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Credit Union and Bank Deposit Holds: Fight Back With Mr. Truth

Over the past year, I have three times received an out-of-state check for more than $5,000. Yes, very lucky of me, I know! Sadly, it’s not typical for my monthly income, but those little blips upward have been nice. Ish.

I have to add that “ish” because on those occasions when my monthly income check has been above $5,000, my credit union has placed a nine business day hold on that check. Business days don’t include weekends, so when I deposited my check for more than $5,000 at the credit union today, a Monday, I was told I couldn’t actually use the money in that deposit until next Friday. That’s in December, eleven actual days from now. Back in September, I had the misfortune of making a deposit on a Friday before a week with a national holiday in it, which meant I had to sit and wait for fourteen calendar days — two whole weeks — before I could access my deposit. In each circumstance I’ve run into like this, the credit union has been “so kind” as to grant me 100 measly dollars of my deposit to use for these 11-14 day periods. Jeesh! I’m not made out of extra money, and sometimes I can’t afford to wait that long.

When I asked the tellers and (more than once) the managers of the credit union why I had to wait so long to use my own money that had been deposited, the consistent response was first that the credit union had to find out whether the bank cutting my check actually had the money for deposit. The backup response, when I asked why in the Internet age it took 11-14 days for one bank to communicate with another, was simply that “this is our policy.”

Well, today I finally had it. Even with a cashier’s check from a bank, my credit union still told me I’d have to wait 11-14 days to access the deposited moneys. That just didn’t sound right, and this time I was going to do something about it. I called up Mr. Truth for a little assistance.

Mr. Truth advises kids to remember the Expedited Funds Availability Act

Mr. Truth helpfully pointed me to a number of items. The first is the Check 21 Act, aka the “Check Clearing for the 21st Century Act.” My credit union is a participant in this system, which introduces fully electronic transmission of check information, greatly speeding up the process. Under this new system, it should not take 11 to 14 days for my credit union to obtain verification of sufficient funds in a check’s originating account.

The second item Mr. Truth pointed me to is the Expedited Funds Availability Act. Codified in U.S. Code Title 12 Chapter 41 and realized in the Code of Federal Regulations, the law says that at least $5000 of the balance my out-of-state check has to be made available to me within five business days. That’s not what my credit union has been doing, and “any federal credit union or credit union insured by the National Credit Union Share Insurance Fund” must abide by the law.

The third item Mr. Truth pointed me to is the National Credit Union Administration (NCUA) website, on which a body can find out if one’s credit union is either a federal credit union or a credit union insured by the National Credit Union Share Insurance Fund. Mine is the latter, and therefore must abide by the above law.

Thank you, Mr. Truth! Thanks to you, I went back armed with this information and cornered my credit union into acting within the bounds of the law. My deposit? Cleared. If you find yourself in a similar situation, Mr. Truth can help you, too. Mr. Truth will set your deposit free.

6 thoughts on “Credit Union and Bank Deposit Holds: Fight Back With Mr. Truth”

  1. Norman Smith says:

    I just recently had problems with my credit union (Pentagon Federal Credit Union) on their deposit (9 day hold) policy, which was not compliant with federal laws. After I stated to them the laws they removed the hold and gave me access to my deposit.

    Thanks for your very valuable research and information. There are consummers who are taken advantage of because of their lack of knowledge.



  2. tapeworm in cats says:

    Thanks for another informative web site. Where else may I am getting that type of information written in such an ideal means?
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  3. JoAnne Keierleberk says:

    My credit union has put a 20 business day hold on a check I deposited. It was from a reputable nationally respected company. I was told by the company that it was drawn on a zero balance sweep account to protect the funds. My credit union did not seem to care about that piece of information. I have not heard of such a long hold which in effect makes the funds unavailable for a month. I was treated as if I was doing something wrong.

  4. eric scales says:

    I deposited a 8500 dollar check into my viriva credit union today they told me nine days because its a new account when i already open the account with money two weeks prior to that now this doesnt sound right so please somebody let me know what to do

  5. Anna at a Credit Union says:

    You should work on the other side for a few months and see ALL the Cashiers Checks that return as Fraud or Counterfeit. Don’t think for a minute that Payroll checks are any different, they return as NSF. I am one of the mean people on the other side trying to make sure you do not spend money that may not really be there!

  6. E L Hanson says:

    I recently 8 months ago now, have started an account with a local credit union. I have been made aware (because I got dinged so many times now) that if I deposit funds on the same day as my I try to use the funds, even if there wasn’t a “hold” put on my deposit. EVEN IF the deposit was made the same day as debit card transactions grocery shopping or other payments I have made came through, I am constantly getting charged a $30 fee for being over drawn!! I estimate this has cost me almost $60 to $90 month since I opened this account in Dec. 2016 (so $500 to$800 now). I used to have Wells Fargo, and before that USBank, and have never seen anything like this. I was always told by the banks for 40 years now, that at midnight all the deposits for the day are input and then the transactions (checks etc.) are ran through after!! ( And that has been what has happened for me for many, many years (Wells Fargo always had the 4 o’clock rule, except for on Fridays, it was 6 o’clock. ) I refuse to pay anything now or use money EVEN IF I DEPOSIT CASH until I have made my deposit!! Which is many times very inconvenient!! I have to make sure I have my deposit in prior to spending any of the money! (Even if I have checks or cash in hand and running errands, I have been told by the Credit Union, it depends upon the TIME these things go thru. Now we are talking about minuets instead of days!!) I recently deposited a$27,000.00 check on a Friday afternoon , It came from a well known bank and from my IRA accounts, so I knew they probably had a bit of a hold on it, so the Credit Union made it available on Tuesday (Monday was not a holiday) However, everything I did on that Tuesday was subject to overdrawn funds!! Now the
    Credit Union had that on Friday, they released the hold on Tuesday, but it was AFTER ALL my Tuesday Trans actions went thru,
    and I also put another $650 deposit on Tuesday, so they had $27,600.00 dollars in their bank, and still charged me a $30 overdraft fee!?? They also charge a fee if you bring in cash!! And never once in the last 9 months (according to the Credit Union) did my deposit go in until other transactions took place (that is what they say, but I know I have made a deposit and gone grocery shopping and still credit union says my deposit was after!!) What is with all this?? I am going to change banks or credit unions now, or just keep cash in my safe!! This is just so unacceptable to me!!

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