Reasonable Cause to Doubt Collectability. The Credit Union may extend the hold placed on checks drawn on a Federal Reserve Bank
Reasonable Cause to Doubt Collectability. The Credit Union has reasonable cause to believe the check is uncollectible, such as a stale or postdated check, evidence of check kiting, or a notice dishonor from the payer financial institution. The Credit Union will maintain the notice provided to the member, along with a statement of facts surrounding its reason to doubt the collectability of the item, for 2 years.
Reasonable Cause to Doubt Collectability. We may hold for a reasonable amount of time the Checks deposited into your Account where we have reasonable cause to believe that the Check is uncollectible from the payor bank. If we extend the time when funds will be available for withdrawal for this reason, but do not provide you with written notice at the time of deposit, we will not assess any fees for subsequent Overdrafts or return of Checks or other debits to the Account if: (i) the Overdraft or return of the Check would not have occurred except for the fact that the deposited funds were delayed because we doubted the collectability of the Checks and (ii) the deposited Check or Checks were paid by the payor bank. We may assess an “Overdraft” fee or “Returned Deposit Item” fee , as set forth in the FEE SCHEDULE, if it includes a notice concerning Overdraft and returned Check fees with the notice of exception required in 12 CFR § 229.13(g) and, when required, refund any such fees upon your request. The notice will state that you may be entitled to a refund of Overdraft or returned Check fees that are assessed if the Check subject to the exception is paid and how you can obtain a refund.
