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Home >> Checks/Money Orders >> Checks You Received
Bank's Hold on Check puts Business in Jeopardy
The bank held a $14,000.00 deposit from a local check for seven business days from the day after the deposit was made, but I was told that it would be held for only a "couple" of days. I was not presented with anything to sign nor was I given anything in writing saying that these funds were being held. In the meantime, not only did they bounce a check written from that account (which of course they charged me for), but I had purchased $6,400.00 worth of goods which required a wire transfer. The last day for me to transfer the money was the day before they released the funds.
Thank God I was able to find funds elsewhere. I could've lost my business investor, been penalized for not paying for the goods on time and lost profits for not being able to sell my goods on time. What can I do about this? Is there anyway to hold the bank responsible for all of this aggravation?
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 First, the bank was required to give you a notice of the hold that informed you how much was being held and for how long. It's apparent failure to give you that notice would be a signal that it was going to impose only its standard availability schedule, which might have delayed access to your funds until the second business day after the day of deposit.
With notice, a bank can delay access to funds deposited by local check (checks on U.S. banks have been considered local since February 2010) only until the seventh business day after the banking day of deposit. If the bank wrongfully refused to pay a check on your account based on an undisclosed hold, the bank could be liable to your for damages. In this case, that's the cost of your bounced check fee and any cost imposed on you by a third party as a result of the check being bounced. You aren't entitled to damages for the aggravation of having to juggle your plans for funding the wire transfer.
Published on BankingQuestions.com 5/26/10
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