Hold on Check? So confused....?

Question

OK, someone please explain this to me since my bank's customer service is useless. I wrote a $3500 check for a motorcycle last Thursday. I'm getting the motorcycle to drive back and forth to college. Classes start on Monday and they stop issuing motorcycle permits two weeks after classes start. My bank says it cleared on Friday, but the guy I'm buying it from said that his bank says it won't clear until the 28th. I'm apt to believe this guy because he offered to meet me at my bank and take the cost of what it would be to cancel the check off the price of the bike and cash it there. What the h**l is going on? I mean I want this bike before I can't get a parking permit for it anymore and I can't even cancel the check anymore even if his bank held the check to mid-september. The guy I'm buying it from wants to get it out of his garage and into mine, so he's willing to do all he can. Someone just explain to me what's going on. It's not like I financed the dang thing, I had about 20,000 more than I needed in the account I wrote the check out of. What's the problem here? I want this bike before I can't ride it to school!

Answer 1

its not ur bank or anything u did thats the problem...most bankers know that when u deposit a check that is totalled to more than what u have in ur account the bank puts a hold on the check until the funds are recevied from the other bank. some banks will work with u and try to expedite the process so that the funds will be available to u sooner, but most banks wont. it just depends on who u speak to. i think that because the check is a large amount and considering the fact that there is so much fraud and all that going on with people writing bad checks and cashing them to make money thats why there is a hold on it. it also depends on how long the guy has been a customer with his bank. if he has been with his bank for a while more than likely they would have made the funds available to him right away..they only thing u can do now if the situation is that dire, is to withdraw the funds from ur account and just give it to the guy and u both can just eat the bounced check fee...

Answer 2

Your bank paying the check and the hold placed by his bank are TOTALLY unrelated issues.  The funds are actually in his account now.  Banks are allowed by law to 'hold' deposits from out of state banks for a specific amount of time.  This law predate computers and has NOTHING to do with actual collection times.  You MAY be able to convince his bank to release the funds if you can talk your bank into faxing them something stating you actually had the money and the check will not be returned later.

Answer 3

Banks have there odd ways but make sure you get the check back, then do the cash thing.  Why do you need the bike to get the permit? go get the permit, tell them its in the shop if they want to see it.

Answer 4

You gave someone a check and did not take possession of the motorcycle?

You are confusing issues here.  You are confusing bank holds with poession of personal property.  If you give someone a check and you have the money in the bank to cover it, TAKE POSESSION!!!  Do not do business with people who do not understand this.

Banks put hold on large check all the time.  Particularly with people who do not have established accounts.  Thank all the b*****s in jail for check kiting

Perhaps his bank has a hold on the check and not yours, to wit, your bank would not know anything about a hold.  The Code of Federal Regulation allows banks to put hold on large sums of money to the issuing bank can keep the interest.  Funny, but the recieving bank puts holds on it too.  It all has to do with electronic transfer of funds.  He has the money, you need to take posession and he needs to deal with his bank.

Answer 5

Sounds to me like his bank is putting a freeze on that amount of money in his account till the check clears(in case it bounces)...or he does not have that amount of money in his account for them to freeze...at any rate they are using the float( time they can legally hold the money before releasing it) to make some extra money .