My credit union is holding direct deposits to my account for what I feel are excessive periods of time. Are there regulations as to when they must post direct deposits or can they make up the rules as they go along? I notice direct deposits from the federal government are posted immediately, but verified direct deposits received from other banks (i.e. payroll and electronic transfers) are held onto for up to five days after being received before the funds are posted to my account. Is this allowable?
There are two conditions that must be met before a depository institution is required to post deposits received electronically. The institution must receive both final payment for the transactions and the posting information required to apply the transactions to its members' or depositors' accounts.
Institutions receive direct deposits from the federal government and most other payroll direct deposits through the Automated Clearing House (ACH). Assuming that the entries for payroll deposits are received by the credit union in time to post them to members' accounts on their due dates, the ACH rules and (for share draft accounts) Federal Reserve Board Regulation CC would require that the posting be made and the funds made available for withdrawal on the due date. You should ask the credit union's management about when the files for posting the direct deposits are received, and ask why, if they have the posting information on time, they are apparently ignoring the ACH rules and Regulation CC.
If you don't get a satisfactory answer, you can contact the state banking regulatory body, if yours is a state-chartered credit union, or the NCUA for contact information about filing a complaint, or you can simply vote with your feet and take your banking business elsewhere.
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There are two conditions that must be met before a depository institution is required to post deposits received electronically. The institution must receive both final payment for the transactions and the posting information required to apply the transactions to its members' or depositors' accounts.