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?
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.
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?
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?
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?
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?
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?
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?
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?
I have a question about check endorsements. For example, assume a check is made payable to John Doe. Mary Doe brings in check to cash and endorses it
John Doe by Mary Doe. John Doe doesn't appear to be our customer. We have no way of knowing if Mary Doe has authority to sign for John Doe. Should this
check have been cashed?
We were notified by a customer on September 27, 2019 that there are 72 POS debits totaling $1,373.01 from PlayStation on her account that she did not
authorize. Since Visa will only allow us to go back 120 days for disputes, how much of these transactions is the bank responsible to refund to the