06/12/2022
We issued a cashier's check on the 6th of the month and it cleared our bank on the 15th. We were notified by a family member that the cashier's check was fraudulently obtained and endorsed. Am I correct in thinking that we have no recourse since it has been more than 24 hours since it was received and it would be considered a late return?
05/22/2022
We have a customer who pays a company, that company processed the check as ACH and days later deposits the actual check. In this case are we able to return the actual check that cleared secondarily as duplicate item within the 45 or 60 days from statement date?
02/20/2022
Regarding 12 C.F.R. §1005.11 - Am I correct in understanding that consumer liability MAY be applied in the tiers but is not automatically applied to all of those claims in which it may apply?
For example, lets say we have a $74.00 transaction in question and the claim is that it is unauthorized. We determine that it is a fraudulent transaction. If we hold the consumer liable for $50 (granted they told us about it within 2 days of discovery) that means that we could not file a dispute (according to our vendor's procedure) because we would have to file for the full $74 and upon winning that dispute we would then profit from the dispute process as we are only "out" $24 at this point but would have an excess of $50 and no account to apply it to except Other Liabilities and we cannot offset our debit card losses with it. Let's say that we just hold the consumer liable for $50 and write off the $24 as a loss, which would make no sense to me either seeing as how our chargeback process is only $12 a claim.
Also, we have Visa debit cards so in saying that, if the transaction was not run through the Visa network, but say run through STAR, would our consumers not have the Visa Zero Liability protection since the card used has a Visa brand?
02/06/2022
We sent a check out in our cash letter, and the check number was encoded wrong. That is it, nothing else.
When the makers bank received the check, they paid it. Then days later they realized that check had a stop on it. The stop was on ck# 1855. We sent the check to that bank with no check number at all. Our machines did not pick it up. They are wanting us to pay them back for the check because we sent it out without the check number, however they missed the stop too. The check suspected and they failed to notice the check number was not correct and it had a stop on it.
02/06/2022
What is the return window for endorsement issues? Are they all the same for Missing, Irregular or Forged items?
10/24/2021
May a noncustomer have direct ACH deposits made into a customer's account without that person being on the account? What are the potential problems if we find this?
10/10/2021
We received a call from a credit union on 9-1-21 informing us that a cashier's check on them was fraudulent. We sent that check out on 8-5-21. We waited 10 business days to give the customer credit. (8-20-21)
The customer has spent more than half the funds but I placed a hold on the remaining amount. Do credit unions not return through the Fed like banks? They sent us an Indemnification Agreement to sign and send the funds back. Could this be considered a Late Return? Help!
10/03/2021
If a mother allows her son to use her debit card and PIN, then another day the son takes the card and withdraws cash from the ATM (which we have video of him) and the mother does not want to press charges, does she have dispute rights? Can we the bank require the police report in order for her to make a claim? She says he does this all the time and he lives with her.
09/12/2021
A corporate customer's account was recently compromised. Information from an authentic check was used to create fictitious checks. Numerous $100 checks were negotiated. The fake checks don't include a payee name. In addition, the checks don't have any type of endorsement. If we consider these checks bearer instruments, and no endorsement is required by UCC, do we have any recourse with the institution who processed the (fictitious) checks, or is the loss on our side since the customer failed to identify the fake checks in time for a timely return?
08/08/2021
I was asked today, on our bank's affidavit of fraud and forgery form for checks that have been cashed fraudulently, why we require it to be notarized. Is this required? The people who created the form and implemented it are no longer here. We are trying to figure out if a customer has check fraud, on our form that customers sign, does the bank have to have a section so it is notarized?