I have an automobile loan and savings account with First Hawaiian Bank. I visited the bank and deposited a cashier’s check from Navy Federal Credit Union that was larger than the loan balance. The clerk told me I would receive the title and a refund check at the end of ten business days. After ten business days passed, I called First Hawaiian Bank and learned that they had doubled the check holding time to 20 business days because “we get a lot of bad checks from Navy Federal Credit Union.” The bank employee told me that because my account is a savings account and not a checking account, Regulation CC is irrelevant and there is no legal maximum limit to how long they can hold the check, and they have no obligation to inform me if they decide to give themselves an extension. Although they acknowledge the verbal promise their clerk made to me, they have declined to honor it. Had the clerk given me the correct information, I would have taken the cashier’s check down the street to Navy Federal Credit Union to get cash immediately.

Can Navy Federal Credit Union do anything to speed up this process? Is First Hawaiian Bank responsible for honoring their promise to me? How can I trust that they will not extend the time again, to 30 or 200 days? Can First Hawaiian Bank be held liable for the damage I suffer, including loss of access to my money, loss of ability to transfer the car title, and potential cancellation of a sale that was based on title availability after ten business days?

I have an automobile loan and savings account with First Hawaiian Bank. I visited the bank and deposited a cashier’s check from Navy Federal Credit Union that was larger than the loan balance. The clerk told me I would receive the title and a refund check at the end of ten business days. After ten business days passed, I called First Hawaiian Bank and learned that they had doubled the check holding time to 20 business days because “we get a lot of bad checks from Navy Federal Credit Union.” The bank employee told me that because my account is a savings account and not a checking account, Regulation CC is irrelevant and there is no legal maximum limit to how long they can hold the check, and they have no obligation to inform me if they decide to give themselves an extension. Although they acknowledge the verbal promise their clerk made to me, they have declined to honor it. Had the clerk given me the correct information, I would have taken the cashier’s check down the street to Navy Federal Credit Union to get cash immediately.

Can Navy Federal Credit Union do anything to speed up this process? Is First Hawaiian Bank responsible for honoring their promise to me? How can I trust that they will not extend the time again, to 30 or 200 days? Can First Hawaiian Bank be held liable for the damage I suffer, including loss of access to my money, loss of ability to transfer the car title, and potential cancellation of a sale that was based on title availability after ten business days?

If time was an issue, you should have cashed the check.

What you just did, give a larger check, wanting the cash back is almost the details of most check scams, Had you gotten two checks one to pay off and another for your cash.

If they are holding for varification, ask them what the other bank can do to clear the check.