Local library just found that they had a fraudulent check created on their account in December. Notified us in February. The payor's signature on the front was "imaged" and looked legitimate so there is no way we would have known. We tried returning as fraudulent in February but of course they countered with "late return". Are we on the hook for this $15,000 check? Or the bank whose customer cashed it? Since the consumer is king, I doubt the library/victim is responsible - and not sure we want the bad PR of making them take the hit. We are a community bank and BOD is Chase - so I'm not very hopeful. Our correspondent said to fill out a form to release them & Fed from it so we can deal directly with Chanse. Anyone have any insight? Experience? thanks.
Our terms and conditions states that we aren't liable if we use normal banking practices and when looking at the check, it doesn't raise suspicion.
Last edited by T42; 03/02/23 07:27 PM.
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