Member Demanding Original Paper Checks
by John Burnett, BOL Guru Guru Bio
Question: We have a member who deposits checks from another bank into his or her account with us. Since we transmit everything electronically, the other bank can no longer return the actual checks to the member. Now the member is demanding that we return the paper item to the other bank so they can in turn return it to them. I've explained how to get a substitute check, but he or she insists on having the paper check back. The member says he or she never gave us the right to "keep" the check. We use automation equipment and it would be impossible to comply with the request. Is there something in the UCC or would the other bank have had to provide some disclosure that basically would have informed him that his paper checks may no longer be available now that they accept electronic files?
Answer: There is nothing in the UCC that addresses your end as the depositary bank that is truncating his checks. The UCC does, however, address (in § 4-406) the other bank's ability to send him a statement without items, with or without images. You had no obligation to provide the original checks that your customer deposited with you before you started truncating them. You still have no such obligation. Your customer may (depending on state law) have a right to obtain free copies of the paid checks from the bank they are drawn on. That bank has no control over whether another bank that takes checks for deposit will truncate them or not. The way checks are being processed is changing rapidly. Some individuals won't take the changes kindly; this customer appears to be one of them, but there is simply nothing that you or anyone else can do.
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