4 ms·

>He made a dozen trips to U.S. Bank because they wouldn't give him more than $30,000 at a time. This is illegal. Checking accounts are legally known as "Deman

by mwally 13y ago

>He made a dozen trips to U.S. Bank because they wouldn't give him more than $30,000 at a time. This is illegal. Checking accounts are legally known as "Demand Deposit Accounts," and you are allowed to show up (at any time) and demand as much money as you have available, in cash, and the banks are absolutely obligated to deliver. They cannot close their doors without first paying you, even if you show up moments before closing trying to withdraw millions of dollars. (They are, however, allowed to stay open late, if needed, should an armored car delivery be required.)

andr3w321 13y ago
I dunno about the legality of this or not, but banks absolutely will refuse to give you over a certain amount in cash at any given time unless you notify them ahead of time of your withdrawal. They don't actually keep that much cash on hand. If you go to your local bank and try to take out $20k chances are they'll tell you here's $10k, come back in two days for the rest and call us ahead of time next time.
maxerickson 13y ago
http://www.consumerfinance.gov/askcfpb/953/what-difference-between-checking-account-demand-deposit-account-and-now-negotiable-order-withdrawal-account.html http://www.consumerfinance.gov/askcfpb/953/what-difference-b...
bunderbunder 13y ago
From the Federal Reserve's Consumer Compliance Handbook, section II, Regulation CC ("Availability of Funds and Collection of Checks"), pp 11-12: Some small financial institutions do not keep cash on their premises and do not offer cash withdrawal services to their customers. Others limit the amount of cash on their premises, for reasons related to bonding, and as a result reserve the right to limit the amount of cash a customer may with draw on a given day or to require advance notice for large cash withdrawals. Nothing in the regulation is intended to prohibit these practices if they are applied uniformly and are based on security, operating, or bonding requirements and if the policy is not dependent on the length of time the funds have been in the customer’s account, as long as the permissible hold has expired. However, the regulation does not authorize such policies if they are otherwise prohibited by statutory, regulatory, or common law. (source: http://www.federalreserve.gov/boarddocs/supmanual/cch/efaa.pdf http://www.federalreserve.gov/boarddocs/supmanual/cch/efaa.p...) In other words: Unless they're violating some technicality in the law (probably a state or local law), it's probably entirely legal. Probably safest to talk to an attorney before coming to any conclusions on the matter.

by mwally 13y ago

andr3w321 13y ago

I dunno about the legality of this or not, but banks absolutely will refuse to give you over a certain amount in cash at any given time unless you notify them ahead of time of your withdrawal. They don't actually keep that much cash on hand. If you go to your local bank and try to take out $20k chances are they'll tell you here's $10k, come back in two days for the rest and call us ahead of time next time.

maxerickson 13y ago

http://www.consumerfinance.gov/askcfpb/953/what-difference-between-checking-account-demand-deposit-account-and-now-negotiable-order-withdrawal-account.html http://www.consumerfinance.gov/askcfpb/953/what-difference-b...

bunderbunder 13y ago

From the Federal Reserve's Consumer Compliance Handbook, section II, Regulation CC ("Availability of Funds and Collection of Checks"), pp 11-12: Some small financial institutions do not keep cash on their premises and do not offer cash withdrawal services to their customers. Others limit the amount of cash on their premises, for reasons related to bonding, and as a result reserve the right to limit the amount of cash a customer may with draw on a given day or to require advance notice for large cash withdrawals. Nothing in the regulation is intended to prohibit these practices if they are applied uniformly and are based on security, operating, or bonding requirements and if the policy is not dependent on the length of time the funds have been in the customer’s account, as long as the permissible hold has expired. However, the regulation does not authorize such policies if they are otherwise prohibited by statutory, regulatory, or common law. (source: http://www.federalreserve.gov/boarddocs/supmanual/cch/efaa.pdf http://www.federalreserve.gov/boarddocs/supmanual/cch/efaa.p...) In other words: Unless they're violating some technicality in the law (probably a state or local law), it's probably entirely legal. Probably safest to talk to an attorney before coming to any conclusions on the matter.