What does HOLD REL MEM CR mean by Chase Bank?

Have you ever seen the letters HOLD REL MEM CR show up on your Chase bank statement and wondered what it meant? You’re not alone – this banking code can look confusing at first glance. But it’s referring to a widespread practice that banks use when processing transactions.

Whenever you deposit an extensive check or make a big payment into your account, your bank may place what’s called a “hold” on those funds for a short period. This is to make sure the money is available before they let you access it fully. During the hold time, they’ll give you a “memo credit” as well, which acts like a temporary loan so you can still use the money.

Once everything clears between your bank and the other banks involved, the hold gets “released.” Those three letters – HOLD REL – mean precisely that. Then, the “MEM CR” part removes that temporary loan credit, leaving you with just the actual deposited funds in your account. It’s the bank’s way of saying the funds are now entirely yours to use without any restrictions.

What does HOLD REL MEM CR mean?

HOLD REL MEM CR is a code that may show up on your Chase bank statement from time to time. It may not look evident since it’s made up of letters and numbers. But it tells you about a very normal part of how banks process transactions securely. 

The “HOLD REL” part means that a previous hold or restriction on your funds has now been released. Sometimes, when you deposit an extensive check or make a big payment into your account, the bank will hold the funds for a little while before letting you use them. This is to make sure the money clears from the other bank.

During the hold period, the bank will do something called providing a “memo credit.” This acts like a temporary loan that lets you still have access to and use the money, even though it’s technically being held. 

Once everything clears between all the banks involved, the hold then gets “released.” The “MEM CR” part means the temporary loan is also being removed, leaving you with just the actual deposited funds without any limitations. HOLD REL MEM CR is the bank’s way of telling you the funds are now entirely yours to access without any holds or restrictions on your account.

Possible Reasons and Consequences

Let’s discuss them:

Reasons for the Hold

There are a few main reasons why a bank like Chase might place a temporary hold on your funds. The most common is if you deposit an extensive check or make a sizable payment into your account. 

Banks do this to make sure the money is available from the other bank before letting you access it. They may also hold funds if a check looks questionable or there has been suspicious activity on your account. The hold gives them time to verify everything.

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Consequences of HOLD REL MEM CR

While the hold is in place, it can impact how you use your money. Even though the bank provides a “memo credit,” so your balance looks normal, you may not be able to withdraw or spend the Total Amount until the hold is released. 

Some impacts could include being unable to make certain purchases, withdrawals being declined, or, in some cases, an overdraft fee if the hold wasn’t expected. However, these restrictions are usually temporary. 

Once the HOLD REL MEM CR goes through and the hold releases, you’ll be able to access all your available funds again in your account freely.

How to Remove a Hold on a Bank Account?

If your bank has placed a hold on your account, the first thing you should do is contact your bank and ask them the reason for the hold. The most common reasons for holds are depositing a cheque that hasn’t yet been cleared or having suspicious activity noticed on the account. 

You can provide additional documents or information to the bank to verify transactions and assure them the hold is not required. The bank may ask for salary slips, identity, or address proof to remove the hold after verifying details. It’s best to politely explain your situation and request them to remove the hold as soon as they are satisfied all transactions are legitimate.

You can also visit your bank branch in person and speak to the account manager or customer service representative assigned to your account. Provide any paperwork they need and try to clear any doubts they may have. 

Following up regularly will help get the hold removed faster once the reason for placing it is adequately addressed. Having all account details and transaction records handy will help speed up the process. Remain polite yet firm in your requests and cooperate fully with the bank’s verification process.

How do I prevent HOLD REL MEM CR?

If your bank is placing a ‘HOLD REL MEM CR’ on your account regularly, it means they have noticed some related member credit issues or concerns in your account activity. The first step would be to check your credit report for any errors or defaults. 

You can get a free annual credit report and check for inaccurate negative entries to dispute them. You should also make timely payments on all your loans, credit cards, and other commitments to maintain a healthy payment profile. Pay at least minimum dues before due dates to avoid late payment penalties.

It also helps to separate finances if other users on your account may be causing the holds. You can open a new individual account. Communicate regularly with your bank about any significant financial obligations, income, or employment changes to avoid unnecessary holds in the future. 

Provide additional income or asset documents if the bank requires more security to remove such holds permanently. Maintaining a clean financial track record over time will help win back the bank’s confidence.

FAQs

What does HOLD REL MEM CR mean?

HOLD REL MEM CR is a hold placed by the bank due to related member credit issues or concerns about account activity.

Will I get the money in my account before the due date?

As long as there are no pending transactions or holds, you should get the money in full before the due date.

Does HOLD REL MEM CR mean a stopped transaction?

A HOLD REL MEM CR doesn’t necessarily mean a transaction was stopped but indicates the bank wants to review the account for any credit-related risks.

What if I need money urgently?

You can explain your urgent need for funds to the bank and request them to remove the hold immediately or provide alternative options like a loan.

How do I prevent HOLD REL MEM CR in the future?

Maintain a clean credit history by making timely payments and managing finances properly to avoid holds being placed frequently.

What is the exact reason behind HOLD REL MEM CR?

The holder is placed due to possible related member credit issues seen in the account activity, but the bank can provide more details on the specific triggers.

How long does the temporary hold last?

A temporary hold typically lasts 3-5 business days, but the duration can vary depending on the type of transaction and reviews required.

Can my bank stop HOLD REL MEM CR?

Speaking to your bank, providing documents, and addressing any concerns can help them remove existing holds permanently or stop fresh holds from being imposed.

How can I address overdraft fees resulting from a faulty hold?

You can politely request your bank to waive any related overdraft charges since they resulted from a hold placed in error rather than your financial misconduct.

What does “hold real mem cr” mean with Chase?

With Chase Bank, “hold real mem cr” refers to a hold placed on the account due to credit-related issues or irregularities found with any related members using the account.

What does “Hold REL MEM CR Pending” mean?

“Hold REL MEM CR Pending” notification means the bank is currently reviewing some credit-related risk factors in the account, which is kept on hold till further checks are completed.

What does holding REL MEM CR mean on my check?

If a check you deposited gets a “Hold REL MEM CR,” it implies your bank wants to review the check for any creditworthiness or fraud-related flags before making the funds available in your account.

Final Thoughts

HOLD REL MEM CR is a type of hold placed on bank accounts by the financial institution due to some credit-related risks or issues noticed with the account activity or associated members using the account jointly. Common triggers could be delayed payments, suspicious transactions, inaccurate credit reports, etc. 

The bank temporarily freezes access to funds for a review period while the customer’s creditworthiness is evaluated. Account holders need to maintain transparency with their bank, clear any negative entries from credit reports, and make timely repayments of loans or dues. Proactively communicating employment and financial changes can also help prevent unnecessary holds in the future.

If confronted with a HOLD REL MEM CR, customers should promptly contact their bank to understand the exact reason and provide any required supporting documents to address concerns. Explaining transactions clearly and assuring the bank of ongoing responsible financial conduct can help persuade them to remove existing holds quickly. 

Taking permanent corrective actions like keeping liabilities under control and separating joint accounts if needed can help rebuild trust with the bank and avoid repeated holds from being imposed on the account.