration date, but the check had not finished going through the payment system. When it did get to the paying bank, it was returned. That means it reversed itself and went back to the bank of deposit where they took the money back out of the account into which the check was deposited. With that money taken out, other checks are likely to be returned for nonsufficient funds.
The bank didn't wait any longer than it had to, to process the check. The system just isn't as fast as the times allotted for checks to clear.
In this case the bank reversed the deposit and wants their money back. Your friend now has the unpaid check and should be demanding a cashier's check or cash for it. She may also be able to request the fees she was charged. Collection may be another matter, unfortunately. It depends on the source of the check.
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The process of checks clearing is confusing. What probably happened was that the check was deposited, and any hold the bank was allowed to place on the funds reached its mandatory expiration date, but the check had not finished going through the payment system. When it did get to the paying bank, it was returned. That means it reversed itself and went back to the bank of deposit where they took the money back out of the account into which the check was deposited. With that money taken out, other checks are likely to be returned for 