Chase Chased: We Only Give You Your Money Because Uncle Sam Says We Have To

Reader Michael D. saw the post yesterday about Chase’s deposit weirdness, where they hold onto your money from big deposits for days and then eke it out bit by bit unless you fill out special forms. Michael decided to ask Chase why they were so retarded, and if their parents really told them paint chips were wall candy.

See Michael’s great letter and Chase’s quick response (three hours!) after the jump. They blame the government for making them actually give you your deposited money. Fuckin’ government.

Dear Chase,

In your online pages concerning check cashing and clearance policy, Chase maintains that for non-local checks first $100 is available on the first day, $400 after that, then $7400 on the 4th business day etc.

I am curious about this procedure as it would seem that by the 2nd business day, given that all transactions are electronic, all funds should be confirmed by this time. Is this correct? Or perhaps there are couriers hand delivering each note accompanied by a secret handshake. What say you?

Furthermore, why the staggering amounts? If you can clear $100, then $400 etc. from the opposing party’s checking account, then the money can be shown to exist, so why not make it all available?

This is important to me because if I want to deposit $50,000 from an out-of-state vendor of mine for a down payment on a new house, I may lose out on the purchase of the house if not made within a certain time frame.

Can you clarify your policy and perhaps explain the company rationale behind it?

Much appreciated. I look forward to hearing from you shortly.


Chase responds:

Dear Michael:

Thank you for contacting Chase.

The Expedited Funds Availability Act (Reg CC) is governed by the Federal Government and it is not a bank policy.

The Expedited Funds Availability Act ensures prompt availability of deposited funds and governs the length of time a bank may “hold” funds from checks deposited into transaction accounts (usually checking accounts). Banks place holds on checks to protect you and the bank from any unnecessary losses due to checks being returned unpaid.

The amounts that are distributed each day while the check is going through the Reg CC was decided by the financial institution.

As an option, please confirm if the $50,000.00 that you will be receiving can be electronically transferee to your account. When funds are electronically transferee, there is no waiting period for the funds to be available. Your
funds will be available for you to use immediately.

If you have any questions or require further assistance, please e-mail us or contact our Internet Service Center at 1-877-242-7372.

Thank you, Tiffany McKelvey
Internet Service Center


Edit Your Comment

  1. airship says:

    This is more typical bank BS. The purpose of this act was to KEEP banks from holding checks for MORE than the time specified in the Act. Before the Act, banks could and would hold checks for ungodly amounts of time before crediting a deposit. This Act specifies the MAXIMUM time a bank can hold your money before giving it to you, and Chase is definitely pushing to the limit of the law. If they wanted to, they could credit your deposits immediately.

  2. mrscolex says:

    Somebody should start holding these banks accountable for these types of things. No pun intended. Seriously though, Wachovia gave me the same schtick when it came to the new “Check 21” Electronic Checking regulation that came through. How come Banks can immediately withdraw the money written on a check immediately electronically from my account but when it comes to putting the money INTO my account it doesn’t work the same way. The teller at Wachovia meekly told me that it would… uh huh… somebody didn’t read the memo.

  3. The Unicorn says:

    Also, what’s with “electronically transferee”? Once, I can understand, but twice? Is this person a native French speaker who occasionally slips into the mother tongue?

  4. RaginCajun says:

    Every day, I say I’m going to leave Chase. Every day. Then I start to think about moving my direct deposit, re-entering all those bill-pay account numbers, making someone at Chase really, really sad to lose all of those millions hundreds of dollars of mine. Every day, my laziness wins. Maybe next year.

  5. OkiMike says:

    It’s a good thing that the Expedited Funds Availability Act exists or we might never see our money!

    I was expecting a disclaimer at the bottom that said something like, “Please note the typo in the sentence ‘protect you and the bank’. This should read ‘protect the bank’. Thank you.”

  6. Poolady says:

    I’m a wamu orphan at Chase and like Ragincagin, I hesitate to take on the hassle of moving everything and I do like the Chase online services. But this is ridiculous. For 20 years we got same day availability on deposits. Moving to the one day hold was a hassle but we adjusted. I made a normal deposit Friday morning and it won’t be released till Tuesday. Nobody at the branch knows why or is empowered to fix it. I signed up for the ADP services through Chase and they got my money last Tuesday and some employees don’t get the funds till 12/1! Obviously, they’ve figured out how to hold onto our money longer and longer. We need to rise up and force our government to stop letting this crowd of opportunistic grifters rip us off. Can anyone recommend a full service business bank that won’t dick us around?