We read that if a client claims there is fraud on a checks endorsement that the payee would sign the Affidavit of Forgery. Once we receive the Affidavit of Forgery signed by the payee is there anyway for our bank to return the check with a return code if it is within 3 years or must we follow the normal procedure to mail the Affidavit to the bank and wait to hear a response? The checks cleared our clients accounts, they were note deposited at our institution.

Endorsment claims must be handled without entry under your state's Uniform Commercial Code. Any attempt to return items through the Fed opens the door for the BOFD to reject the item as a late return and could jeopordize your ability to recover funds.