Latest Compliance - Check Presentment Topics

Check Converted Into ACH-Check Also Cleared Account Much Later

04/25/2021

We had a check post to a customer's account on 1/28/2021 and they brought to our attention in late February that this check had already paid on the account on 9/28/2020 as an ACH check conversion. It is too late to return either item so how would this be handled? Would we need to get with the ODFI of the ACH to see if they would return the funds to us in good faith?

Allowed to Use ChexSystems when a POA is Used?

03/28/2021

Are we allowed to use ChexSystems when a POA is used?

How to Verify Another Bank's Cashier's Check

12/27/2020

I am new to work in a bank and want to know if all banks verify the cashier's check the same way. If a non-customer walks into the bank and tries to cash a $180K cashier's check and asks for $5000 in cash and the remainder in a cashier's check, do I legally have to do this? And if they don't want to open an account do I have to cash it for them? How do we know when a check is valid, or if it has been altered or when it isn't as I haven't been taught how to verify another bank's cashier check?

Foreign Check Returned 4 Months After Deposit

12/13/2020

We had a foreign check returned to us from the clearing US bank. The date of deposit was June 11 and we are just getting it back more than 4 months later. Are we able to refuse this?

Time to Return Possible Fraudulent Check

12/13/2020

We have a customer that deposited a check, which we believe to be possibly fraudulent. The check was issued for work in another country and the description doesn't match what the depositor does or the work in the other country. The work is being performed by his girlfriend and we believe the girlfriend is solely on the internet. So there are a number of red flags. How long does the issuing bank have to return the check to us for reimbursement from our customer's account? Does that time frame differ if the check is deemed to be fraudulent? I have heard up to one year. However, we can't hold the funds that long, or is there a stipulation-reason we could use to hold funds for one year? If the funds are gone, are we required to return the funds after 90 days? After one year? We are trying to plan not to get caught having to return $10,000 that we believe to be fraudulent.

Check Payable to Susie Q dba ABC Flowers?

10/04/2020

Can a check be cashed if it's payable to Susie Q dba ABC Flowers?

Reg CC Holds-Cashier's Check/Large Deposit

04/26/2020

I need a clear & simple chart to help me understand Reg CC holds. I understand rules are changing in July, but I need something to help me today. Specifically, I have a customer depositing a cashier's check from himself at another bank payable to himself here in the amount of $106,000. How do I handle this? Example: 2-12-2020: Place a Large Deposit Exception hold on the check making $200 available 2-13-2020, $4,800 available 2-14-2020 & $101,000 available 2-24-2020 or because it's a cashier's check do I make the entire amount available on the next business day?

Midnight Deadline for Forged/Altered Items?

12/15/2019

It has been my understanding that a bank has up to a year to return items in the event the item is altered or the endorsement forged. I have another bank stating that the midnight deadline applies. Could you please provide clarification. I am located in Florida.

Responsibility for Check Deposited Through ATM

12/01/2019

Who is responsible for a check that was deposited through an ATM? In this case the paying bank sends an affidavit of altered check 20 days after the deposit was made. Then calls to state the payee and endorsement does not match, but also states in the affidavit that customer stated it was not his signature and someone stole the check from the mailbox.

Reg CC RDC Indemnity:Liability and Timing

09/29/2019

For the Reg CC RDC indemnity, it states; "(2) A bank described in paragraph (f)(1) of this section shall indemnify, as set forth in § 229.34(i), a depositary bank that accepts the original check for deposit for losses incurred by that depositary bank if the loss is due to the check having already been paid." We have a customer which is a business offering check cashing and it makes deposits via remote deposit capture. I am confused over the liability and timing of paper vs. electronic deposits, duplicate items and will restrictive endorsements influence liability?