Is a late return allowed for fraudulent items? We had a customer deposit a check from a Nigerian fraud scam and we were wondering if a late return was allowed on a fraudlent item. Any guidance would be appreciated. thanks!

If the check is drawn on a U.S. bank and is counterfeit, the drawee bank does NOT have late return rights. The check must be returned by the bank's midnight deadline.

There could be an exception if your bank and the drawee bank both belong to a clearinghouse that has a rule allowing a warranty claim under such circumstances. Check out http://www.cocha.org as an example.