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Feb 22, 2018
10:57:00am
gwalker All-American
Banking question. I just had a client tell me she overdrew her account by $50.
She didn't realize she hadn't transferred some money. A couple of days later, she realized the error and deposited a check. A week after that, she checked the balance of the account and it showed that the check she deposited had cleared the institution of the company that wrote the check, but the amount was not showing as available funds in the account. And the bank had been dinging her account with a daily overdraft fee not only for the two days the account was overdrawn but for every day since. Even after the deposited check had cleared the issuing bank. When she called the bank, they told her they placed a 10 day hold on releasing the funds because she had overdrawn the account.

The only thing I can think is the bank somehow thought she might withdraw the money and checks would come in and cause the account to bounce again. But that still doesn't make a whole lot of sense to me. The bank doesn't have the obligation to pay on bounced checks.

I've known this client for a while and she's very precise. Otherwise I'd think there was something she wasn't understanding.

What am I missing? On what planet does the bank have the right to basically freeze her money for ten days? And, if they do, why do they have that right?
gwalker
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gwalker
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