Consumer complaint received 2024-02-28
Product: Checking or savings account — Savings account
Issue: Managing an account — Deposits and withdrawals
Company: REGIONS FINANCIAL CORPORATION (NY)

Amount of Check deposited : {$2800.00} Check issue date : XX/XX/XXXX Check deposit date : XX/XX/XXXX Date Check was cleared : XX/XX/XXXX Maker of Check : XXXX XXXX XXXX XXXX I am writing to file a formal complaint against Regions Bank who are in breach of their own terms and conditions, regarding an issue I have been experiencing with a recent check deposit to my savings account. On the XXXX of XX/XX/XXXX, I deposited a check into my Regions Bank account using the proprietary app and although the check was cleared on the same day with the funds made available, Regions Bank then placed a hold on the funds, citing that " a deposit to your account has been identified as suspicious, irregular, fraudulent, unauthorized or unlawful ''. The check was issued by XXXX XXXX XXXX XXXX ( XXXX ), my former employer. Unfortunately that relationship has deteriorated and XXXX  are not willing to assist resolve this matter. Despite numerous attempts to seek clarification about the suspicion from the bank, there has been no legitimate response or evidence provided. This has harmed me since I have not had access to my funds for over three months, which I understand is in breach of numerous final standards. I have been experiencing financial hardship as a result of this over the last three months, unable to cover necessities such as food and other essential expenses. To live I have been relying on friends ' generosity as my family all live aboard and are not in a position to help me. I have attempted to resolve this matter in the following ways over the last three months. In XXXX I went to the check issuer 's bank who confirmed the fund had been sent and there was no issue with the transaction : -I have made over 20 calls to the Regions Bank manager XXXX XXXX who has repeatedly told me it was being investigated but with no valid response other than " I can not do anything about the hold ''. I asked when will the hold be lifted he stated " until the bank is satisfied to release the hold ''. 
- I contacted the check issuer who sent visual confirmation that the funds have left the account, this was shared with Regions Bank to the best of my knowledge the issuer of the check has not raised any claims of fraud, which I assume would be the first point of call for a fraud investigation. 
XXXX XXXX XXXX Regions Bank manager, contacted XXXX XXXX  XXXX The maker of the check 's bank ) to confirm the authenticity of the check. The manager at XXXX bank confirmed the check and submitted a written statement to XXXX XXXX to approve the check. 
- In XX/XX/XXXX, I contacted the bank manager again after several attempts, he told me the bank will hold on to the funds for 90 days from the day it was deposited. On XX/XX/XXXX, I called the bank manager again and this time he told on the phone that he does not know when the hold will be lifted. 


SECTION IV : REGIONS BANK FUNDS AVAILABILITY POLICY 1. Your Ability To Withdraw Funds. Our policy is to make funds from your deposits available to you on the first business day after the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once they are available, you can withdraw the funds in cash and we will use the funds to pay checks that you have written. For determining the availability of your deposits, every day is a business day, except XXXX, XXXX, and federal holidays. If you make a deposit before XXXXXXXX XXXX ( or at other times as may be displayed ) on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after XXXXXXXX XXXX. on a business day ( or at other times as may be displayed ) or on a day we are not open, we will consider that the deposit was made on the next business day we are open. 

2. Longer Delays May Apply. In some cases, we will not make all of the funds that you deposit by check available to you on the first business day after the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the second ( XXXX ) business day after the day of your deposit. However, the first {$100.00} of your deposits will be available on the first business day. If we are not going to make all of the funds from your deposit available on the first business day, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail you the notice by the day after we receive your deposit. If you will need the funds from a deposit right away, you should ask us when the funds will be available. 
In addition, funds you deposit by check may be delayed for a longer period under the following circumstances : We believe a check you deposit will not be paid. 
You deposit checks totaling more than {$5000.00} on any one day. 
You redeposit a check that has been returned unpaid. 
You have overdrawn your account repeatedly in the last six months. 
There is an emergency, such as failure of communications or computer equipment. 
We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the XXXX  ( XXXX ) business day after the day of your deposit. 



My experience with the policies above : According to the above policies, Regions Bank has violated its own terms with my experience below : Regions Bank cleared the check from the makers account but put hold on the fund for more than 3 months. 

Regulation CC provides that banks must post their availability policies on their premises at a location where customers who are making deposits are likely to see it. I has been 90 days since I deposited the check, and I asked the manager of the bank when funds will be available, and he said he stated, until the bank is satisfied. Long hold fund availability of 90 days is not displayed on Regions Bank website and the bank has not communicated how long the fund will be held. which violates the Federal Reserve Regulation CC of Reasonable Hold Period. 

The Regulation CC requires Regions Bank to notify me that the funds are being held and when they will be made available to me but I have not received any reasonable hold period for the funds to be released. 

On Regions Bank website, they listed scenarios where funds may be subject to a longer hold time on deposits, according to the Regulation CC guidelines. My long hold period does not apply to any of these categories : -New account deposits. Next-day deposits are only allowed for cash, electronic payments and the first {$5000.00} of checks; remaining funds are made available on the XXXX  business day. 
-Large deposits. Deposits of more than {$5000.00} ( excluding cash or electronic payments ) have a second business day availability for the first {$5000.00} ; XXXX  business day or later for the remainder. 
-Redeposited checks. A check deposited once and returned unpaid can be held until the seventh business day. 
-Excessive overdrafts. Deposits made to accounts that have been overdrawn six or more times in the previous six months can be held until the seventh business day or later. 
-Potentially uncollectable checks. Checks that may not be payable ( because they are fraudulent, are post-dated or exceed your account balance ) can be held until the seventh business day or later. 
-Emergency deposits. Deposits made under emergency conditions, such as a natural disaster or power outage, can be held until conditions allow the money to be credited to your account. 

II. I filed a complaint with the Illinois Department of Financial and Professional Regulation ( IDFPR ). IDFPR sent me a letter ( scanned copy attached ) that required Regions Bank to respond to the complaint by XX/XX/XXXX. However, disregarded the notice and refused to reach out to me with a letter with specific reasons why the funds are being held. 

III. Regions Bank Policy states we do not accept verification from the paying party or maker bank that a check has cleared the originating bank account in order to release a deposit hold due to various risk and legal factors, including potential fraud. This policy was violated by the Regions Bank. The Branch manager reached out to the makers bank manager to confirm the funds. I was also asked to provide supporting evidence to prove the check was cleared. Despite violating their own policy, I feel taking advantage of this by wasting my time and energy for months following up with the maker of the check, makers bank manager, to provide evidence of the check being cleared. Both parties confirm that the check has been cleared. Both in writing and over the phone. After proving all this evidence, Regions Bank is still holding on to the fund with doubts. 

IV. According to the Federal Reserve Regulation CC Banks are required by law to make a certain portion of deposits available to the depositor either immediately or within a few days of the deposit. Regions bank has placed a hold on all the funds and no portion of the funds has been made available for the past three months even though the check has been cleared. This violates Regions Banks own policy of section iv : funds availability policy.