|
|
|
 |
NSF Check Frustration
by John Burnett, BOL Guru
Guru Bio
Question: We received a check back stamped NSF that our customer deposited. We charged this back to the customer's account. Our customer then presented it to the payee bank and the payee bank cashed the check. Apparently, the teller that cashed the check should not have and the payee bank has now returned it once again to BOFD stamped account closed. Can the payee bank return it back to us even if it wasn't redeposited at our bank?
Answer: If the paying bank honored the check by exchanging it for cash at the teller line, the check is finally paid and there are no charge-back rights. Your bank should refuse to accept the charge-back of this check. Doing so will be cumbersome, but the other bank should not be able to get "off the hook" in this way.
First published on BankersOnline.com 4/21/08
Privacy Policy Disclaimer Recommend This Site ! Contact Us
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
|
|
|
|
Print Friendly!
Email This Article!
Discuss NOW!