Is a bank required to send in counterfeit currency to the Secret Service or report and turn it into the local police department?
Visa debit card dispute. A customer just noticed transactions that posted to their account. The customer is disputing three different companies. Do we figure the time frame each merchant? Or would the liability be on consumer because they did not notify us to block their account on the first transaction?
If a customer deposits a cashier's check for $50,000 and the branch wanted to place a case by case hold, should the first $5000 still be made available and the remaining $45,000 held for two business days?
Regarding Reg. E - I know this regulation does not cover the customer in cases of "buyer's remorse" in which they authorized a transaction, but changed their mind. However, what does the Regulation say concerning transactions that a customer has authorized, but then doesn't receive the merchandise, or receives merchandise which is not what they thought they were purchasing. For instance, they receive counterfeit goods instead of the "real thing." Is the bank obligated to take the loss on these types of disputes, especially in cases where the customer can't return the merchandise because the merchant won't provide a return address? Visa won't dispute a transaction if the customer still has the item, but if the customer can't return it, does Reg. E require that we take the loss for the customer?
What is the time frame that a customer has to return a counterfeit or forged check back to the bank once it is discovered on their account?
A customer notified the bank of forgery on checks drawn on our bank. These were counterfeit checks with a forged signature which were cashed by our tellers. The tellers exercised ordinary care: verified the signature card, obtained proper ID and a thumbprint. But these counterfeit checks were too good and almost identical to the real thing. The customer notified us within the correct time; therefore, we refunded the money. A state police officer said that the bank is not the victim; the customer is the victim, so we didn't have to refund their money. The customer is victim of check fraud, not us. I realized that the police officer may not know of banking regulations, but is there any truth to this? I thought, per the UCC, that the Bank is liable for this. We cashed the checks and they had a forged signature; therefore, we take the loss.
Our financial institution issues the VISA check card to our customers. We have had fraud issues that VISA denies us charge back rights on. They are protecting the merchants and the ones committing fraud but what about the cardholders and card issuers? Shouldn't VISA reimburse us for this loss? How can a FI get restitution for the money they lose when protecting their customers against fraud?
If my Credit Union is presented with a counterfeit check that they confirm is counterfeit, can that original check be released to the member or is our institution potentially liable under any regulation should another institution take a loss on that counterfeit item and learn we had the item at one time and released it back to the member and therefore back into circulation? Can we just have the member sign a release form acknowledging the item is counterfeit to solve this situation should the member insist on retaining the counterfeit item?
We are thinking about offering E-deposits to customers. The customer would go into the home banking application, enter the amount of the deposit and the check information then physically mail us the paper check. The customer would receive immediate availability on deposits up to a specific limit. Once checks are received (within 5 days) we verify the check information and process the checks normally, but do not post the funds. If the checks are not received in time, we can extend the time requirements. What type of transaction is this considered and which regulation does it follow? Reg D, DD, E or Z? Do we have to provide special disclosures and if so, which ones?
We have a customer who had their Visa debit card stolen. He filed a police report and we filed a dispute. The dispute came back denied because they had a signature, but it was not his signature. Why are [Name of Discount Stores Withheld] not responsible for these charges as they did not check the ID of their customer? The signature is clearly different, what can we do?