Lets banks hold deposited checks and certain wire transfers longer when they reasonably suspect fraud, and requires the Federal Reserve Board and the Consumer Financial Protection Bureau to write the rules that set those hold limits.

• Requires the Federal Reserve Board and the CFPB to write rules allowing an initial hold of up to 10 days and an extended hold of up to 45 days on checks and wire transfers suspected of fraud.
• Requires banks to explain their fraud suspicions in a written notice to the depositor and bars overdraft fees caused by a delayed wire when that notice was not provided.
• Allows the Board and CFPB to apply same-day-style availability rules to certain classes of checks if they find material fraud losses, for up to one year.
• Directs the Comptroller General to study state funds availability laws and fraud safeguards, and to report to Congress within nine months after the new rules take effect.

• Financial Services Committee (House)

Finance and Financial Sector