I need some advice on how other banks handle this situation. Customer deposits a check (no hold of course)that is returned counterfeit. Meanwhile, the customer spent all the money. The customer claims that she's a victim. You know . . . because she received the check from someone she was corresponding with over the internet. She thought it was a claim that was owed to her. Long story short - account is closed / charged off about $3000. Since the customer is a "victim" he doesn't want to lose his account. However, has no money, no credit, no collateral, no real job to speak of etc. but wants to pay us back $50 a week.

How do other banks handle those types of requests? Do you accept the agreement knowing that if you turned it over to collections you might get nothing? Please share what you have done in similar situations.

Thanks. I really appreciate any help.

Send it to collections.

It is her job to make you whole, and the authorities job to make her whole.

Depends on the customer whether we allow them to pay us back via a written agreement, send to collections or file a police report if fraud was evident.

WE have had several of these situations in the last year - all were victims. Some of the customers was willing to sign a note and make payments, one filed bankruptcy, and one was never heard from again. We accept what payments we can get in order to limit our loss.