We have a business customer that mailed a check to a business for payment, and that payee is claiming they never got the payment. We can see the check cleared our customer's account in February 2018. We feel it could have been intercepted by a third party and negotiated. The BOFD did confirm that the check was negotiated at their institution, but obviously can not confirm who the third party is, or if it is in fact a third party. Do we have any recourse on this? We were thinking a warranty claim but do not have much experience with this or where to find those forms.
Is the bank liable for cashing an on-us check that was forged by the daughter of our customer? There was no stop-payment placed on the check.
Our customer wrote two checks to the same payee, one was dated 2/10/12 the second was dated 4/10/12. Towards the end of July, the payee notified our customer that he did not receive the checks. He signed an Affidavit of Forged Endorsement and we returned the check as fraudulent along with the affidavit. The depositing back disputed the item as a late return. Is there anything we can do now? Can we possibly claim breach of warranty?
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.
How long after a check has been paid can it be returned for forgery? What is the best way to handle the return?
What is the statute of limitations in each state for someone to submit a forged endorsement claim (ucc 4-406)?
Among credit risk, market risk and operational risk, developing a good operational risk management program seems to be the most challenging. Can't our existing compliance processes (e.g., AML, Red Flags, GLBA, etc.) contribute to operational risk management?
I have a member that came in to to fill out an affidavit of forgery on a check that came through her account as pre-authorized signature. She clearly stated on the affidavit that she did authorize the check, but she now found out that this company is a scam. Member did come in within the 30 days from her statement to dispute. But do we have to honor her affidavit when she was at fault for giving out her account number to a company before researching the company?
A opens checking account in 1997 -- balance never over 7500.00. In 2001, A fills out Membership/correction/update form and adds B as a joint owner. A has forged B's signature to the update form. 5 days later Bank receives in mail a check payable to B for 82,000.00. B`s endorsement in blank appears on back of check. Later detemined that the endorsement is forged. Account is now empty. B never contacted by Bank and no statements ever received by B, since update form shows B's address but the address is actually A's address. What standards of care should bank have used, if any, to verify the signature of B on the membership update form and on the endorsed check?