Timely Customer Reimbursement

Posted By: Anonymous

Timely Customer Reimbursement - 11/17/03 06:02 PM

At what point does a bank have to reimburse its customer for forged checks? We have a customer that had their checks stolen, the customer did not realize their checkbook was missing, and a large sum of forged checks were cashed at our bank. Due to some questions I have about the entire situation (as in, why, when the customer reported the forgeries to us, did they stop ???), I am hesitant to reimburse the customer until the Police have had a chance to conduct a full investigation into the stolen/forged checks. What does your bank do ???
Posted By: RBanker

Re: Timely Customer Reimbursement - 11/17/03 06:24 PM

At our bank, we would follow these steps:
Have customer complete an affadavit of forgery - Make sure that items in question fall within your review timeline.
Do your own research - do signatures match or not? Check video, if available. Interview tellers.
If a true forgery - inform customer that you will refund funds and proceed by involving local police.
Determine if you have a suspect - sometimes a good video/DVR image will allow customer to help you identify who presented the forgeries - it always makes it more interesting if it is one of their family members.
If customer is adamant about bank refunding monies, make sure that they are aware that you will be filing charges with local PD and an arrest may be forthcoming.

Part of your interview may include asking where they think the suspect might have gotten a hold of the checks - if the customer was negligent in securing these items, they might share some responsibility. This is something that you might want to discuss with bank legal counsel.
Posted By: Dana Turner

Re: Timely Customer Reimbursement - 11/25/03 07:06 PM


In addition to requiring that the victim complete the affidavit of forgery, always require that the person file a theft/forgery report with the local law enforcement agency before you take any action. It's one thing to lie to you -- it's another thing to commit perjury by filing a false police report.