Bank hold on YPN check

Bank to place hold on YPN funds for 11 business days?

[NaturalHigh]

When depositing my YPN check, my bank said there would be an 11 business day hold on the funds. I went to the local Citibank branch and they said it could not be cashed there either, so I was forced to deposit at my bank. They said they could normally call and verify funds at the issuing bank, but Yahoo had a 3rd party block on that service.

So now my funds are on 11 day hold ending December 27th. Anyone else have a similar experience or advice?

[abbeyvet]

If your currency is not the same as the currency of the check, this is pretty standard procedure. It is not 'putting a hold' on it, it is giving it time to clear.

It would seem rather a long time if your currency is the same as that of the check.

[NaturalHigh]

I'm in California (not far from Yahoo actually) and the check is written of a Delaware bank account. Currency is USD.

That does seem like a very long hold to me too, and I'm not sure what I can do about it.

[garyr_h]

" If your currency is not the same as the currency of the check, this is pretty standard procedure. It is not 'putting a hold' on it, it is giving it time to clear.

It would seem rather a long time if your currency is the same as that of the check."

Right now YPN is only available to US citizens, so I would hope they don't give me a check made out for Real (BRL).

[sailorjwd]

Natural,

I thought banking standards say that it can't take more 5 days for an out of state check. Never heard of an 11 day hold. Of course that is when depositing the check but money should be withdrawable by the 6th day.

[HughMungus]

Hard to believe this story when he says he tried to deposit it and then says he tried to cash it. Pick one.

[andrea99]

Time to go shopping for a new bank. Talk to the branch manager or an officer of the bank, explain the origin of the checks in question and offer to open an account if these checks are paid immediately.

Unless you (or Yahoo) have a bad credit history they'll open an account on those terms.

[edited by: andrea99 at 9:44 pm (utc) on Dec. 12, 2005]

[syber]

Hard to believe this story when he says he tried to deposit it and then says he tried to cash it. Pick one.

He probably tried to cash it at Yahoo's bank. Normally you can do that with a check or request a cashier's check.

[NaturalHigh]

I tried cashing it at Citibank to avoid the hold process at my bank. (Check is ussed from Citibank Delaware) They told me over the phone it would be fine, but at the local Citibank branch they said it was issued from a subsidiary branch of Citibank so they could not cash it.

I have no reason to make up a story, HughMungus. I am a big fan of YPN and recommend it to everyone. Just wondering if others had the same issue, or if it was limited to my bank.

It's deposited at my bank now, on hold until 12/27. Thanks for the advice, andrea99. I will be shopping for a new bank.

[HughMungus]

Why did they say they had to verify the funds?

If I write you a check, do they have to wait to verify the funds? Of course not. So why a check from a huge corporation?

[jhood]

If the check is very large and you have not built a history with the bank, they will hold it til the funds clear. 11 days is a little steep but not unheard of. You can ask the bank branch manager to release at least some of the funds. If he or she won't do it, ask why. It may have nothing to do with Yahoo.

[sailorjwd]

I think you should talk to the manager and bring some backup:

[bankrate.com...]

They will have the funds in their hands within 5 days making interest on it.

[steve40]

NaturalHigh
bit suprised with this have had no problems with 3 different banks depositing checks up to ##,###.oo only when higher than that did have a problem once and moved my banking very quickly

PS had no problem with my Y check this time iether so not sure what advice to give but move banks very quickly

steve

[NaturalHigh]

I guess the issue is with my bank and not anything to do with YPN. The check was for ~$30k so bank is taking the maximum time possible to ensure its not fraudulent. EPP can't come soon enough.

Thanks for that link, sailorjwd. Have a Merry Christmas, everyone. I'll be celebrating a little late this year.

[waxer]

little update for this, i have had the same problem my bank called and citibank said "sorry Yahoo has a privacy block on the acct" so i called yahoo and am waiting on a call back, im sorry but JAN 1st is a little late for me to get my money, i want to buy some stuff already!......

[NaturalHigh]

Sorry to hear, waxer. I got the same answer from Citibank and also tried going through the phone system at Yahoo to find anyone there who could authorize Citibank to verify funds. I had no luck.

Do share if you are able to get ahold of anyone.

[ecaandrew]

If that's the case because the check is so big, that would stink :(

I hope my bank doesn't do that.

[Jane_Doe]

Banks like to take their time with checks so they can play the float with your money. My husband used to work at a major bank and told me that in the current era of technology most checks clear electronically within a few days at most and, of course, the banks know this all too well.

Here is an article on it:
[biz.yahoo.com...]

Here is the link for the current regulations from the FDIC on check clearing in the U.S. -

[fdic.gov...]

You would have to read it over for yourself because it is quite long and there are a lot of exceptions in there, but I think this is the part that would apply to your check:

"Is subject to the requirements of § 229.10(c)(1)(i) through (v) and § 229.10(c)(2) only with respect to the first $5,000 of funds deposited on any one banking day; but the amount of the deposit in excess of $5,000 shall be available for withdrawal not later than the ninth business day following the banking day on which funds are deposited; and"

So depending how you made the deposit, I think this means that in general they would have to release the first $5,000 within a couple of days and the rest within 9 business days.

I got a hold lifted on a local cashiers' check at a Bank of America branch by printing out the FDIC regulations and complaining to the branch manager.

(Also note that state law supercedes the Federal law when the state law check clearing times are shorter).