Placing a Hold at Time of Deposit

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Question:

Our bank's availability policy is to make all checks available the day after the deposit. We use a case by case hold to extend the hold to two days. Can you tell me if the decision to place a case by case hold can be placed by an officer after the customer leaves the bank? Our auditor believes that we must get specific information on the check if we do not provide the hold notice at the time of the deposit. She insists that the person who accepts the deposit place the hold. We mail the notice out the same day as the deposit is made, and I understand that we cannot charge OD fees if we do not place the hold at the time of the deposit.

Answer:

Sounds like you've got a good grasp on the requirements of Reg CC, and your auditor needs a little refresher training on the requirements. The one thing I'd clarify about your analysis is that you can charge OD fees, but your notice that you mail to the customer must state that the customer has a right to request a refund of the fees if the check that was held clears the paying bank. You only have to refund the OD fee if the customer actually requests the refund.

First published on BankersOnline.com 10/25/10