Protecting You from Fraud – Holds and Limit Changes

You have been to the branch or ATM and made a deposit, but when you go to use the funds it seems like you do not have access to all the money in your account. Since you are not sure what has happened you call your financial institution and are informed either a hold has been placed on the funds you deposited or your debit card limit has been lowered. What does it mean and why has it happened?

At The Credit Union we value the relationship we have with our members and take pride in being our members’ financial advocate. Part of our responsibility is to review our policies and procedures on an on-going basis to make sure that we are doing what is best for our members. One of our biggest concerns in protecting your money is fraud. Over the past few years we have seen a consistent increase on both the amount and types of fraud affecting our members. To decrease the potential for fraud we have changed policies related to the availability of funds in members’ accounts. It is never about not trusting our members, it is always about protecting individual members’ accounts and The Credit Union membership overall.

Holds
Holds are placed on deposits made through ATMs for two main reasons. The first is to verify that an actual deposit has been made so that fraudsters are not able to deposit empty envelopes. If cash is deposited the hold is removed as soon as the amount is verified, typically the next business day. The second reason is to verify cheque deposits. The hold allows sufficient time for the cheque to clear through the banking system ensuring the funds are able to remain in the depositors’ account. Once the hold has expired funds are made available.

Of course, holds are never placed on payroll deposits, inter-institutional transfers or funds received utilizing a bill payment service. Additionally, members’ who have an established deposit relationship with The Credit Union can have holds partially released or completely removed following verification.

ATM Limits
Each day The Credit Union receives reports of member’s who have used ATMs and point-of-sale terminals that have been or are suspected of being used for fraudulent activity. Immediately in those cases we lower the limit on the affected member’s debit card and contact each member to come in to receive a replacement card. This is a reactive approach to preventing loss. Proactively, The Credit Union reviews members’ ATM and debit card history and adjusts limits based on the members’ usage and requirements.

We recognize from time to time members need access to more than their daily limit. When this situation occurs members only need to call C.U. Member Assistance to have their daily limit increased for a specified period of time.