Wednesday, June 1, 2011 - 10:26 AMCheck Holding Is Applied With Ambiguity
Lake Michigan Credit Union 
(
3 stars)
My business account is with Lake Michigan Credit Union. The policy of holding checks from my customers for an ambiguous amount of time makes it difficult to avoid overdrafts as my account balance fluctuates as overdraft protection was not made available. Sometimes the hold is for 2 days, which is acceptable or it may be up to nine days. The amount of the check does not seem to matter. It was explained to me that the hold time is up to the teller who is waiting on me. What seems to be the case is that new tellers who do not recognize me will hold for longer days. I would not recommend this credit union for small business as they seem to have policies that are not small business friendly.
8
1. Wednesday, June 1, 2011 - 9:51 PMI am quite certain that there are laws that state you must be notified if your checks have an extended hold on them. The receipt has to print out when the money will be available if an extended hold has been put on your funds. You might want to speak with management or call the NCUA. There are regulations on this. This is even true if done thru a deposit made thru the ATM.
3
rosie43122 posts since
Jan 16, 2010
Rep Points: 383
2. Thursday, June 2, 2011 - 7:56 AMThe check-hold policy is spelled out clearly in T&C. For example, the hold for new accounts is usually more than 8 days. After a month or so, the check hold is typically 1-2 days for amount smaller than $5,000, and 7 days for amount above $5,000. Once a good/old customer, the hold time is minimum. For me at Danversbank, it is next-day availability for any amount.
The bank/credit union is bound by law to notify customers of any hold longer than usual (say 2 days). I doubt that this credit union is any different.
1
51hh623 posts since
Jan 16, 2010
Rep Points: 3,066
3. Wednesday, June 22, 2011 - 12:21 PMHello,
Yes, 51hh is correct. Our Terms & Conditions do spell out our check hold guidelines - most deposits are made available immediately but sometimes there are factors that result in a 2 day or 9 day hold (rare, but it happens). Some examples of this would be larger than normal deposit activity or a relatively new account. And rosie43 is accurate in that all holds are spelled out on the receipt provided at the time of the transaction.
Please contact us if any more questions at members AT lmcu DOT org or 800-242-9790.
Sincerely,
Bill Clancy, LMCU Member Services
1
lmcu2 posts since
Jun 22, 2011
Rep Points: 5
