I've been trying to confirm a rumor I've heard--that banks now have ten (10) business days in which to take back money they've paid to you--even if it's by certified check, money order, or cashier's check. Can't seem to find the statute(s) or regulation(s).
You'll want to review
"Regulation CC" .
Additional reference.
Or a less technical source.
Regulation CC limits the amount of time a bank can hold deposited funds. Occasionally...and particularly with forms of payment well outside the local area, checks can be returned for non sufficient funds or fraud reasons after the bank was required to fully credit the funds to the customer's account. In this event, the bank will actually go into that customer's account and withdraw the previously credited funds...even if it creates a negative balance.
Among other things, I am a Western Union agent, and these scams are an ongoing problem...though in four years I've not seen one at my location. I have seen a counterfeit traveler's check scam that nearly cost us $2000.
They prey on the stupid, elderly, or young among us...also among the "something for nothing" crowd.
I hope this helps answer your question, and shed some light on how these scams work. The perpretrator sends excess funds in counterfeit cashier's checks, personal checks, money orders, traveler's checks, etc. The recipient deposits said financial instruments in their bank account. The bank places a hold on the funds for as long as their bank regulations, or Regulation CC requires, then releases the funds. The customer then sends all or a portion of the excess funds via Western Union or other wire transfer service to the original sender of the counterfeit checks. Once the funds are received by the perpretator, there is no recourse for the victim. A day or two later the bank will start calling the victim to inform them they have a negative balance (if appropriate), or the victim will notice the deduction from their account on their own if there is no negative balance. If the victim has a negative balance, they will have to come up with a method to correct that a.s.a.p.
Some people....
