Hi guys
I'm trying to find the applicable law to an issue I am facing. My employer has all of its funds in a credit union including payroll. This is the 4th time this year the credit union has issued a return order on my payroll check after clearing the check, and releasing the funds. I even talked to my bank and they said the Check was Cleared, not clearing or processing but Cleared. 12 days later my bank is receiving a revocation order for my paycheck and required to return the funds to the credit union.
I would say that it might be my employer as many of you might be thinking but they have actually shown me where it says that it has cleared on their end, called my bank was cleared on my end, and then 12 days later the funds are pulled from my account because my bank got the revocation order from the credit union.
So this lead to over draw fees and late charges which my employer has covered, so my employer asked them why they were issuing revocation of payroll checks (i'm not the only one) and they replied that they don't trust the new owner and until they do they will continue to hold all funds and issue revocation of all checks. The old owner has even talked to them and they gave him the same answer even tho everything has been changed to the new owner. The business changed hands 14 months ago, and this has been a problem for the last 7 months.
So now that you are caught up, there is no way that is legal. Stop the check is one thing, but to actually revoke a cleared check at 12 days after it is cleared on both sides.
I'm having trouble finding any applicable laws or bylaws or even NCUA regulations that deal with this issue.
You wouldn't happen to live in Oklahoma would you? That is funny as I have faced almost the same issue probably not the same company though.
The difference is that mine were just not getting processed for DAYS!!! So I quit my bank account and started just cashing at the bank that issues the checks....problem solved they can't ask for money back that's already been spent :D
And that does seem highly illegal, call your local labor board, they have helped me more than you would think. As a matter of fact this can lead to a in depth investigation to all sorts of things they could be short changing you for, safety regulations vs. the amount you "should" be getting paid, or them just not plain being fair.
A past Job I had wasn't paying me for work that I had done, after calling the local labor board they had found out they owed me (plus 5 other employees) 150% MORE than I originally thought. Got paid, everyone was happy.
I'm not a lawyer...but it would seem the best course of action is for your employer to move his account to another bank or credit union, it's odd behavior for a credit union to be doing this so long after the transition, a few months I could maybe understand but still the credit union has the responsibility to clear any check presented to them as long as sufficient funds reside in the account, for them to revoke a cleared check tells me there is something else going on other than trust issues.
It's also odd because credit unions normally have a more lax attitude or are more likely to be more flexible than a traditional bank which is why I think there is a bigger issue than a lack of trust after 14 months, but to me it's going to be up to your employer to solve the problem, you are just a unfortunate participant, but cashing the check at the issuing bank and depositing the cash into your bank would take you out of the equation.