Bank took check, cleared it then 2 days later decided to hold it

[jcgballard]

We deposited an insurance check, signed by all parties, the bank took the checked, cleared the funds, then 3 days later after I had taken most of money to pay contractors, decided that the signatures on the back where not good enough. They than held my entire account, stopped payment on the bank check I got and now refuses to give me access to the funds until I can get a special form signed by all people on the check. The problem is, my mortgage company, who is Taylor Bean and whitaker, is in bankruptcy and has been taken over by the Government. My bank wants the signature of the guy they say owns the company, but he doesnt anymore so its not possible to get it. They wont release funds and froze my entire account, even some extra money I had. They never notified me and will give me No indication that they will ever release funds. Is this even legal? I thought a bank could only hold funds for so long, I have filed complaints with everyone I can think of. Can I sue them for all the fees I have been charged, and to get my money back? ANy ideas would be appreciated.

 

[jharris352]

You certainly can sue them. I would contact a lawyer and get him/her to pursue the matter for you. I know this isn't what you want to hear but it is the best thing. I had something similar happen to me. They have no right to hold the item indefinitely. They either need to give the item back to you and refuse it, or they need to send it through on a 4-10 day hold. When it clears they are obligated to put it in your account.

I personally climbed BOA's corporate ladder until I got to the Regional VP and threatened to come stand on his desk until he released my $50,000 check. That worked.