A customer deposited a credit card convenience check into his account at our bank. The paying bank did not honor the check because the customer's credit limit was maxed out. Unfortunately, we did not receive the return item until approximately 3 months later (FRB misrouted to Los Angeles instead of Richmond).
Is our customer still responsible for the funds?

It was your customer that deposit the item. It appears to be even draw on his own credit card account. Yes - he is responsibile.

I thought so. Thanks.