I open a bank account with US Bank savings account I did some work for a friend and they paid me to check one $200 check and the other $1,000 check I deposited at my bank no problem his bank paid my bank I have a positive balance in my account but the banker decided to place a hold due to suspicious activity and that she wanted to run an investigation to make sure the check was issued by the right person nor will they return the money to the person's bank they froze my account with the money in it stating that I will need a notarized document from that person stating that they were the issuer it's been more than 90 days and they're still pending investigation
When a person issues a check, there is a "warranty" with it, that follows. First the issuer warrants that he or she has the money in the payor bank. Then the payor bank warrants that upon proper presentment of the check, they will pay the funds. Next the receiving bank, upon receiving the bank and depositing the funds to the depositor's account warrants to the depositor that it has the funds and will receive them from the payor bank. Here, it sounds like your bank (depositor bank) either has not yet received the funds from the payor bank, or has received them with a suspicious activity alert, which basically means that they are issuing them without the warranty. The best advice we can give, is go get the issuer to walk into the bank and tell them he wrote the check and he will be writing more. That's a hassle, but once it's done, it's done. If you wanted to sue, you could, but for $1200 it might be better practice to just handle this by proving that the guy actually wrote you the check.
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Yes. Your bank has right to place hold on check based on variety of reasons.
The 90 day hold is excessive. Matter should have been resolved by now.
Go to your bank and speak to manager. Demand explanation and plan to resolve the issue.
If not satisfied with response you receive, consult banking counsel for resolution.
I agree with Attorney Shields. A 90 day hold is ridiculous and excessive. You need to go to the bank and demand an explanation and demand a plan for resolving the situation. If not, demand your check back and open a new account with a different bank that is more reasonable to deal with. Unfortunately, for $1,200.00 litigation is not a viable option for you.
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