07/01/2001
Question: I just read the first question in your Questions & Answers section of Volume XI, Number 5 of your newsletter.
07/01/2001
Question: If we get a check from one of our customers that they got back in their statement, and they say the endorsement is forged, what is the bank's responsibility to our custom
06/04/2001
I have a customer who paid a vendor with a check dated 6/29/99. The vendor said they never received the check. It was deposited into a Nations Bank account with a Credit to the Within Named Payee stamp. The vendor said his bank is Bank of America. What is the time limit for the return of the item to the bank of first deposit?
06/04/2001
A customer presented a US Treasury check (tax refund check) payable to her minor child. The mother wanted toendorse and deposit the item into her account. In this type of situation, is it o.k. to perform this transaction? Are there any repercussions?
06/04/2001
One of our customer made out a check with no payee. The intended recipient claims non receipt. The check was deposited with no endorsement. The bank of first deposit returned our request of Forged Endorsement as "Same as cash". Who is liable for payment?
05/07/2001
We have knowledge that a customer deposited a State check for a "friend" with a forged endorsement. The State received a copy of the stolen check from us since we were the bank of deposit. We debited our customer's account and credited a suspense account, pending a request from the State for the money. Our dilemma is where do we keep the money? Suspense...We are required to clear this account within 30 days.--Put a hold on the account...Are we violating Reg CC for an indefinite time frame?
05/07/2001
In one of your articles I read that it is not sufficient to deposit a IRS refund check payable to a husband and wife without both endorsements If the account is title jointly, can the Treasury Department return the item if it is stamped "For credit to the account of the within named payee. Absence of endorsement guaranteed." ?
01/15/2001
We accepted a check for deposit back in February. The check was charged to our corespondent account this month. When we originally deposited this item with our corespondent in February out bank endorsement was missing and when the paying bank did not honor it they couldn't figure out the bank of first deposit, so they sent it to our corespondent. The corespondent sent it back to the paying bank. This went on 5 times. Finally the corespondent ended up with the item in May and has been sitting on it ever since. They finally figured out it was presented by us and charged it back. The problem now is the payor account is closed (since March) and the deposit account at our bank is closed. What recourse do we have after 10 months?
01/15/2001
We frequently have customers who wait 6 months to report forgeries. Our procedure has been to return the item at that time to the depositary bank. (We normally give the customer a refund) It is my understanding that we must return items according to Reg. CC, and this is much too late. Please tell me what we should be doing when this happens? I am new to compliance, but this does not seem like the correct way to handle forgeries. Our deposit agreement states that the customer should examine their statement within 30 days. I know that the customer has one year to report a forgery and three years to report a forged endorsement.
01/15/2001
What are most bank's policies on cashing on-us checks payable to "Cash" for non-customers?