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#496277 - 02/09/06 07:08 PM Check Forgery
jjames Offline
Member
Joined: May 2005
Posts: 51
A customer's live-in girlfriend has forged his name on several checks. The checks date back for about a year. Eight months ago our director or deposits noticed that his account was frequently overdrawn, which is unusual for this customer, so she spoke with him about it and asked him to monitor his statements (which apparently according to him he doesn't typcically do). We also put an alert message on his account to notfiy tellers in the event that she came in with a check. Well, apparently, now he has become upset with his girlfriend and wants the bank to refund his money. The director of deposits wants to give him a refund, but I think this is a case of customer negligence. Any suggestions as to regulation that would require/not require us to provide him with a refund? Thanks in advance for your help.

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Deposits and Payments
#496278 - 02/09/06 07:15 PM Re: Check Forgery
Chiquita Banana Offline
Diamond Poster
Chiquita Banana
Joined: Jun 2002
Posts: 1,044
The banana bin
First, check your deposit agreement. It might have language in it that requires the depositor to check monthly statements and notify the bank of any errors within 30 days.

It doesn't necessarily stop the claim as some state's UCC laws state that a depositor has up to a year. But there are also other provisions in the UCC that adds neglect to be the liability of the customer.

Considering that he wasn't upset about it until he was upset about the girlfriend would make me say, "Nice try." I would also ask him why he didn't report it sooner. If he says that he didn't check his bank statements...well...that ends that as he didn't follow the deposit agreements.

I say that if they happened that long ago, you don't owe him a thing.
_________________________
My opinions are definately my own. I could be wrong. But I don't think so.

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#496279 - 02/09/06 07:24 PM Re: Check Forgery
jjames Offline
Member
Joined: May 2005
Posts: 51
Thank you so much for your help. The language is in our agreement so we are in good shape. Thanks again!

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#496280 - 02/09/06 07:34 PM Re: Check Forgery
Chiquita Banana Offline
Diamond Poster
Chiquita Banana
Joined: Jun 2002
Posts: 1,044
The banana bin
Just keep in mind that if the customer can prove extenuating circumstances, then he has a legitimate beef (I had a guy who was in the hospital after a car accident). But this one? Nah, if it was ok 8 months ago, then it's ok now. Can't pick and choose.
_________________________
My opinions are definately my own. I could be wrong. But I don't think so.

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