Placing Holds on Accounts Not Subject to Reg CC

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Question:

I know Reg CC does not apply to CDs, money market accounts and savings accounts, but can you put holds on these accounts? Does the customer have to notified at the time the hold is placed?

Answer:

Unless prohibited by state law, you can place holds on these funds and there are no specific notification requirements regarding the holds. In my opinion, however, placing a hold without giving the customer adequate notice is not good customer service and could come back to create unnecessary reputation risk.

First published on BankersOnline.com 1/12/09