I wondered if this is normal for a credit card company.
I posted a cheque to my Capital One account for £1100 to clear my balance and put me in credit as I was planning on making a couple of large transactions on my card.
After about a while the amount paid in was showing in my balance so I had a minus balance. Naturally I assumed I had available credit again but when I went to use my card it was declined. I called Capital One and was told that although the cheque had 'cleared' because it was a large amount they hold it for another 10 days in case the bank the cheque was drawn against take the money back.
This was incredibly inconvenient. They said if I had sent smaller cheques the money would be available as soon as it's cleared but they have to hold it if it's a bigger amount.
They said they can release the funds if I get the bank to send them a fax stating the amount has cleared the account and cannot be taken back. Otherwise I have to wait another 10 days (24 in total) before I can use my card again!
I have never heard of this practise before. Is it normal?