We had one of our customers notify us on May 2nd that they had a fraudulent check pay to their account on April 4th. We returned the check the same day of notification, May 2nd and now have received a late return claim. Is it correct to say that we are out the money and have to pursue the forger or do we have any recourse since we returned it the same day of notification and customer notified us within the allowable error resolution time frame?

You had up to midnight of the next business day after presentment to return the check. Not when you were notified by the customer.

Ok, that's what I thought I was reading but other bank employees are arguing different. Thanks!

The midnight deadline has been around since before the Uniform Commercial Code. I am amazed at the banks that do not teach their employees how it works.

but if they did, you and Randy would be out of work!

If only! There are way too many other interesting questions to ponder in these forums than the midnight deadline.