Tell us
what you think
Our Sponsors
 |
Our Sponsors
|
Question & Answer
Question: What happens if we pay a stale dated check? And how old is a check before it's stale dated? Our customer was really ticked because he got a check in his statement that he had sent to his daughter a year ago at Christmas. She evidently cashed it this Christmas, and whoever cashed it in her city didn't notice the year. He wants his money back for the check. It's only $100, but it's the principle of the thing!
Answer: The UCC comes into play again here - § 4-404 says, "A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than six months after its date, but it may charge its customer's account for a payment made thereafter in good faith." The UCC now recognizes the fact that many of us bulk file, and therefore don't see dates on checks. It also emphasizes the fact that liability for the check can be where the loss can best be prevented. That would be the check casher or financial institution where the check was negotiated in the daughter's city. You might, on behalf of your customer, write to the negotiating bank and ask them if they can help your customer recover by charging the check back if it was deposited. Otherwise, it's our opinion you "paid the check in good faith" and we'd refuse to reimburse. We'd tell him to get the $100 back from his sneaky daughter.
Copyright © 1998 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 8, No. 2, 2/98
Rate This Article
Current Rating For the Feature:
| Total Ratings for this Feature: 0 |
|