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Contributor
Today I deposited a Cashier's Check for a large amount and USAA placed a hold on almost all of it for 8 days. I can understand placing holds on personal or business checks, but a Cashier's Check? Those funds are guaranteed. I asked the representative I spoke to, to ask for a manager and she placed me on the longest hold that eventually got disconnected. The worst part is because the deposit was made, I can not get the money back until the hold is lifted in order to close this account and take my business elsewhere. I made this deposit to pay off creditors and be able to trace and have proof of payment. I do not pay people in cash as there is no proof. This is horrible because each day that passes, there is interest accruing! Please reassess who your customers are and how they are affected by your policies.

3 REPLIES

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Cashier Checks are only guaranteed if you cash them at the bank that issued them, that is assuming it isn't  fraudulent..  They have become a favorite for scammers to forge because people assume they are as good as cash.  The hold protects you and the bank by ensuring the funds are received before you spend the money.

 

Avoiding Cachier's Check Fraud. (from the OCC Website)

 

"However, cashier’s checks lately have become an attractive vehicle for fraud when used for payments to consumers. Although, the amount of a cashier’s check quickly becomes "available" for withdrawal by the consumer after the consumer deposits the check, these funds do not belong to the consumer if the check proves to be fraudulent. It may take weeks to discover that a cashier’s check is fraudulent. In the meantime, the consumer may have irrevocably wired the funds to a scam artist or otherwise used the funds—only to find out later, when the fraud is detected—that the consumer owes the bank the full amount of the cashier’s check that had been deposited."

 

 

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Valerie C,

 

I know this situation is very frustrating, and I empathize with your frustration. I would like to get you in contact with a member servces representative to see if there is anything else we may be able to do for you. Please click here with the details you provided above. Someone will be able to reach you directly and get this sorted out. Thank you.

 

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DSTexas is correct. A cashier's check is just another piece of paper.