I know this happens, but I'm not sure how to correct this. One of our customers wrote a check, the check has cleared. The issue is that the Payee claims to not have received it. The check is not endorsed but we know the BOFD. What steps do I need to take?

I have contacted the BOFD and everything is correct, for future reference I would like to know the proper procedures for BOFD's that aren't so willing to work with us. Thanks in advance!

Provide your customer with the front & back of the check. He provides the payee with evidence. The payee goes to his bank and resolves the problem of why he didn't get credit.

I disagree with ahou's advice. The payee will complete an affidavit of forged endorsement which he presents to the maker of the check and demands payment from the maker. The maker of the check presents the affidavit to the drawee bank (opschick's bank). The drawee bank makes a without entry claim against the BOFD and requests reimbursement due to the breach of presentment warranties.

Thank you!

There's no contradiction there. Ahou's suggestion is a good first step, but when the payee finds he didn't get credit (or realizes he didn't deposit it with the depositary bank because he does business elsewhere), Brian's steps kick in.

If the check isn't indorsed by the payee, the depositary bank provided a warranty under UCC 4-205, and the paying bank should throw in a warranty claim under that section of the UCC, along with the presentment and transfer warranties.