Payroll Deposite Law?

Question

im having a problem with my new bank, since i just changed bank accounts my payroll check was not direct deposit, it was a paper check, so i went to deposit it friday night. Expecting it to be there monday morning i went ahead and wrote some checks for a few bills, etc. Well, its not! they are giving me some bull **** that since im a new customer, all checks have to go through a 7 day waiting period...this is a payroll check though! i know there is a law against holding a payroll check! so it wont be available until next monday! can someone back me up on this law?

Answer 1

Federal Regulation CC governs the availability of funds. In most circumstances your payroll check would be available the day after you deposited it to your account. Your financial institution held the funds as "uncollected" due to your account status as a "new account". Regulation CC allows financial institutions to hold funds longer for "new accounts". Under the reg, any account that has been opened less than 30 calendar days is deemed a "new account". I'm guessing that as you stated you're having a problem with your new bank, that your account falls into the new account class.


This link will show you the Reg CC definition of a new account:

http://www.bankersonline.com/regs/229/229-13.html

Go speak with the bank manager, explain the situation and hope for the best.

Good luck!

Answer 2

I don't believe there is such a law. Most banks will hold a check over $2,500.00 for 7 to 10 business days if they're unfamiliar with either you or the remitter. Since you're a new customer, they're legally within their right to put such a hold on your check.

Having said that, just because they're legally allowed to do this doesn't mean they have to. Have you tried calling the bank?

Answer 3

I've not heard of the law. That is BS, though. Suppose you just wanted to cash your check, would they make you wait 7 days for that?