We have a customer that made a deposit into a U.S. Bank ATM in July 2002. They claim that their account was never credited with the deposit because the envelope got jammed/stuck into the ATM and the transaction wasn't completed. We are trying to work with U.S. Bank on this matter and one of their employees told our Assistant Cashier that she can't do anything about it since it has been over 120 days from the date of the transaction. I am trying to locate the regulation that states this. Can anyone help?

It would not be a regulation, this scenario would be covered by the agreement/contract between you and U.S. Bank. Did the customer receive a receipt for the deposit - if yes, U.S. Bank got the deposit, if not the transaction was not complete and there is no liability.

When did the customer first approach you and tell you there was a problem. If you are just now contacting USB, I can understand their answer. Normally a customer has to call errors to your attention within 60 days of receiving a statement. What where they trying to deposit? It may be more expediate to go the maker of the check they deposited and get a copy from them. If they say it was never processed then have them reissue it. If it was cash - good luck.......

How do they know the deposit got jammed in the machine? If jammed the machine has to be unjammed which would have resulted in at least some recovery of the deposit.