Does the UCC allow a bank to dishonor a cashier's check if the remitter asserts that the payment was for fraudulent activities? Our customer purchased a CC and mailed it to a company that is being investigated for running a pyramid scheme. It is not lost, stolen or destroyed. It is our customer's claim that payment was for illegal activities. I did not see a provision in UCC 3 or UCC 4 that gave us the ability to dishonor the check and refund the amount of the check to the customer, but I wanted verification.
I know you can't pull a ChexSystems on a signer on a business acct. The signer is not a owner. Question is if you know the signer has had problems at your bank, can you refuse to let them be a signer on the business account? What kind of notice of action taken do you use, since you can't use the ChexSystems.
When a garnishment is received on a former employee whose wages were being garnished, can funds be removed from the former employees account or do we wait for the HR department to answer with the termination information and then wait for the garnishment to be re-issued?
Does a hold notice have to be given to the customer before they leave the bank?
If a bank has an employee overdraft policy where each employee is allowed (3) overdrafts annually with no fee charged, does this policy also apply to Executive Officers and Directors? Or even if there is an employee plan, paying an OD item and not charging for an overdraft for an EO or Director would be a violation of Reg O?
A Credit Union employee made an error on an ACH deposit 4 years ago and the error was discovered last week. Can the CU force the customer to sign a promissory note and repayment plan? It was for over $50k and the money was spent. What is the stature of limitation to force repayment?
I have recently been told by our President that in addition to reviewing employee accounts, he is reviewing all relatives--children, grandchildren, boyfriends etc. I don't have any ownership in my grown children's accounts. I feel this is beyond the scope of monitoring for unusual activity, and I don't think my 40yr old kids would appreciate all their deposits/checks being reviewed on a monthly basis.
We are looking for a vendor to conduct employee background checks. Do you have a company that you can refer?
We have a customer that sends her grandson to purchase money orders for her. Should a personal money order leave the bank without the customers signature? Can a bank employee sign for the customer or type the customers name in?
We are looking at using social networking for our bank. What are some risks to evaluate?