Question: We got a check back, through the work, that has a stamp on it marked "Other" and written on the face of the check were the words "forged endorsement". We had cashed the check for the payee, so we have nowhere to charge it back. Do we have to just accept the return, or do we have any recourse?
Answer: In the case of a forged endorsement claim, you will require a forgery affidavit signed by the payee, or, in the case of a decedent, a copy of a death certificate and a forgery affidavit signed by the rightful claimant in order to honor the claim. You should not depend on the stamp of the bank as proof of claim. It is highly unusual to get a forged endorsement claim back in the work. Most arrive through the U.S. mail with the forgery affidavit attached.
Forged signatures, on the other hand, can arrive with just the stamp on the face of the check and that claim is substantiated by the returning bank. They have the signature on file, and are in a position to return the check timely and make the claim on behalf of their depositor.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
Print Friendly!
Email This Article!
Discuss NOW!
