Thread Options Tools
#203702 - 06/23/04 10:11 PM Return of Fraudulent EFT Money
Anonymous
Unregistered

We have had a couple of situations where a "victim" has gone to their bank after the 60 day time frame to dispute an EFT. Their bank advises them they are past time frames to dispute the transaction, but Bank A received the funds and you should call them to get your money back. Are we obligated to cause our bank a greater loss and return the money or can we advise they we late in filing their claim so we do not need to honor either? They are not a customer of our bank.

Return to Top
General Discussion
#203703 - 06/24/04 01:32 PM Re: Return of Fraudulent EFT Money
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,246
On the Net
I am confused over the wording of the question.
Quote:

...after the 60 day time frame to dispute an EFT. Their bank advises them they are past time frames to dispute the transaction...


What type of transaction is this. Under Reg. E the time frame of notice isn't going to effect the liability in that if the bank couldn't have stopped the transactions, say it all happened in one ATM withdrawal, the customer has $50-$500. My point is there is a misconception that after 60 days the customer has unlimited liability. They do, but only for those transactions after the 60 days.
Quote:

Are we obligated to cause our bank a greater loss and return the money


Where is your loss in this?

I don't think you have to go out of your way to give someone else money, but at the end of the day you can ask yourself what is the right thing to do.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

Return to Top
#203704 - 06/24/04 03:52 PM Re: Return of Fraudulent EFT Money
Anonymous
Unregistered

Here is the situation - Bookeeper makes unauthorized EFT payments from their checking account with a different bank to pay off a line of credit with our bank. Employer does not discover these unauthorized EFT payments for 6-9 months after the fact. The employer disputes the EFTs with his bank, but is advised they cannot/will not do anything because it is past 60 days for the notification and he was negligent in not reviewing his bank statements, but also advises my bank received the funds and he should ask us for the money. The employor has come back to us advising the EFT payments were made fraudulenty and we should not have accepted them and he wants all payments returned back to him. Our loss is from the bookeeper abusing the line of credit, which we took as fraud. If we provide the money back to the employer, our loss increases.

Return to Top
#203705 - 06/25/04 04:23 AM Re: Return of Fraudulent EFT Money
Princess Romeo Offline

Power Poster
Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
If you are talking about a business account, you need to keep in mind that Regulation E does not cover business accounts.

The EFT transactions fall under NACHA rules (and I suppose any UCC rules), but the Reg E allowance for claiming unauthorized payment does not apply.
_________________________
CRCM,CAMS
Regulations are a poor substitute for ethics.
Just sayin'

Return to Top