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#1116200 - 01/23/09 06:18 PM Oops - Made a mistake
smash Offline
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Joined: May 2004
Posts: 331
Texas
We have two customers, Mr. A and Dr. B. Mr. A was in an accident and went to Dr. B for treatment. Insurance company C issues a check to Mr. A and Dr. B jointly payable. Our bank deposits it into Mr. A's account without Dr. B's endorsement (oops). That happened Febraury 2008. Dr. B began questioning Insurance Co C in April as to his pmt and received a copy of the check showing our goofup. Our bank instructed him to contact Insurance Co C back, asking them to have their bank return the check to our bank for improper endorsement. This is the normal process, right?? This way we could charge the check back to Mr A and refund the insurance company so they, in turn, could refund Dr. B. Even though I have spoken to the insurance company AND their bank, we have yet to see the check back and Dr. B is getting impatient (He seems to think 11 months is too long to get paid. :)) I have finally gotten to a higher up in the insurance company who asked me to put my request in writing and he would review it with his accounting group and get back to me.

The check is for $1160. I could reimburse Dr. B directly and just eat the loss since I would have no recourse against Mr. A without the check or I could wait for the results of the discussion at the insurance company. What would you do?

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#1116231 - 01/23/09 06:56 PM Re: Oops - Made a mistake smash
Al Miller Offline
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Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
Your Deposit Account Agreement does not give you the right to charge-back a photocopy of the check?

Al
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Al Miller, CRCM
Opinions expressed are my own and not necessarily shared by my employer.

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#1116378 - 01/23/09 08:16 PM Re: Oops - Made a mistake Al Miller
smash Offline
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Joined: May 2004
Posts: 331
Texas
Yes but without a return reason on the check from the drawee bank, what right do I have to charge back a copy?

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#1116418 - 01/23/09 08:51 PM Re: Oops - Made a mistake smash
Al Miller Offline
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Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
How about "Endorsement Missing"?

Al
_________________________
Al Miller, CRCM
Opinions expressed are my own and not necessarily shared by my employer.

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#1116440 - 01/23/09 09:03 PM Re: Oops - Made a mistake Al Miller
smash Offline
Gold Star
Joined: May 2004
Posts: 331
Texas
But I am not the paying bank. You're saying, as the depositary bank, I can write a reason for dishonor on the check?? I thought only the paying bank can dishonor the check.

Forgive me for sounding stupid here. I just have never encountered this situation.

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#1116599 - 01/23/09 10:46 PM Re: Oops - Made a mistake smash
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,912
Galveston, TX
Dr. B has no claim against the bank as this point. His claim is with the insruance company. The bank should not be involved and I would not process a return in this manner. If the insurance company cannot recoup their funds, they would be the one with the clainm against the bank, not Dr. B.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1116625 - 01/23/09 11:00 PM Re: Oops - Made a mistake rlcarey
smash Offline
Gold Star
Joined: May 2004
Posts: 331
Texas
I agree. Does it make a difference to you that Dr. B is also your customer and you as a bank feel bad because you screwed up and want to asisst Dr. B any way possible and that Dr. B is 10 times a better customer than Mr. A???

What would you do? Would you take the legal route and say go get your money yourself and risk losing the customer? Would you write it off and refund the good Dr. the money? or Would you do what I was doing in the first post and try to get the paying bank to make a breach of warranty claim against us and send the check back so I could charge it back to Mr. A?

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#1116649 - 01/23/09 11:12 PM Re: Oops - Made a mistake smash
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,912
Galveston, TX
That is purely a customer service call and will be up to the bank, but if you never get the charge-back, you have no right to recoup the loss from Mr. A.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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