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#420404 - 09/08/05 08:37 PM Now what
Midwest Banker Offline
Gold Star
Joined: Nov 2004
Posts: 349
Cheeseland
Here's a new one, at least for me. A teller cashed a check for a customer, made payable to a business we have no relationship with. Now what? Of course we are liable to the business for the money, but can I charge back the money to our customer? Any help (quickly) would be appreciated.

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#420405 - 09/08/05 09:00 PM Re: Now what
grmasterb Offline
Diamond Poster
grmasterb
Joined: Feb 2004
Posts: 1,249
Indiana
Is the business a sole proprietorship? If so, is your customer the proprietor?

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#420406 - 09/08/05 09:07 PM Re: Now what
Midwest Banker Offline
Gold Star
Joined: Nov 2004
Posts: 349
Cheeseland
No, the business is an Incorporated Entity and has no relationship with our institution what so ever....

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#420407 - 09/08/05 09:22 PM Re: Now what
grmasterb Offline
Diamond Poster
grmasterb
Joined: Feb 2004
Posts: 1,249
Indiana
I'm shooting from the hip here, but my sense is that some teller training is in order. If the customer endorsed the check, they are assuming responsibility for it. That may be all you need to be able to chase after the customer for the funds. The business that is the actual payee will certainly argue that your customer was not in a capacity to negotiate items for the business, so they'll want the money.

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#420408 - 09/08/05 09:30 PM Re: Now what
Midwest Banker Offline
Gold Star
Joined: Nov 2004
Posts: 349
Cheeseland
Definately, the manager is going to deal with the teller and I am going to make sure the business gets their rightful money, but what recourse do I have in going after the customer (even though it was our employees error)? Can I debit the account for the funds she was not entitled too?

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#420409 - 09/08/05 09:45 PM Re: Now what
grmasterb Offline
Diamond Poster
grmasterb
Joined: Feb 2004
Posts: 1,249
Indiana
I would consult legal counsel on this. That said, the customer did endorse the check, which according to my reading of UCC means the customer assumes responsibility for the check's payment by the drawee bank. Most account agreements have a right-of-setoff clause, so this may provide you with the legal right to take the money from the customer's account. Good luck!

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#420410 - 09/11/05 06:08 PM Re: Now what
Don_Narup Offline

Power Poster
Joined: Jul 2001
Posts: 3,708
Las Vegas Nevada
Your customer cashed a check frauduantly, regardless of what the teller should or should not have done. You have every right to get your funds back.

Do you have the item to charge back? It doesn't sound like the maker has filed a fraud endorsement at their bank, and you have not received the check back.

If you have the item, charge it back to your customers account. After charge back give your customer the check and let them deal with the maker.
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