I have a customer who had a check clear in December 2013 and the payee is claiming they did not receive it. I've sent a SOR (source of receipt) through FED to find where the check was negotiated, but what other options do I have in regards to returning the check?
Is there a time limitation on correcting encoding errors on customer accounts?
We are in a spitting match with another bank over some forged checks. We accepted them and sent them for payment to the other bank back in January. Over a month later, the bank returned them - one was stamped NSF, the other two had no reason, so we called and the bank faxed us forgery affidavits. From day 1 of my banking career, I have been taught that the paying bank eats forgeries, so we returned them as late returns. Then we got a letter from the bank demanding payment saying we had breached the transfer warranties (since there were forged signatures). We replied you are outside of your timeframe for breach of warranty and besides, we are holder in due course and you can't demand payment for forgeries from a holder. They replied since you knew they were forgeries, you were on notice of the breach of transfer warranty therefore we are within the timeframe. Neither one of us is giving in, but I can see where they are getting the breach of transfer warranty, which seems to be a contradiction to the holder in due course defense against forgery. So can we/how do we counter their argument of the breach of transfer warranty?
We have had instances where customers have filed debit card disputes after a merchant charged them twice for the same item. In most cases, the customer informs us that the merchant swiped the card and received a denied message and then swiped the card a second time and the authorization cleared. The customer then finds that the first authorization also cleared and they are then debited twice, but the merchant claims they only received payment once. Does the Bank always lose in this instance? Can we keep $50 from the customer due to liability?
What is the bank's liability when a customer claims a check that cleared their account is unauthorized, but due to the check design, the bank's image of the check does not show the customer's signature? (i.e. the design on the check just scanned black, covering up the signature). I know we could request the actual item from the depositing bank, but there is no set time that banks have to keep the actual check, and most probably destroy them within 30-60 days. If the customer doesn't report the unauthorized item before the actual check is destroyed, we would have no way to know whose signature was on the check. How would the customer sign an affidavit of forged signature if they can't even see the signature on the check?
The bank has a customer who is on his 4th debit card. The customer's niece lives with him, and has used his card in the past. The customer disputes the charges each time stating the charges are fraudulent and he did not authorize. When the 3rd card was ordered, the customer requested the niece pick up the card and PIN number from the bank. The branch complied (though should not have) and of course, the niece used the card to purchase tires at Walmart. The customer now wants to dispute this charge. Can we deny the claim because the customer authorized the niece be given possession of the card? He has been informed he will not be issued another debit card if this continues with the 4th card issued to him.
We have an item from a Canadian Bank that is payable in U.S. funds through an American bank. There is no indication on this item that it is a cashier's check. Stamped verbiage on the back of the item says "DRAFT VOID IF NOT PROTECTOGRAPHED ON FRONT." When we contacted the Canadian bank, we were told the item is a cashier's check. Is there any law or regulation that stipulates items must be identified as a cashier's check so we don't run the risk of a Reg. CC violation?
I am trying to find classes or training to get the most complete information on doing PIN-based disputes. Please tell me where to look.
We have a customer claiming they did not receive the correct amount from a foreign ATM. She claims she was charged $200 but only received $100 which is what she says she requested. Of course, she did not save her receipt. We contacted the bank and they say their ATM shows a withdrawal of $200 was requested and dispensed. They did not have a difference. The bank referred the customer to us to complete a dispute form. Do we have to give a provisional credit? If the bank says they cannot find an error are we liable for the $100?
We have an IRA for a recently deceased customer with a minor child (7 years) as beneficiary. We make the check payable to the child? Can the parent in turn endorse Jane Doe, Monor - Jill Doe legal guardian transact? How do we make sure Jill is the legal guardian? I'm thinking of an indemnification similar to parent transacting on redeeming bonds.