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#38248 - 10/22/02 04:51 PM Customer liability on stolen checks
Trigger Mike Offline
Joined: Oct 2002
Posts: 81
We had a customer call and express concern about opening a checking account because she said that she heard about a recently passed California law which states that customers can be liable for something like 20-30% of the amount in the event of a lost/stolen situation. Any guidance on what I can tell her as far as the law/regulations are concerned, and how much she could be liable for?

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#38249 - 10/29/02 04:42 PM Re: Customer liability on stolen checks
SJB Offline
Diamond Poster
Joined: Jun 2002
Posts: 1,210
I am not aware of any recent changes in this area.

Take a look at California's UCC section 4406 regarding customer liability for failure to notify the bank.
My opinions are not legal advice and are worth what you paid for them.

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