A check deposited at our bank on Nov 2, 2012 was returned to us for a cash letter dated Jan 25th for unauthorized signer (stolen). We returned it for lateness but have received it back from the Payor bank with a signed affidavit of Alteration. It is not altered, it is a stolen check. We want to send it back to bank without entry. Can we?
My bank took a check for deposit that was returned Altered Check within the 24 hour deadline. The question then arose, "What would our liability be?" Say the drawee bank did not return it timely. Their client has 30 days from the date of the statement showing its payment to notify them. The bank then has 30 days to submit a claim to my bank. Is my bank obligated to pay this money back?
What is the time frame to return a check for fraud?
A customer presented a personal check for deposit from an account that they own at another financial institution ("New Bank"). The"New Bank" bought another bank ("Old Bank") about four years ago. This customer appears to have retained their check stock from the "Old Bank", but they have made paper copies of the "New Bank's" logo, as well as the MICR line containing the "New Bank's" routing and transit number, and the customer's "New" account number. The customer has carefully cut out the paper copy of "New Bank's" information, and glued it on to their "Old Bank" check stock, aligning the logo and MICR information, as they would have naturally appeared on properly printed check stock. The alteration is more than obvious (imagine: white copy paper glued onto a "fashion check" with the image of a moose wading in a creek). We were able to verify that the customer does own the account at "New Bank", and the customer is in good standing with both our institution and the "New Bank". On our end, the Check 21 check image is acceptable despite the glaring alteration, so the check will be processed and paid without incident. (We know this because our tellers have apparently accepted these in the past without pause). It really appears that this customer is just being extremely frugal or environmentally friendly in wanting to use her check stock from the "Old Bank". Is this right? Is it true that a negotiable instrument could be written on almost anything? Is it simply up to the willingness of the financial institution to accept it?
One of our banks has a business account on which a check has been materially altered. The payee has been changed. There are no funds available at the depository bank. Is our bank liable for this item or can we claim "breach of warranty" to the other bank and recover the funds. The check is for $35,000.
Is it okay to take in a check for deposit that is missing the written amount? It has the numeric amount, but the written amount is missing.
A gives B a check and B deposits it into his account at his bank. Forty-five days later A's bank asks for the money back from B's bank. There are no affidavits of forged signature, forged endorsement, alteration or anything else. A's bank executes an indemnity agreement in favor of B's bank. B's bank returns the funds to A's bank creating an overdraft in B's checking account. Is this standard practice/procedure?
We have a customer who is claiming a forged signature on her account from January 2005. Are we liable for that far back? What happens if when we look at the checks, we think the signature is accurate, but the customer doesn't? Who wins and what are our obligations then?
What is the time frame that a customer has to report "check fraud" (forged signature or endorsement) on an account (consumer or business) to be reimbursed by the financial institution?
Forgery & Altered Documents?Part V
By Dana Turner
Document Alteration Techniques?continued