Time Frame on Checks Held for Collection

Answered by:

Question:

What time frame regulations apply for checks sent to our bank to be held for collection? Is the check held for whatever duration the sender requests?

Answer:

Answer by Ken Golliher:In general, you hold the item for the period of time requested in the collection letter that accompanies the item. I am not aware of any U.S. laws or regulations governing domestic collection items.

Answer:

Answer by John Burnett:If the sender doesn't request that you hold the item for a period of days, you should process the collection and pay or dishonor the item without delay.

First published on BankersOnline.com 8/21/06