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#1838398 - 08/01/13 01:31 PM Fraudulent Check Liability
tdogz Offline
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tdogz
Joined: May 2012
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Someone made fake checks using one of our corporate customer's account numbers & used them in a scam involving purchases from Craig's List. Luckily we became aware of these items before they started paying on the customer's account and returned all of them within the Fed deadline.

Now our customer has received a letter from a credit union in Virginia where one of these items was processed. They want our customer (who has no banking relationship with them) to pay the credit union the full amount of the item, plus a $5 returned item fee. They then use the last paragraph to say that our customer has 10 days to pay or the credit union could take legal action against them that could result in a penalty equal to three times the amount of the check. Then they say that the credit union may have the right to pursue criminal charges against them as well.

I've never seen a bank send something like this to a business that isn't their customer. I'm not a lawyer but this seems shady, at best. They did throw in the words "could" and "may" in their legal threat, but it still seems like the letter is something with no legal basis and is designed to intimidate our customer. Is this a common practice? Am I just naive to think that this isn't allowed? Do they actually have legal recourse against our customer that I'm not aware of?

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#1838410 - 08/01/13 01:47 PM Re: Fraudulent Check Liability tdogz
Elwood P. Dowd Offline
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Start with the fact that they are ignorant and things will be a bit more clear to you. wink

This is your customer's issue, but if you want to be helpful write your customer a letter recapping the fact situation and how it was resolved much as you did here. If your customer wants to send the credit union a copy of your letter as an explanation that's up to them.

I'm resisting my compulsion to draft a cover letter for your customer...I would enjoy it immensely. mad

P.S. Before you get too feisty at my recommendation, look at the item as returned and note the reason you gave for returning it.
Last edited by Ken_Pegasus; 08/01/13 01:50 PM. Reason: Add P.S.
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#1838477 - 08/01/13 03:28 PM Re: Fraudulent Check Liability Elwood P. Dowd
tdogz Offline
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tdogz
Joined: May 2012
Posts: 229
Originally Posted By: Ken_Pegasus
P.S. Before you get too feisty at my recommendation, look at the item as returned and note the reason you gave for returning it.

We show it was returned as Altered/Fictitious

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#1838588 - 08/01/13 06:21 PM Re: Fraudulent Check Liability tdogz
edAudit Offline
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edAudit
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tart with the fact that they are ignorant and things will be a bit more clear to you. wink

how true.

Or the customer (without the banks knowledge or suggesting) could sent the CU a letter stating that the find the letter sent to them to be harassing and will be contacting their attorney for monetary damages.
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#1838599 - 08/01/13 06:35 PM Re: Fraudulent Check Liability tdogz
Elwood P. Dowd Offline
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Elwood P. Dowd
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Then your reason for return was correct and, except to a non reader, would indicate your customer was not liable on the item. I suggest you go with Plan A.
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