09/19/2021
If a customer wants to write a check in U.S. funds on a Canadian check, will writing “U.S. funds” on the check instruct everyone involved in the clearing process to process the check in U.S. funds, not Canadian funds?
10/18/2020
A client has a check made out to his trust. He endorsed it to himself and deposited it into his personal account. He has more than sufficient cash and credit to support the amount if a bad endorsement was claimed and we have no issue giving him credit. Are we at any increased risk by depositing that check?
06/07/2020
Is it legal for a customer of a bank to use a copy of a check (not the original because they never actually have it) to scan for Remote Deposit Capture?
For example:
Customer has their client send a copy of the orginal check to them with the proper endorsement on the back. This could be via an email attachment. Customer scans the check copy, front and back, into the RDC program for deposit into their account. Customer never actually receives the original check but now has credit for it.
05/17/2020
Are banks able to accept checks for deposit or cashing that have no payee written on the payee line? What is the risk behind accepting these checks?
05/10/2020
We have seen customers commit fraud by using remote deposit capture to deposit the same check at multiple banks, by using the same image of the check front but different check backs in order to use multiple restrictive endorsements. Under Reg CC or the UCC, what is the best way to argue against another bank that their claim is legitimate and ours isn’t? Both banks have an image with their restrictive endorsement, and theoretically the captures could have been made within a short amount of time. How can we defend ourselves from being left holding the bag?
04/19/2020
We have an item that was returned with the incorrect return reason code. It was returned as a forgery but should have been an endorsement. The item is payable to a business and endorsed by an individual. The payee claims to have not received the item in the mail. We received the item back as a late return claim. Can we return the item again for the correct return reason? What is the time frame for an improper endorsement?
02/23/2020
I own a check cashing business. Our industry is faced with an epidemic of returns for duplicate presentments where a payee will deposit an image of their check (using their phone app), then bring the original to the check casher. The check casher takes custody of the check and gives cash to the payee. The check casher then deposits the check to its own account via remote deposit capture (RDC) - this is standard practice today. Keep in mind, the original check remains in possession of the check casher and does not physically go to the bank. Sometime later, the check casher gets a duplicate presentment return because the image deposited by the payee's phone app was first in time.
Now, per Check 21, the check casher's bank is the depository and is a warranty recipient entitled to enforce the warranty against the payee's bank so long as the depository (1) sustains a loss and (2) takes the original. Two part question: If the check casher's bank does not take a loss because the check casher itself covers the return, is the bank still able to enforce the warranty? And since the check casher is using RDC, even though it retains custody of the original check, is the bank able to enforce the warranty?
01/12/2020
Are there any risks for a financial institution if we accept a check from a client for deposit to their savings account and the check is payable to our
financial institution, instead of making it payable to the account holder?
01/05/2020
Our customer mobile deposited a check with their signature endorsement along with a restrictive endorsement of "mobile deposit only [FI name] [date]".
The customer then scratched/crossed out the restrictive endorsement and negotiated the item a second time. We were charged back on the mobile
deposit. I understand we did not process the paper check, however the restrictive endorsement was on the mobile deposit and later scratched out.
Do we have any recourse back to the second bank to recover funds?
12/29/2019
If a person is deceased, can we deposit a check made out to that persons Trust in one of his other accounts that is in a joint name with the deceased
and the successor trustee of his trust, or how does this item get cashed?
