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#96723 - 07/14/03 03:26 PM Unauthorized Signer
Anonymous
Unregistered

We had a business customer come in and remove one of his employees as an authorized signer. A new (bank)employee removed them from the actual account, but not off the Customer Identification Profile side. The customer's employee came in last week and cashed a check at one of our branches. Obviously we were wrong in cashing the check. Other than refund our business customer's money, what other action should we take to recover the money from the employee?

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Operations Compliance
#96724 - 07/14/03 03:36 PM Re: Unauthorized Signer
RedWriter Offline
Junior Member
RedWriter
Joined: Mar 2003
Posts: 26
South Carolina
Although the signature may have been unauthorized, was the employee who cashed the check entitled to the payment? If so why would you owe the business customer any money back?
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#96725 - 07/14/03 03:56 PM Re: Unauthorized Signer
Don_Narup Offline

Power Poster
Joined: Jul 2001
Posts: 3,708
Las Vegas Nevada
It sounds like the employee signed and cashed a check after the customer withdrew their authorization. If this is correct then don't assume its a fraud situation. You need to get some more facts.

Ask the customer if the employee was notified they no longer had authorization. Did the customer suffer any loss as the result of this check being cashed? Perhaps it was legitimately a final pay check. While the signature was unauthorized the customer may have had to pay the amount anyway. The customer should not Profit for this. They can get mad any holler at bank employees for being careless, but no loss no reimbursement.

IMO You need to get more information before handing over dollars to the customer.
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