Does an online bank (such as Ally Bank or go2bank) have to provide customers with an Image Replacement Document (IRD) when checks deposited via mobile Remote Deposit Capture (mRDC) are returned?
If no, does it then become the responsibility of the payee to work with the maker of the check to recoup the funds?
One of our official checks cleared twice. A nonmember walked the paper check into the branch to be cashed and completed the full endorsement on the back of the item. Later that same day, we received the item again in our daily check processing batch. That one looks to be taken in by the other bank as an RDC, however there is not one thing written on the back of their image - no signature, no "for mobile deposit" check mark, no "for mobile deposit only" written - nothing.
We did not find this duplicate until we reconciled the monthly register for official checks. Do we have any claim to recover the funds from the bank that ran the RDC without any sort of endorsement? We hold the paper item.
Are credit unions or banks required to verify financials before setting up a business for online wire origination or RDC services?
Is it legal for a customer of a bank to use a copy of a check (not the original because they never actually have it) to scan for Remote Deposit Capture?
Customer has their client send a copy of the orginal check to them with the proper endorsement on the back. This could be via an email attachment. Customer scans the check copy, front and back, into the RDC program for deposit into their account. Customer never actually receives the original check but now has credit for it.
I own a check cashing business. Our industry is faced with an epidemic of returns for duplicate presentments where a payee will deposit an image of their check (using their phone app), then bring the original to the check casher. The check casher takes custody of the check and gives cash to the payee. The check casher then deposits the check to its own account via remote deposit capture (RDC) - this is standard practice today. Keep in mind, the original check remains in possession of the check casher and does not physically go to the bank. Sometime later, the check casher gets a duplicate presentment return because the image deposited by the payee's phone app was first in time.
Now, per Check 21, the check casher's bank is the depository and is a warranty recipient entitled to enforce the warranty against the payee's bank so long as the depository (1) sustains a loss and (2) takes the original. Two part question: If the check casher's bank does not take a loss because the check casher itself covers the return, is the bank still able to enforce the warranty? And since the check casher is using RDC, even though it retains custody of the original check, is the bank able to enforce the warranty?
I'm implementing Remote Deposit Services in my bank. Our main and only customer will be a foreign bank. Basically, the foreign bank is my parent company. However, we are independent from them in terms of regulations applicability.
The foreign bank is not allowed to open US dollar accounts for their customers. Therefore, the foreign bank will purchase checks from their customers and each will be scanned through RDC. We will receive the images of the checks.
My question is: Does regulation CC apply to the foreign bank (which is my customer)?
Are deposits made on a mobile device covered under Regulation CC? If not, is it safe to say we can hold as long as we like?
We received a Fed adjustment for duplicate presentment (failure to secure) for an RDC item. The item was originally processed by our member RDC (blank endorsement) and paid in December 2017. The item was subsequently stolen from his home.
In January 2018 a second presentment was made via ATM and now includes a third party endorsement . The item was credited to the third party's account at the other financial institution of which the payee has no ownership.
Do I have any breach of warranty claim (presentment or transfer) against either the drawn on bank or the second presentment bank?
Are cell phone/mobile deposit are covered under Regulation CC?
Does the funds availability notice have to be on ATM deposit envelopes?