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#1961302 - 09/11/14 05:44 PM Electronic Check Deposit vs Paper Check Deposit
cscribner Offline
New Poster
Joined: Apr 2004
Posts: 7
Boston
I know there are other questions about RDC but none have answered my question so far.

Here is the story

In March 2014 a former customer deposited a check via consumer mobile deposit. In July 2014 this former customer deposited the same check at a branch of another bank. The payor bank sent a PAID adjustment to Bank#2 in August 2014. Bank #2 is attempting to pass this adjustment on to us. They faxed us a request asking us to send them a check.

My question is this. Are we REQUIRED to pay this adjustment? We have no way to recoup this money from our former customer (who is a former customer for reasons such as this)and the item is over $5,000.00.

Thoughts?

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eBanking / Technology
#1961424 - 09/11/14 08:54 PM Re: Electronic Check Deposit vs Paper Check Deposit cscribner
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
If the paying bank had interdiction capability to detect the duplicate presentment, it would have bounced the second deposit, which was probably of the paper item. That's what should have happened, IMO.

But I bet the dupl payment was caught by the check issuer, who rightfully demanded (and received) reimbursement after the paying bank had missed its midnight deadline for returns.

Under current rules, I don't think you are obligated to pay Bank#2. It's their bad luck that they took the check and that the Fed allows a PAID adjustment for an item deposited in paper form.

If the Fed proposal from earlier this year is included in the final Reg CC revisions (if they EVER get here!), you'd be on the hook as the RDC bank because your mRDC product adds risk to the payment system by allowing a check to be capable of being used more than once.
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