UCC time frames on fraudulent return item

Posted By: trout22

UCC time frames on fraudulent return item - 06/26/17 05:09 PM

We have a cm who suspects fraud on a check. They want us to process the check so that they can take a claim to the appropriate officials (police, FBI, whoever will take it). We could put a hold on it; we will try to call to confirm with the issuing bank once we have it in our possession; and of course we could just refuse the deposit - but we're trying to help out the customer. If we were to send it for collections, will we be absolved of any recourse if the item happens to be paid? Heard a rumor there were extended timeframes on returned items when the reason for return is fraud/fictitious item (possibly up to 3 yrs?!?).

Any advice? What would you do? (Other than refuse the deposit!!)
Posted By: rlcarey

Re: UCC time frames on fraudulent return item - 06/26/17 05:28 PM

Collection items are final when paid. But why get the bank involved? I have no idea what a "cm" might be, but you have no dog in this hunt.
Posted By: HappyGilmore

Re: UCC time frames on fraudulent return item - 06/26/17 05:29 PM

what is a cm?

and if you are notified in advance that an item is potentially fraudulent, why would you accept it for deposit and put the bank in the middle of this dispute? You don't put your bank at risk for loss in order to help a customer, at least in my opinion.
Posted By: trout22

Re: UCC time frames on fraudulent return item - 06/26/17 05:34 PM

Sorry, 'cm' shorthand for customer around here wink

I'm with y'all, I'd rather the Bank not be involved.

Thanks for the quick responses!