A check was written by one of our customers to a third party, which was deposited. The check was stamped with a "Guaranteed Amount $XX.XX, BankName". The "guaranteed" amount is more than the amount on the check. The amount written on the check is legible and clearly not equal to the "guaranteed" amount.

Is the depositing bank liable for the difference since they "guaranteed" the amount? We already spoke to our customer and she had zero interaction with the third party or the depositing bank regarding the amount of the check. Has anyone ever come across this before? Thanks in advance for your thoughts!

a BOFD can't alter the written amount on a check...

when you recieived the check in to your bank for processing, what amount were you charged? The written amount or the guaranteed amount?

The check was encoded for (and the customer was charged) the higher ("guaranteed"), incorrect amount.

The BOFD warrants the encoding and is liable to your bank for the amount by which the encoded amount exceeds the enforceable amount of the check. If there is a difference between the amount your customer inserted in numerals in the so-called courtesy amount field and the amount written out in words, the amount in words is the legally enforceable amount of the check.

The "guaranteed amount" legend is superfluous, but adds more weight to the responsibility of the BOFD for the error.

Thanks John! The amount in numerals and in words matches exactly, and is definitely less than the amount that was "guaranteed" by the BOFD.

Do you think we could return the check?

Nope. It's beyond your midnight deadline. But you do have a warranty claim under the UCC. If you're getting your cash letters via the Fed, consult the Fed's Check Adjustments Handbook for how you'd go about submitting an encoding claim. Otherwise, you're going to have to submit a claim without entry, bank to bank.