NSF Check Issue
Answer by John Burnett, BOL Guru Guru Bio
Question: Can we charge a customer's savings account for an NSF check that he wrote from his account at another bank that we cashed for a non-customer? This is the scenario: "John" only has a savings account with us. He wrote a $200 check to "Sara" from another bank. Sara is not our customer, but since John has a savings account with an average balance of $4,000.00, the teller cashed the check. The check was returned NSF. We contacted John, who said he would not take care of it because it is Sara's problem now. Can we charge this back to his savings account?
Answer:
John's not entirely off the hook. As a holder in due course, your bank should be entitled to enforce the check against John. You can demand that he pay you for it. You might consider taking it to small claims court.
I don't think you'll succeed, however, in setting off against John's account with you unless the court enters a judgment against John. Even then, you'd need to check your own state's laws to see if setting off is an option.
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!
