Included below are excerpts from our disclosure. I’m trying to develop a matrix for frontline personnel so they can get a better understanding of what timeframes we should require our customers to abide by in regards to reporting unauthorized, altered, forged and counterfeit items.

“Your Duty to Report Unauthorized Signatures, Alterations and Forgeries. You must examine your statement of account with “reasonable promptness”. If you discover (or reasonably should have discovered) any unauthorized signatures or alterations, you must promptly notify us of the relevant facts. As between you and us, if you fail to do either of these duties, you will have to either share the loss with us, or bear the loss entirely yourself (depending on whether we used ordinary care and, if not, whether we substantially contributed to the loss). The loss could be not only with respect to items on the statement but other items with unauthorized signatures or alterations by the same wrongdoer.”

You agree that the time you have to examine your statement and report to us will depend on the circumstances, but will not, in any circumstance, exceed a total of 30 days from when the statement is first sent or made available to you. “

MY QUESTION - Does this mean that the customer has 30 days from when the statement is first sent or made available to them to report (a) an initial forgery (b) Any other forgeries by the same forger appearing on the statement and (c) any forgeries by the same forger that occur before the end of the 30 day period? What if they report this past the 30 days but before the 60 days referenced below?

“You further agree that if you fail to report any unauthorized signatures, alterations or forgeries in your account within 60 days of when we first send or make the statement available, you cannot assert a claim against us on any items in that statement, and as between you and us the loss will be entirely yours. This 60-day limitation is without regard to whether we used ordinary care. The limitation in this paragraph is in addition to that contained in the first paragraph of this section.”

MY QUESTION- I’m not sure what this section is conveying. Does this mean that the error the customer is reporting must have occurred within the prior 60 days? Please clarify so I can distinct between the 30 and 60 day timeframes.

You are referencing your legal contract with your customer. The only opinion as to what this language means and whether it is even enforceable in the State of Florida is the one that needs to be provided to you by your own legal counsel.

OK, Thanks.