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#1366202 - 03/30/10 03:57 PM "refer to maker" on Cashiers Checks
rodeofan Offline
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Joined: Mar 2010
Posts: 14
Texas
I am new to Compliance and have been researching cashiers checks. We received a CC back from another bank marked "Refer to Maker". I was asked if a CC could be returned that way. I know there are circumstances for marking a return item refer to maker, but haven't been able to locate them. Could someone direct me?

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#1366266 - 03/30/10 04:32 PM Re: "refer to maker" on Cashiers Checks rodeofan
Georgia Plum
Unregistered

Cashiers checks shouldn't be returned at all unless they are fraudulent. Have you contacted the bank to ask them why it was returned for refer to maker?

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#1366318 - 03/30/10 05:07 PM Re: "refer to maker" on Cashiers Checks rodeofan
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Someone needs to call them. The dollar amount will indicate whether it's you or your attorney.

Tell them gently: "This is a cashiers check and your bank is the maker, you [censored]. Your bank's the one that is going to get sued."

I'm not aware of any official guidance on using the term "refer to maker." I deeply regret that the Commentary to Regulation CC acknowledges it may be approprpriate to use this as a reason for return in some circumstances. However, I note that it does not give any examples as to what those circumstances might be.
Last edited by Ken_Pegasus; 03/30/10 05:47 PM. Reason: Attempted to answer the question actually asked after ranting a bit
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#1366340 - 03/30/10 05:20 PM Re: "refer to maker" on Cashiers Checks Elwood P. Dowd
madukes Offline
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madukes
Joined: Jul 2009
Posts: 1,463
Flyers Country
Just an FYI, we sometimes get duplicate items returned as "Refer to maker" instead of as an adjustment.

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#1366422 - 03/30/10 06:04 PM Re: "refer to maker" on Cashiers Checks
rodeofan Offline
New Poster
Joined: Mar 2010
Posts: 14
Texas
We have spoke to both customer and institution and the check was returned refer to maker because the CC was made out for the wrong amount and they are going to issue another CC for the correct amount.

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#1366578 - 03/30/10 08:20 PM Re: "refer to maker" on Cashiers Checks rodeofan
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Well, I certainly hope your bank wriggles out of this unscathed. Ken didn't say it, but I will -- Refer to maker is a lame excuse for "we don't want to pay for this puppy but we can't figure out a legit reason to deny payment." In this case, the fact that the check was made out for the wrong amount is not a valid reason for the issuing bank to return the check -- it has no defense to payment that is effective against your bank.

That said, it is probably true that things will sort themselves out here and everyone will end up getting what he, she or it should have.
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#1366748 - 03/31/10 12:40 AM Re: "refer to maker" on Cashiers Checks John Burnett
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
Tell them gently: "This is a cashiers check and your bank is the maker, you [censored].

Ken, those were my exact thoughts when I read this........
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