Early Release of Hold on Check Clearance

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Question:

I have discoverd that my CSRs are placing holds on checks for one of our customers, sending or giving the notice. They are then waiting a day or so and calling the bank. If the check that they placed the hold on has cleared, they release the hold early. What are your thoughts? I believe they are at the very least circumventng our policies.

Answer:

I don't see a regulatory violation in such actions unless the holds placed are exception holds for "reasonable doubt of collectibility" and there's no substantiation for that doubt. I suspect that the CSRs are thinking with their customer service hats on, and may think the extra hand-holding is a good thing.

If bank management does not want the CSRs to be providing such extra service, then management will have to clarify its expectations of customer service with the CSRs in question.

First published on BankersOnline.com 5/23/11