Consumer complaint received 2026-03-26 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: FIRST HORIZON BANK
State: NC

Complaint narrative:
I am filing this complaint regarding an improper and unjustified fraud hold placed on a legitimate and already-cleared treasurers check by First Horizon Bank . On Saturday, I visited my local branch to cash a treasurers check. I was told the branch did not have sufficient cash on hand and was instructed to deposit the check instead. I was informed the funds would be available by Tuesday. I was advised to hold the check and check back Monday. On Monday, I contacted the bank and was told the check needed to be deposited. I specifically asked whether depositing via mobile app versus in person would affect availability and was explicitly told it would not. Based on that representation, I deposited the check via mobile. On Tuesday, the funds were not available as promised. I contacted customer service and was told the hold would be released on XX/XX/XXXX. Customer service contacted the branch, and between both representatives, I was explicitly guaranteed that the funds would be available the following day. I was told the back office confirmed funds would be available at XXXX and that I could withdraw them at XXXX XXXX. They even offered to contact the seller to assure them payment would be available. On Wednesday, my account showed the deposit as credited but not available. I contacted the branch and was then told the funds were on hold until XX/XX/XXXX. Customer service claimed the hold was placed by the mobile division. The branch manager later stated the funds were flagged for fraud by the fraud department. The justification provided was that the check allegedly had a spatter marking on the back. This is incorrect. The only institution that physically handled the check prior to deposit was First Horizon. I have the original check, which shows no such marking. The issuing bank, XXXX XXXX XXXX XXXX, has confirmed that : The check is legitimate The check has been processed and paid Funds were transmitted to First Horizon on Tuesday I have documentation from the issuing bank confirming the funds have cleared, as well as images of the check showing no irregularities. Despite this, First Horizon continues to hold funds that they have already received, without providing a valid explanation or documentation supporting the fraud determination. This conduct raises serious concerns under Regulation CC ( 12 C.F.R. Part 229 ). Treasurers/cashiers checks are generally entitled to expedited availability. While exceptions are allowed for suspected fraud, First Horizon has not provided a valid or documented basis for an extended hold, particularly given that the issuing bank has confirmed the check has already cleared and funds have been received. Additionally, First Horizon representatives made explicit assurances that the funds would be available on XX/XX/XXXX. I reasonably relied on those representations to proceed with a contractual transaction. The subsequent reversal and imposition of a fraud hold, without justification, constitutes misleading conduct and may violate the Unfair or Deceptive Acts or Practices ( UDAAP ) provisions of the Dodd-Frank Act. As a result of this conduct : I am now in breach of contract with a vehicle seller The seller relied on the banks guarantee and is financially impacted My business operations have been disrupted, and I am at risk of losing a client These damages were foreseeable and directly caused by reliance on the banks representations.

Company response to consumer: Closed with explanation