Duplicate item returned

Posted By: Hogfan5

Duplicate item returned - 07/23/21 02:07 PM

A customer deposited a check on May 11. It was returned on May 14 as a duplicate item. We have the original and there is no notification on the bank of a mobile deposit. It was my assumption that if there isn't a mobile deposit endorsement, the bank with the actual item won the battle for the funds.

I am just now hearing about this so I am worried even if we should be the bank that gets the funds, we have missed any deadlines to dispute the return item.

Any help would be appreciated.
Posted By: John Burnett

Re: Duplicate item returned - 07/28/21 07:01 PM

the bank with the actual item won the battle for the funds.

The problem here is you didn't go to battle, and you may have missed your chance. This isn't an automatic claim -- you have to realize you have a claim and then join the battle to win your claim. You may have sat this one out too long.

You can try, but a lot of time has passed. Look at Regulation CC section 229.34, paragraphs 34(f), 34(i) and 34(k).

In May, when you got the return, you should have tried to identify which bank took the check in a mobile deposit. Of course there is nothing on the check you got back to identify that other bank -- you have to contact the paying bank and ask for its help to identify the other bank. You can even ask them for a legible copy of the reverse of the check (they don't have to provide it, but a sympathetic bank might do it). That gives you the info you need to be able to enter an indemnity claim under 34(f) against that other bank.
Posted By: John Burnett

Re: Duplicate item returned - 07/28/21 07:06 PM

I hasten to add here that you are only entitled to file an indemnity claim if you sustain a loss, and you only sustain a loss under these circumstances if you have first attempted, unsuccessfully, to recover the funds from your depositor.
Posted By: madukes

Re: Duplicate item returned - 07/29/21 08:12 PM

If you received the item as a return from the fed, you can file a WIC claim up to 90 calendar days from the date of the PAID/returned item provided you've suffered a loss. The form and instructions are under frbservices.org.
Posted By: John Burnett

Re: Duplicate item returned - 08/24/21 05:56 PM

Be aware that whether you go direct with an indemnity claim or use a WIC claim via the Fed, you will first need assistance from the paying bank to identify the RDC bank that deposited the RDC item and that has not received the item back as a return item. Ideally, you'll work with someone at the paying bank that knows what you need and can get it to you.