Hold on Redeposited Local Check Over $5000

Answered by:

Question:

How long can we place a hold on an account for a redeposited local check over $5000? We suspect kiting. Is there any way to impose a hold that exceeds 7 days?

Answer:

For a local check over $5,000 there is every likelihood that you would have received a notice of return before the fifth business day. If that assurance isn't adequate for your bank's sense of security, an alternative would be to refuse to accept the check for deposit.

First published on BankersOnline.com 1/9/06