Remotely Created Checks & Reg J
Answer by John Burnett, BOL Guru Guru Bio
Question: Has Reg J been updated to address the return timing issues with remotely created checks? If it is addressed in a different Reg please advise.
Answer: Assuming that you receive checks for presentment via the Fed, you'll find what you're looking for in § 20.10 of the Fed's Operating Circular 3. You can find instructions on entering such a claim in the Fed's Check Adjustments Quick Reference Guide.
In general terms, you can submit adjustment requests for a warranty claim under Reg CC's section 229.34(d) within 90 days of the cash letter in which the remotely created check was charged to you. After that, you can pursue a claim directly with the depositary bank (or in the courts) up to one year from the date the cause of action accrues.
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