We cashed a check for a customer in November, and the drawee bank returned it as "Counterfeit" over a month later.

We sent our Claim of Late Return and they refused it. In their response they acknowlege that the check was returned over a month later.

Many phone calls have been exchanged, but they've basically said they've discussed the situation and decided they're not going to comply with our Claim and not send the money.

um - when did we all get the ability to make up our own rules? It's not enough money to get a lawyer involved. But the principle of the matter is what's urking me. What steps can I take?

In going bank to bank you are dependent upon the other institution's 1) knowledge and 2) integrity. Some banks have little of either in this particular area.

Sue them or chalk it up to experience.

I had the same thing happen once and I got Fed involved. They wouldn't step in to help at all. We ended up taking a loss.

unless the item was returned late thru the fed and the late return claim was made thru the fed, they will not take action.

I wonder what their primary regulator would think about the bank's decision not to adhere to the law?

Everything was run through Fed. The late return & late return claim. Should we be pursuing Fed to help us?

Good luck. The Fed has pretty much backed out of any "policing" role and assumes the role of pipeline for adjustments.

yes, you should contact the adjustmetn department at FRB for assistance. As John said, it may be difficult getting them to help, but if you have a good contact they may step in

I had to battle one of the big banks for a late return. It took 3-4 months but you have to be persistant and you will get your money!I even had a supervisor from the Fed adjustments step in and talk with the bank. They wont help but they can surely ask the other bank as to why they sent the return claim denial form back with inforamtion stating they were in the wrong. Or send a seperate letter to the bank stating in the Reg there obligation to notfify you was not timley and state there cash letter info with yours asking for a check be made out to you for your loss. You have to go the whole nine yards if you want it.

We just found that out the hard way. customer deposited a remotely created check in september. we received it in our returns in february. we filed a late return claim with the fed and got the $150. the other bank filed their response so the fed took the money back from us. On their form they even indicated they received the check in Sept and returned it in february. I sent an RFI to the fed asking why they gave the % back when the other bank admitted it was late on their form.

their response: "we handle late claim as a couresy or offered as for convenience only. it is not for us to determine wehter the statements are in claim form are correct. Our role is simply to provide entry between the depositor and the paying bank." Why bother at all?