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#1393217 - 05/19/10 01:52 PM Verbal verification on cashier checks
Compliance101 Offline
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Compliance101
Joined: Oct 2004
Posts: 473
Tennessee
We have had issues with counterfeit checks on our bank. One of the counterfeit checks were sent through another bank. The other bank called for verbal verification and did not get the amount verified, just the check number. It is a check number of our bank so it was verifed by our teller. However, the check was a counterfiet so it was sent back. Does our bank have to stand behind this verbal verification since it was a counterfeit? What can we as a bank do?
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#1393276 - 05/19/10 02:33 PM Re: Verbal verification on cashier checks Compliance101
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Verbal confirmations are statements made at a point in time with limited information, and don't commit you to paying a check that turns out to be counterfeit or, in the case of customer checks, drawn on insufficient available funds. That said, your staff always should couch any check verification in terms of "based on current information" and "subject to verification at actual presentment."
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John S. Burnett
BankersOnline.com
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#1393319 - 05/19/10 03:11 PM Re: Verbal verification on cashier checks John Burnett
Compliance101 Offline
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Compliance101
Joined: Oct 2004
Posts: 473
Tennessee
This definitely answers my question. Thank you so much.
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"No one can make you feel inferior without your consent."
Eleanor Roosevelt

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#1393654 - 05/19/10 08:31 PM Re: Verbal verification on cashier checks Compliance101
madukes Offline
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madukes
Joined: Jul 2009
Posts: 1,465
Flyers Country
back when we used to do verbal verifications, I always stated, that checks good/not good "at the time present time". Thankfully we no longer do it smile

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