10/09/2022
A customer with charged off loans came in with a check drawn on another customer of this bank. The check had sufficient funds to cover the check. Since the payee of the check had charged off loans, are we required to cash the check?
01/02/2022
We had a customer who filed a counterfeit affidavit of forgery in June for an item which cleared in May. The customer notified us beyond 28 days and but within 60 days. We had to deal direct with the other bank (Chase). Since the customer notified us within 60 days does this mean we take the loss, or can we wait for the other bank to respond? If we can wait, how long does the other bank have to respond to our request?
12/12/2021
When mailing a chargeback to a customer, is it required to include a brochure explaining Check 21? We give out disclosures at account opening explaining Check 21 and since it's been in place since 2004 do we really need to send one with every chargeback?
10/24/2021
Our business customer (#1) wrote a check to another business (#2) for services rendered. #2 claims that they never received the funds and #1 filed an affidavit of forged endorsement with us. The claim was sent to a large nationwide bank (LNB) where the check was negotiated, in a town located in the same state as #2. The account was opened at LNB using the same established address as #2. We don't know when or if this particular check was part of opening funds.
LNB denied our claim due to the established account using #2's business identity. Evidence from LNB indicates the account was overdrawn at some point and then closed by LNB. Do we have the right to then chargeback the funds to our Customer #1; or is LNB required to refund the funds to our bank, based on the claim of forged endorsement by our customer #1?
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?
