I deposited a check which took three days to be posted to my account (available funds). Then I withdrew most of these funds. Two days later, the bank said the check was returned and that I have to pay back the amount of the check. I thought that it was the bank's job to make sure the check was good, thus the reason for the money not being immediately available. Now they say that just because they made it available to me (in my available balance), was no assurance that it was good; that it is not their job to make sure they check was good. If it was not their job, then whose is it? Are they culpable in some way, since they put the money in my available balance?
The bank has to make funds deposited by check available for withdrawal within deadlines established by regulation and law. Their release of the funds is not related in any way to verification that the deposited check is good. The law in this case is the Expedited Funds Availability Act, implemented by Federal Reserve Board Regulation CC.
If the bank makes funds available and you withdraw them, you remain liable for repayment of the check amount if the check is returned unpaid. That's covered by the Uniform Commercial Code as enacted in your state.
The bank is not culpable. It acted responsibly in delaying your access to the funds for three days, and gave you a straight answer when you asked why you were being charged when the check bounced. The wrong-doer in this case is the party that gave you the rubber check.
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The bank has to make funds deposited by check available for withdrawal within deadlines established by regulation and law. Their release of the funds is not related in any way to verification that the deposited check is good. The law in this case is the Expedited Funds Availability Act, implemented by Federal Reserve Board Regulation CC.