We had a customer that notified us of some counterfeit checks coming in. Some were able to be sent back but several had cleared 11 days before we were notified. Is the bank liable for the checks that were not able to be sent back? They have not received the statement for the month.

Unless the account agreement has a very unusual requirement that the customer has to examine checks before the statement is provided on which they are shown to have been paid (and it's been tried and tested in the courts), the bank is responsible to the customer for paying those items, which were not properly payable.

In most cases, you won't have any recourse against a depositary bank for those items, either.

I'm wondering how the "facsimile signature" clause in most account agreements plays into this scenario? If the counterfeit check(s) bear the same facsimile signature as the legitimate checks could the bank shift liability back onto the customer for the counterfeits? Just wondering....


Edited to ad a link to a court case that appears to answer the question:

Bank not liable for counterfeit checks with facsimile signature.

If the stamp was the same, I'd agree the bank could not have differentiated frauds from the legit regardless of when they were presented and only notice by the customer would clue the bank in. And since the deposit agreement shifts liability for these to the customer, it's on them. I certainly agree.

A true "facsimile" signature is one used and approved by the actual drawer of the check. It would be highly unlikely for any item accurately described as a "counterfeit" check to carry a facsimile signature.