If we intend to close a checking account due to suspicious activity (SAR has been filed), how many days notice must we give the customer when they have direct deposit to the account?
We have a client that is reporting in April that checks posted to his account in Jan are due to fraud and that they were stolen during a home invasion. He is requesting to be made whole for the transactions. Do we as the paying bank have to comply? The bank of first deposit has refused our return claiming it was past our midnight deadline.
We use a Processing Agent for our online banking funds transfer to other FIs. We have a situation where our member initiated a funds transfer via our online banking to transfer funds from another FI to us. These transactions processed as usual. Now the other FI is stating it is fraud. We are trying to determine our liability (funds have already been spent and it is past the 60 days). It was our understanding that the processing agent would verify the supplied information for things like name match. Our member's name isn't even CLOSE to the individual that the other FI says the funds came from. Is this 3rd party responsible for not verifying this information or do we in fact have to pay back these funds at our loss?
When a customer applies for a mortgage loan, is it necessary for us to keep a copy of their entire Tax Return?
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.
In Texas, is it legal to issue a stop payment on a Cashier Check issued the same day? Is there a time frame and/or an indemnity bond requirement?
According to Reg P, a financial institution is not to give out any account information, including account balances and account status. We regularly get calls from other financial institutions, companies like Comdata, and individuals asking if a check or ACH will clear. Are we allowed to give out that information under Reg. P?
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?
Does REG E apply to disputes submitted for reasons other than fraud and funds transfer (such as service and or quality)?
Should a SAR be filed for debit card fraud when a police report has already been made?