Banks can place "holds" on checks for a variety of reasons. A bank can also refuse to pay a check if the drawer has issued a stop on the check. Also, when there is an insufficient amount of money in the drawer’s account, there is absolutely no way that the bank will honor the check. Can a bank refuse to deposit a check into your account because the check is from a former customer that owes the bank $30.00. When someone to whom you have written a check deposits it, their bank will look at the check and encode it with the amount. Most banks reserve the right to refuse any check for deposit. First published on 10/03/2011. print email share. Is this even legal? My brother recived an unemployment check and has no bank account. Holds may also be placed when a large dollar amount (more than $5,000) is deposited or when funds are deposited into a new customer's account. They'll allow us to deposit the check into my account and then withdraw the funds but we both have to be present and show I.D Per The Fed: This statute means that all United States money as identified above is a valid and legal offer of payment for debts when tendered to a … How can a bank refuse to deposit legal tender in the United States? As one of my bank accounts is local (he banks strictly online), he occasionally will go to my bank to cash a check. My husband and I keep sep. checking accounts. By accepting a two-party check as a deposit the banks may feel they have liability if there were a dispute between the parties. Can a bank refuse to cash their own check? I tried to deposit into my account and was refused because he owed the bank thirty dollars. In effect, your bank stands behind the check and guarantees that the recipient, or payee, can deposit or cash it and receive the promised funds. Recipients may prefer cashier's checks because: Answer: Normally yes, but that would be governed by the language in your depositor's agreement. First published on BankersOnline.com 10/3/11. He can either wait, or not be dumb and deposit it in some kind of interest bearing account. They didn't refuse to cash it, they told him they need time to gather $50,000 and verify the check is legitimate which is a completely reasonable action. Filed under: This process can take days, or even a week or more. (At the time of deposit, some banks might put an additional hold on a check that is stale-dated and technically they have a right to refuse it, but most banks will just process old checks the same way as they would new ones.) Can a bank refuse to accept a check deposited into a customer's account? Otherwise, the issuing bank will refuse to pay the bank at which the check was deposited. 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