Fraudulent withdrawal from checking

Posted By: CSB98

Fraudulent withdrawal from checking - 07/28/21 02:12 PM

We have a customer claiming that a withdrawal from one of her checking accounts was forged. The person used a withdrawal slip to withdraw $100 from her account. The transaction happened 4/1/21 and she notified us on 7/27/21. Since this is past the 60 day notification timeframe are we required to make her whole with the transaction? We attempted to look at our security footage, but it doesn't go back that far.
Posted By: rlcarey

Re: Fraudulent withdrawal from checking - 07/28/21 02:29 PM

What does your depositor's agreement say about the time frame for reporting non-Regulation E errors?
Posted By: John_Burnett

Re: Fraudulent withdrawal from checking - 07/28/21 07:34 PM

How often does this customer get statements on the savings account, and when was the statement provided that shows the April 1 transaction?
Posted By: CSB98

Re: Fraudulent withdrawal from checking - 07/28/21 07:49 PM

I am double checking on this, but I believe it's actually 30 days from statement date instead of 60.
Posted By: CSB98

Re: Fraudulent withdrawal from checking - 07/28/21 07:50 PM

It is a checking account, so they are receiving monthly statements.
Posted By: rlcarey

Re: Fraudulent withdrawal from checking - 07/28/21 08:54 PM

You would have to modify the UCC provisions that govern this by agreement through your depositor's agreement, that is why it is very important to know exactly what it says. You can shorten the period but it has to be deemed reasonable.