We have a customer who deposited a check on 12/30/08. On 01/16/09 we received the item in our returns marked fraudulent. We did not receive any prior notice per phone or fedwire advice. I contacted the bank in question to ask when they received the item and when was it returned. I was told that the item was received on 12/31/08 and returned to their correspondent bank on 1/2/09. I was told they mail their returns. I told them we were going to dispute it as a late return and the person I spoke with understood. We did dispute this on 1/16/09 and today received our debit from FED and the information sent to us by the paying bank matches the information I received from the bank personel.

The item was for $4,940.00 and we never received any prior notice concerning the return. I asked if they had placed call and was told no. The bank returned the item on 1/2/09 and it was not until 1/5/09 @ 12:32PM that they made the withdrawl I believe that if we had been contacted timely we would have been able to stop the withdrawal and limit the customer's loss. The check was received in conjunction for a secret shopper scam. Our customer did have money in account to debit so we are not at a loss but wonder if we have a valid claim against the payee bank for no large item notice. Their response to our late return claim does not list that they did make a notice of no-payment and our BOFD info on the back of the check is plain to see and was sent to them via image so it also would have been imbedded in the fed record.

What are options which we should or may try to help out our customer. I do realize that the bank shows that they returned the item timely but wonder if no call made and the delay in receipt might be of help.

thanks!

"What are options which we should or may try to help out our customer. I do realize that the bank shows that they returned the item timely but wonder if no call made and the delay in receipt might be of help."

Of what value is it trying to help the customer? If the customer sues you for late return then I would deal with it. Since you did not lose any money, you are going to have a hard time making a claim stick as the other banks are most likely going to say sue us, as they know you won't for that small of an amount. Plus, since you recovered the money - what is your claim of loss or damages?

You don't have a late return claim at all. The return was timely. You would only have a claim for non-receipt of the required large item return notice if the delay in notice caused you a loss. Since you didn't sustain a loss, you don't have a claim.