Credit Union Restricted Account Access So Withdrawal is Not Possible

[curiousv]

Jurisdiction

Washington

My relative got two cashier's checks deposited directly in her account on Feb. 24 2017 total amount of 20k. Today it is 3rd week credit union has restricted account access so funds and were not available for withdrawal. When asked this CU said we need to verify/validate the check deposited because they think it is a scam or bogus check and we want to protect or our member. But they could not specify when funds would be available.

Is this common to hold the funds for such long time? when we check at ATM it shows funds fully available but when try to withdraw it says not possible.

Are their any rules to protect consumers against such practice? what is allowed time limit for bank/credit union to hold funds like this?

if there are any rules or law please refer me to such in state of WA

 

[adjusterjack]

A federal law, the Expedited Funds Availability Act (EFA), contains rules that allow banks to delay or "hold" funds deposited by check. You may want to review the account agreement you received when you opened your account for details about your bank's funds availability policies and procedures. A bank must give you a copy of its deposit availability disclosure upon request.

eCFR — Code of Federal Regulations

Wikipedia has a summary:

Expedited Funds Availability Act - Wikipedia

I think the bank is not complying with the law.

 

[mightymoose]

This is not uncommon at all. Your bank should have notices that funds MAY not be available after deposit. The larger the deposit the longer it tends to take. The time it takes to verify a check varies. For example, a check from a government entity would likely become available after a couple days as where a large check from Uncle Joe in Botswana might take a few weeks.

Nothing unusual at all, and all you can do is wait.

 

[curiousv]

A federal law, the Expedited Funds Availability Act (EFA), contains rules that allow banks to delay or "hold" funds deposited by check. You may want to review the account agreement you received when you opened your account for details about your bank's funds availability policies and procedures. A bank must give you a copy of its deposit availability disclosure upon request.

eCFR — Code of Federal Regulations

Wikipedia has a summary:

Expedited Funds Availability Act - Wikipedia

I think the bank is not complying with the law.

Yes I agree my credit union ...(its so big that CFPB covers it) has violated law and still being arrogant. Thanks for link...I found remedy and act...most likely I will use this EFA and sue them in small claims court