I wrote a check that was deposited and cleared two months ago. The payee's account shows that the funds from the check have been deposited, but my bank has neither received the check from the other bank nor taken the money out of my account. My bank told me that the check might be in the Federal Reserve "limbo-land". What does that mean? How long do I have to wait for the funds to be removed from my account?
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Being lost in "limbo-land" means that the check lost its way on the trip to your bank. Even though it's rare, given the number of checks that are processed, occasionally a check will get stuck in sorting equipment or a shipment of checks will get mishandled or lost.
Unfortunately, there is no deadline for the check to show up. It could pop up next week or next year. Either way, your bank will probably charge your account for it (and it has the legal right to do so).
Published on BankingQuestions.com 2/27/08
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Being lost in "limbo-land" means that the check lost its way on the trip to your bank. Even though it's rare, given the number of checks that are processed, occasionally a check will get stuck in sorting equipment or a shipment of checks will get mishandled or lost.