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#131280 - 11/17/03 06:02 PM Timely Customer Reimbursement

At what point does a bank have to reimburse its customer for forged checks? We have a customer that had their checks stolen, the customer did not realize their checkbook was missing, and a large sum of forged checks were cashed at our bank. Due to some questions I have about the entire situation (as in, why, when the customer reported the forgeries to us, did they stop ???), I am hesitant to reimburse the customer until the Police have had a chance to conduct a full investigation into the stolen/forged checks. What does your bank do ???

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Security - PUBLIC
#131281 - 11/17/03 06:24 PM Re: Timely Customer Reimbursement
RBanker Offline
Power Poster
Joined: Jul 2003
Posts: 2,675
Austin Texas
At our bank, we would follow these steps:
Have customer complete an affadavit of forgery - Make sure that items in question fall within your review timeline.
Do your own research - do signatures match or not? Check video, if available. Interview tellers.
If a true forgery - inform customer that you will refund funds and proceed by involving local police.
Determine if you have a suspect - sometimes a good video/DVR image will allow customer to help you identify who presented the forgeries - it always makes it more interesting if it is one of their family members.
If customer is adamant about bank refunding monies, make sure that they are aware that you will be filing charges with local PD and an arrest may be forthcoming.

Part of your interview may include asking where they think the suspect might have gotten a hold of the checks - if the customer was negligent in securing these items, they might share some responsibility. This is something that you might want to discuss with bank legal counsel.
My comments are absolutely no reflection of, nor influenced by, my employer - take them at your own risk.

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#131282 - 11/25/03 07:06 PM Re: Timely Customer Reimbursement
Dana Turner Offline

Platinum Poster
Dana Turner
Joined: Dec 2000
Posts: 543
Pipe Creek TX - U.S.

In addition to requiring that the victim complete the affidavit of forgery, always require that the person file a theft/forgery report with the local law enforcement agency before you take any action. It's one thing to lie to you -- it's another thing to commit perjury by filing a false police report.
Celebrating 42 entertaining years of crime . . .

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