I received a check back that was written to me and bounced. The person's credit union that it is drawn on refuses to cash it for me because I am not a member. Is this legal? The check is drawn on them! They tell me that I must present my intent to collect the check in writing, and they will charge me to issue a check to me when the funds are available. This seems completely unreasonable to give up possession of the check and just wait till they get around to it. This can't be legal.
The credit union has to honor the check when presented, but they're wanting you to deposit it in your bank and to have it paid through the normal payment system. Some banks would refuse you because you are not a customer, but most would either pay the item, or charge you a non-customer fee. Part of the thought process here is that when many non-customers are in their lobby using the teller's time, their customers are forced to wait in longer lines and for more time.
Yes, they can do this.
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The credit union has to honor the check when presented, but they're wanting you to 