Can a credit union suspend a checking account if you have 3 bounced checks withinas manymonths but you paid each off within the required 30 days?

UPDATED: Dec 12, 2011

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Can a credit union suspend a checking account if you have 3 bounced checks withinas manymonths but you paid each off within the required 30 days?

My checking account was placed on suspension for 6 months to a year because of 3 bounced checks that were written to me by someone else. However, I made good on all items within the amount of time allotted to bring account into a positive status? I tried to talk to a supervisor in accounts receivable. I tried telling them that I felt that it this was discrimination and that I’ve been a member for approximately 10 years, paid off a loan and introduced several people to become members.

Asked on December 12, 2011 under General Practice, Virginia


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Banks (and credit unions) are allowed to suspend the accounts of people whom they believe pose risks of nonpayment or default, who repeatedly bounce checks, or show wanring signs of other problems (such as several times trying to deposit checks which are dishonored). This would not be discrimination, since it is not behavior aimed at a protected category, such as a racial group, but is linked directly to your own, banking-related bahavior.

Rather than try to fight this credit union on the topic, when the law is on their side, why not open an account elsewhere?

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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