Our bank has several MSB check cashing customers. On occasion, an MSB customer will inadvertently cash an altered check, which eventually is deposited to their account at our bank. When our bank receives an affidavit of alteration from the paying bank, is it permissible to debit the MSB customer's account for the claim amount since they are the ones that "cashed" the check, or would our bank be responsible for paying the alteration claim?
My bank has received a counterfeit check from a depositing bank. Our customer called the day the check cleared his account and we returned the check to the Bank of First Deposit on the same day as reported.
Who will take the loss on this item, the BOFD or my bank? And should we treat this as a fraud/ disputed item ?
Can a check payable to to a business ( which does not have an account here) be converted to a cashier's check payable to the same business?
Should the owner of a sole proprietor business account cash checks made payable to him personally using the business account?
A check is payable to 4 people, 2 of the payees are our bank customers and have endorsed the back of the check. The other 2 payees came into our branch, signed and cashed the check. If by some chance this check is returned to our bank, who would be liable? We understood that it is always the last signer and the person who received the cash. Is this true?
An item was presented for cash at the bank. The handwriting and signature matched our customer's previous checks and signature card. However, the customer is now stating that they did not process this item and it is a forgery. What due diligence does the bank have to follow since we believe this is NOT a forgery but our customer trying to gain funds. The customer has completed and signed an affidavit of forgery. Does the bank have an obligation to give credit back to the customer without an investigation or police report filed? At what point is our customer liable?
A longtime customer came into the Bank and presented the teller with a check. The teller asked the customer about the check and she stated that she had received the check in the mail as part of her winning the Publisher's Clearing House. The letter instructed her to cash the check and submit a portion of the funds back to them while they finalized the issuance of the "large" winning check. This sounded strange to the teller who called a supervisor and through research found the check to be fraudulent. The supervisor retained the fraudulent check refusing to return it to the customer (fearing she would take it to another bank).
Does the bank have the right to retain the fraudulent check or should it have been returned to the customer, or should the check be destroyed and documented that such action was taken?
We have a customer that transfers money from his operating account to his tax account each month. His accountant has asked him to do this in check form for tracking. When he writes the check he puts his account number as the "Pay to the Order of" line. Is this acceptable?
Should a bank cash a check made payable to a corporation or any business?
If a commercial customer has an account with our bank, and he pays his employee who has a charged off account with us and owes us money, are we bound to cash the check for the party who owes us money, and not have him pay us what he owes us?