Can My Credit Union Hold a Check for More Than 7 Days in the USA?

Question from john, Can My Credit Union Hold a Check for More Than 7 Days in the USA?

Answer from AI:

In the United States, the length of time a credit union or bank can hold a check depends on several factors. The rules are governed by the Expedited Funds Availability Act (EFAA) and the Federal Reserve Board’s Regulation CC.

General Hold Periods

Under the EFAA and Regulation CC, the first $200 of a check must usually be made available for withdrawal by the next business day after the banking day that the deposit is made. The remaining funds can be held for a longer period.

• For local checks, the remaining funds must be made available on the second business day after the deposit.
• For non-local checks, the remaining funds must be made available on the fifth business day after the deposit.

Exceptions to General Hold Periods

However, there are exceptions where funds may be held for longer periods. These include:

1. New accounts: If your account has been open for less than 30 days, the credit union may hold checks for up to 9 business days.
2. Large deposits: If you deposit more than $5,000 in one day, the credit union can hold the amount over $5,000 for a longer period.
3. Repeated overdrafts: If you have overdrawn your account repeatedly in the past six months, the credit union may hold checks for a longer period.
4. Reasonable doubt: If the credit union has reasonable cause to doubt collectability, it may extend the hold period.
5. Emergency conditions: In cases of emergency conditions such as natural disasters or failure of communications or computer equipment, longer hold periods may apply.

Notification of Holds

If a hold is placed on your check, the credit union should give you a notice at the time of deposit explaining the reason for the hold, the amount of funds being held, and when the funds will be available.

Seeking Legal Advice

If you believe your credit union is not following these rules, you may want to consult with a legal professional. They can provide personalized advice based on your specific situation. You can also file a complaint with the Consumer Financial Protection Bureau or your state’s banking regulatory agency.

Please note: This information is intended to provide a general understanding of the law. It is not intended to provide legal advice. Always consult with a legal professional for advice related to your specific situation.