ComplaintsforGreylock Federal Credit Union

• Initial Complaint

  06/05/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I deposited a check from my 401K ******************account last Saturday May 27, 2023. Put a 3 day hold on the first $300. Than when I got the first $300 they said another hold for another 7 Days for the rest. Federal laws say a 5 day hold. The check has been cleared & they still have a hold on the rest of my money. This bank I thought was good but it is not. My account now is in the negative and they charged me a over draft fee. This not acceptable. And the bank should be charged by the law for this. I will be switching banks very soon.

  Business response

  06/06/2023

  Greylock Federal Credit Union (Greylock) is committed to providing exceptional service and takes complaints from its members very seriously.  Any time we receive a complaint, we work diligently to ensure a prompt, thorough and appropriate response based upon the factual evidence.  There are a number of items to address in this specific complaint. 
  
  First, and as is the case with all deposits received by Greylock, at the time a deposit is made, a receipt is provided to the member which indicates, in writing, when funds will be available, including both the first $300, as well as any remaining funds above that amount. 

  Greylocks funds availability policy is in full compliance with Regulation CC (the Expedited Funds Availability Act), the federal banking regulation that governs funds availability for check deposits.  Per our policy, the first $300 of a check deposit is generally made available on the day of deposit.  The only caveat is when a deposit is made on a non-banking day, which includes weekends and federal holidays.  In this case, unfortunately, the deposit was made on Saturday (a non-banking day), May 27th.  Additionally, Monday, May 29th was a federal holiday, Memorial Day.  Therefore, the first $300 of the deposit was made available on the same day as the day of the deposit, which in this case, was actually Tuesday, May 30th.  While it may seem that there was a hold on this $300, there actually was not, at least with respect to how federal law governs holds and banking days under this regulation.   

  Regulation CC allows for a number of different hold reasons and timeframes that check funds may be held by a financial institution.  Contrary to the claim made within the complaint, federal law allows for holds longer than "5 days."  Unless there are extenuating circumstance, the longest Greylock will typically hold a check is 7 business days.  Detailed written procedures outline when a hold of this length should be utilized.  In this case, a 7 business day hold was deemed appropriate given the dollar amount of the check deposited.  These longer holds are not used to penalize the member, but rather to protect both the member and the credit union from potential losses.  Due to the timing of the deposit, and with the addition of a federal holiday, 7 business days equated to the funds becoming available on June 8, 2023.  Given the volume of checks received for deposit and processed by the credit union on a daily basis, we do not individually verify when a check clears from another financial institution.  We follow our written procedures and utilize various systems and technologies to ensure our processes are efficient, all of which are in compliance with federal banking regulations.  Our procedures, systems and technologies are validated by independent auditors as well as our federal regulator, the National Credit Union Administration (NCUA) on an ongoing basis.
  
  Lastly, the one overdraft fee that was assessed due to the check hold has already been refunded. 

  We believe this response adequately addresses each of the concerns noted within the complaint, and feel that no further action is required at this time.  Thank you for bringing this matter to our attention.  Should you require anything further from Greylock, please do not hesitate to contact us directly.

• Initial Complaint

  11/15/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I got a certified cashiers check from navy federal credit union and i paid my car off with half of it at greylock and the other half almost **** dollars i deposited in savings and now they will not let me have it and keep saying its a 7 business day hold, when i need it this week and federal law says 1-5 business days. I was lied to numerous times by greylock saying itd be 1-2 days then 5. I drove 400 miles last thursday to get this check and money. And now they keep lieing, hanging up and laughing when in person. I went in uniform the first time, military and maybe thats why, they hate military. I dont know but i just want my money and close account and be done with them after this.

  Business response

  12/01/2022

  Greylock Federal Credit Union (Greylock) is committed to providing exceptional service and takes complaints from its members very seriously.  Any time we receive a complaint, we work diligently to ensure a prompt, thorough and appropriate response based upon the factual evidence.  We have been in contact with our member directly and have provided a detailed verbal response to their complaint.  At no time did Greylock lie, act unprofessionally or violate any state or federal law.  It should also be noted that, as an organization,we have the utmost respect and appreciation for all military servicemembers and provide extensive training to all of our employees to ensure they act accordingly.  We acted in good faith with respect to the transaction(s) in question and in accordance with all account terms and conditions agreed upon in writing by both parties.  As we have a federal obligation to maintain privacy and confidentiality of our members information, further details will only be provided directly to our member. However, in between the time this complaint was filed (11/14/2022) and the date Greylock received this complaint from the BBB (12/1/2022), the members funds have long since been made available to him, in accordance with the 7 calendar day (not business day) hold, which information was provided at the time the transaction took place, in accordance with federal Regulation CC, the Expedited Funds Availability Act.  We thank you for bringing this matter to our attention.  Should you require anything further from Greylock, please do not hesitate to contact us directly.  

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩