Why does the Credit Union have to put a hold on my checks?November 21, 2014
Check holds are governed by Reg. CC—The Expedited Funds Availability Act. They are designed to help the Credit Union manage financial and regulatory risk associated with check deposits while ensuring the timely availability of funds to members. They are used to prevent the withdrawal of funds on an item that may eventually be returned or to prevent fraud activities.
Here are some tips to avoid check holds and receive your funds faster:
- If you are depositing your Payroll check, request that your employer send via direct deposit. It’s the safest and quickest way to deposit your money directly into your checking or savings account.
- Avoid having to process checks altogether by requesting payment via ACH or wire transfer.
- Greg K.