05/26/2014
Is there any course of action the Bank can take to help a customer who notified us 6 months after 3 fraudulent checks totaling over $2400 were debited from their account?
06/10/2013
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?
06/10/2013
My bank follows a rule that we do not accept checks endorsed For Deposit Only or Pay to the Order of [a third party]. Can you direct me to the guidance on this, please?
06/03/2013
I found this good information about forged endorsements on your site; however, I am wondering what the drawee bank liability would be if they don't return a check that has no endorsement at all? As a matter of law, a drawee bank does not have a duty to conduct any review of payee endorsements on checks received from a depository bank. Under the UCC, a check bearing a forged endorsement is not properly payable (Revised UCC . 4-401). If the drawee bank pays a check bearing a forged endorsement, then it is obligated to recredit the drawer account for the item.
04/29/2013
We have a joint checking account that was opened by a husband and wife. The husband and wife agreed that the purpose of this account would be to pay joint bills. They ordered checks requiring two signatures, however, the account was not set up as a dual signature account. (The signature card that is signed by both parties makes no mention of a dual signature requirement.) Couple is now going through a divorce and the wife forged husband's name on two of the checks totalling $7000.00. Husband is now asking the bank what his recourse is. I have told him that it is an issue he needs to work out with his wife because the signature card does not require two signatures. Does he have grounds for a formal forgery claim against the bank?
10/01/2012
What options for receiving a return credit does the bank I work for have if our customer reported a counterfeit check a few days after it posted to their account? The counterfeit check was a large dollar amount payable to an individual and then endorsed to a business. We have submitted a claim with the bank that accepted the deposit but I am worried that we will not get our credit back.
08/06/2012
If a business client presents a forged check to our bank after reviewing their bank statement and we return it to the bank of first deposit that day but now 28 days after it was honored at that bank, are we timely and will that bank remain liable? If not, are we liable to our customer when they have followed our customer disclosures regarding such forged or altered items?
07/23/2012
After reviewing his bank statement in a timely manner, a customer notified us of two forged checks that he discovered were stolen from him. Both of the checks were deposited at another institution and sent to us through a cash letter. What is the bank's liability in this situation? We paid the checks in good faith and with ordinary care. After the customer notified us, we did look at the signature on the checks and it is different from the signature card.
02/06/2012
Once our customer signs an Affidavit of Forgery for a forgery item (regardless of being with the 24 hr return window) are we required to credit their account immediately or can we attempt to return and credit if and when we receive funds?
01/23/2012
We have an account where someone has been forging checks and cashing them. What is the liability of the bank? Is there a time frame where the customer is just out of luck?