Is there a law that requires credit card companys to hold payments over $500 for 10 days?

Sam B asked:


My credit card company told me that if I make any payments over $500, that they are required by law to hold it for 10 days before crediting my account. Also, they told me that the same holding period is required if I make more than one payment in any billing cycle. I have Googled my fingers off, and can not find any references to any such law. Does it exist? Or is my CC company just feeding me a line.
My credit card company told me that if I make any payments over $500, that they are required by law to hold it for 10 days before crediting my account. Also, they told me that the same holding period is required if I make more than one payment in any billing cycle. I have Googled my fingers off, and can not find any references to any such law. Does it exist? Or is my CC company just feeding me a line.

ADDED NOTE: All my payments are electronic–no need for them to worry about bad checks.

Cindy

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8 Responses to “Is there a law that requires credit card companys to hold payments over $500 for 10 days?”

1. trevor2 Says:
   July 22nd, 2009 at 12:56 am

   Philip

   ive paid 600 on my card and it went through 5 days after i mailed it

2. betterthanzero Says:
   July 24th, 2009 at 8:36 pm

   Ellen

   I don’t think they’re required by law; I think they’re required by corporate policy to prevent people from bouncing checks.

3. SPIFIMAN1 Says:
   July 24th, 2009 at 9:35 pm

   Marcus

   They are feeding you something that’s for sure.

   I have made several hundred payments of well over $500.00 and never has there been such a delay.

4. Crazy cat lady >^ ^< Says:
   July 27th, 2009 at 1:34 pm

   Dawn

   I have never ever herd of such a thing..I just paid my Washington Mutual credit card $800.00 and it cas processed right away

   Then you know what I would send them several checks totaling $500.00 like one check for 100.00 another check for 50 etc all in the same enevlope just to tick them off.

5. Amy V Says:
   July 29th, 2009 at 12:13 am

   Vernon

   Its a load, so is the bit about making multiple payments in one billing cycle. They may hold it for 10 days to verify the check is good, but that would be the cc company’s policy only. If you can, make your payment arrangements electronically. If they keep it up, find a new cc company with terms you like and transfer the balance.

6. Queenapache Says:
   August 1st, 2009 at 10:41 am

   Loretta

   I’ve never heard of any such law. I would do a background check on the credit card company and see if there are any reports on them! Also, refer to your documentation that came with your credit card, that info would be stated in there. Are you paying on time? If so, have you checked your credit report, is it being reported as paid on time, or late? I would look into that as it would affect your credit score.

   Sounds bogus, not only did they say they have to hold a payment of $500+ for 10 days, they even anticipated what could have been your next move (making small multiple payments within the same billing period), by stating they will aslo hold it for 10 days if you make more than one payment in a billing cycle. How clever of them! who are they?…you dont have to answer that if you dont want…just curious though.

7. echo Says:
   August 3rd, 2009 at 4:30 pm

   Elaine

   Give your fingers a break, there is no such law.

   Many credit card companies may place holds on regular payments, payments over a certain amount, more than one payment in a pay period.
   They may place holds, for any of those reasons, for one person but allow another persons payments to post immediately.

8. Robin K Says:
   August 4th, 2009 at 8:04 pm

   Anthony

   They may be referring to their responsibility to detect money laundering. Large payments and multiple payments are a couple of the things that can trigger a second look to make sure check kiting and money laundering isn’t happening.