Scenario: A customer deposited a check on 10-31. On 11-5, our ops area received notice from the paying bank that the check was being returned. The item did not actually show up until 12-2. At that time, our ops area sent it back to the paying bank, claiming late return. The paying bank is now returning the check again, saying that we cannot claim late return because they did give us timely notice of the return.

My opinion is that the paying bank is right, because timely notice is required and was given. But before we charge this item back, I would like to get a second opinion. Any thoughts?

Without the actual presentment date on which the paying bank received the check it's hard to tell if 11-5 meets the notice timing requirement, but it would appear to be reasonable. I concur, the paying bank has met it's return requirements with the timely provision of the notice.