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!
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?
I was wondering if you could point me in the right direction as to where to find more information on compliance for paper checks? Whenever I place a stop payment on a paper check, there's a disclosure that says "this request will expire in 6 months in order to comply with regulatory requirements." For the customers who ask for a more in-depth answer, what can I tell them?
Are loan disbursement checks, escrow checks and accounts payable checks "official checks"?
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.
If we have a check presented for payment and the written/numeric amounts on the check differ, are we allowed to write what we took it for above the numeric amount? At a previous institution that I worked for, we wrote it in red ink, so the proof person would know instantly what we read it as.
We are the bank of first deposit for a cashier's check returned to us due to a stop payment by the paying bank. It is past the 24 hour window. We need the proper verbiage or a sample template to demand payment, in writing, based on UCC. Do you have a sample?
A check clears on a business account. The signature is good, it is within check number range and there are no red flags. Three days later another check clears, but it is flagged as duplicate. The client claims the first check is fraudulent. What is our recourse and obligation to the business, and is this different than a consumer account?
"A" deposits a check from individual "B" in his account. The check bounces. Both banks are located and do business in Los Angeles county. How long (or how many days) the bank has to inform "A"?
- Please include the code / regulation reference.
- I understand that depending on different factors it could take from couple of hours up to 2 business days (for the bank) to find out that a check has bounced .... the question is when the bank finds out (a) the bank is obliged to inform A and (b) within xx number of days.
Recently we have been receiving Breach of Warranty Claims for fictitious checks and/or forged maker signature checks drawn on the Bank's submitting the claims.
My understanding is that under the UCC the paying bank has until its midnight deadline to return a check for these reasons. We initially denied the claims, but have now received demand letters stating that are in breach of warranty provisions.
Along with these claims, banks are providing hold harmless agreements stating that their customer has filed formal complaints with law enforcement. From what I can ascertain they are attempting to use the warranty to claim that the creation of a fake check is an "alteration". We don't belong to a clearing house that allows warranty claims on fraudulent checks.
Any insight you can provide is most greatly appreciated.