posted on March 29, 2002 05:17:20 PM
We are running into a problem with our bank returning checks from customers after 30 days. And we keep getting the run around on this. The bank person says that they can charge back for up to 2 months after deposit. We seem to remember a new law that did away with that, requiring a speedy resolution of check clearance. Does anybody have any info on this? Where would we go to find out just what the law is? How long should it take for a US check to clear? It is not reasonable for us to keep a customer's check for a month before we ship! It has only been 2 checks, which were quickly made good, but the bank is becoming so aggravating when we try to get information that we thought maybe someone here would know just what the rules and regulations are. Thanks!
PS. How do you suggest to a bank that employees who do phone work should not chew gum?
posted on March 30, 2002 07:41:18 AM
The above message listed a site that had too many items to sort through to try to find out how long a bank has to clear a check.
I believe this site to be more helpful as the answers are in plain sight for viewing.
posted on March 30, 2002 08:08:43 AM
If a check was returned after 30 days by the bank, seems to me there's something wrong with the bank. My experience has been that most major institutions process checks within 7 days -- it's just not good business for them to do it any slower. Once in a while one goes 10 days (Montana), or 14 days if it's from Hawaii or Podunk, Alaska, but never longer than that. I've used HSBC, Citibank, and others and they all pretty much fit the mold.
Is this a major bank, or one of those rural credit unions? If the latter, I'd suggest going elsewhere. I've only had one check returned in 17 years of doing business (last month), and that one bounced within 3 days.
posted on March 30, 2002 11:50:19 AM
I would call the bank and ask for a appointment with the branch manager.
Explain the problem and ask for guidence .
posted on March 30, 2002 12:21:30 PM
I do not take checks because of the same problems you have. From what I have found most states do require banks to show the funds in your account for in state checks 3-5 days and out of state 7-10 days. The problem is they can remove the funds any time in the next 60 days if there is a problem with the account the check was drawn on.
In most banks you never know when a check clears it is either shown in your account right away or in the state required number of days. The problem comes when the check bounces or the account the check is drawn on is closed. I have had them take as long as 32 days to charge back to my account. In most cases on eBay you would have completed the sale and left positive feedback even if you held the check 10 days to clear.
I got burnt for over $400.00 on one check and $75.00 on another before I found this out. Both of these accounts were closed and the people never heard from again. One had over 100 positive feedbacks.
I do not think not taking checks has hurt my business at all.I quit taking them 2 years ago.
posted on March 31, 2002 07:35:54 AM
One reason it can take so long for a check to be returned is -
You have the right to deny any bank transaction that appears on your statement. After you recieve your bank statement you have 30 days to fill out the proper paper work at your bank and deny any check that has cleared. This is not a widely advertise thing but you can do it. I had a utility bill I paid by check years ago that I had to deny and it was on my statement that I discovered it cleared for $4 too much out of a $200+ bill. Had to deny the whole thing. They never got any of it. The check I wrote was credited back to my bank account and the utility company never backed the payment off my account.
Anyway - you have 30 days to dispute anything on your bank statement. That can easily make it 2 months to return to the person that deposited it. I have seen it take over 100 days when I was in the banking field.
posted on April 1, 2002 01:38:35 PM
Thank you for the responses. We have tried talking to bank officers but they were no help. This is a large bank with many erraticly staffed branches.
On the two bounced, one contacted us the same day as we got the bounce notice. She immediately sent a MO. The other was out of town and contacted us as soon as she got home. She also sent an immediate MO. So we got the money, but just didn't know how much more of this can happen. In over 3 years on eBay we have had 4 bounced checks. And each one was made good in 10 days.
