Legal Question in Banking Law in Virginia

Banking Question

With my job I deposit both personal and business checks into my account. My bank has apparently decided(without a letter before the fact), to hold all checks until they clear. The checks are as little has $150.00 and usally no more than $400.00. In the mean time while they are holding the checks they are charging me overdraft fees, from both incoming checks and money I take out from the ATM. So eventhough the money is there and they check clears. I am still paying the overdraft fees. I have never had any of my checks be returned from a client's payment. Is this legal!!


Asked on 5/31/06, 6:44 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Banking Question

Yes, it's legal for a bank to hold checks for a certain period of time, depending on the type of check and location of the originating bank. Some banks will nonetheless make funds available immediately, but even they reserve the right to hold certain checks, or to hold checks generally if you have had checks returned. If you don't like how this bank handles your deposits, shop around for another bank.

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Answered on 5/31/06, 8:00 am


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