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Woodforest Bank Complaint - New Business Owner Ripped Off By Their Bank...

Review by lkscott on 2008-09-23
ROWLETT, TEXAS -- New business owners beware of Woodforest Bank they are ripping me off for a total of $10,169.15. I started a new business account with this bank and made a first deposit of $10,169.15 in which I was told would be held for 11 business days to insure that they cleared, this was fine with me. Well, now that the 11 business days is over they have now told me that they will be holding my deposit for an additional 60 days because it is a new account. I have made numerous calls to varies people at the bank to try and understand how they have valid reason to do this, but no one can give me a reasonable answer.

With this being a new business it has definitely made it difficult to continue to operate due to over ten thousand dollars being held and unaccounted for. No one at the bank or corporate office seem to be doing anything to help me in this matter they all just tell me the decision has been made and that the funds won't be released until November 12,2008. How crazy is this that a bank can do this!!!! This may cause me to go under as a new business and it seems like I have no options to fight the bank in this matter. I assumed that my bank should and would stand behind me in building up my business NOT hurt me and possibly get me shut down. They had no problems taking my deposit but they have major problems funding my account well after they know the checks are good.

Consumers BEWARE of Woodforest they are NOT a good company to go with for your business or personal accounts!!!!!
Comments:5 Replies - Latest reply on 2013-09-05
Posted by bill on 2008-09-23:
60 days is crazy. I have never heaqd of such a long hold on funds. You might want to call the banking department in your state to see if this is even legal. At least file a complaint with them because they originally told you 11 days.
Posted by tnchuck100 on 2008-09-23:
I think it is in violation of federal banking law to hold a deposit longer than 2 business days for an in local check and 15 business days for a non-local check.

Ref: Consumer Affairs Laws and Regulations - Section 1335 Para 229.12
http://files.ots.treas.gov//422237.pdf

If I were you I would close this account as soon as you can get your money and find a different bank.
Posted by tnchuck100 on 2008-09-23:
Even with the "new account" exception the most they can hold for is 30 calendar days.
Posted by Anonymous on 2008-09-23:
I believe you misunderstood. What they probably told you is that your holds are extended during the first 60 (I think Chuck is right with 30) days because the account is new. The amount of time they can hold funds is set by law and does not go beyond 10 business days unless the deposit bounces.
Posted by Myckkia on 2013-09-05:
wanting to know if you ever got your money back. Interested in follow up here.

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