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#110334 - 08/27/03 05:33 PM Stolen checks
Anonymous
Unregistered

Situation:

7/16, a customer of ours deposits checks into her account, and later withdraws the funds.

The bank that these checks are drawn on notifies us that their customer has stated that the checks were stolen and their signature was forged. They have him sign an affidavit and send it to us asking for payment. They notify us after they have cleared their customer’s account, 7/30.

My question, if they accepted these checks, never returned them to us marked ‘stolen’ or ‘fraudulent’, and let them clear their customer’s account, are they liable because they didn’t check signatures?

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Operations Compliance
#110335 - 08/27/03 05:36 PM Re: Stolen checks
Skittles Offline
10K Club
Skittles
Joined: Sep 2002
Posts: 13,965
TN
My head me be somewhat muddled on this Wednesday, but I think the paying bank is responsible for not verifying their customer's signature.
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#110336 - 08/27/03 06:06 PM Re: Stolen checks
JacF Offline

Power Poster
Joined: Nov 2001
Posts: 6,719
PA
I'm with Skittles. This sounds like a forged maker's signature, so the paying bank must return the items by their midnight deadline.

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#110337 - 08/27/03 06:18 PM Re: Stolen checks
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
At the risk of being redundantly repetitious, ditto here. You can refuse the claim.
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BankersOnline.com
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#110338 - 08/27/03 06:56 PM Re: Stolen checks
MidwestCFE Offline
Platinum Poster
MidwestCFE
Joined: Jan 2003
Posts: 524
wish it was the Smoky Mountain...
Paying bank is liable..I would, however, be closing your customer's account pronto , and filing a SAR if dollar thresholds are applicable..
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