06/07/2020
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?
For example:
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.
02/23/2020
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?
06/09/2019
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)?
01/13/2019
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?
06/17/2018
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?
06/23/2014
Are cell phone/mobile deposit are covered under Regulation CC?
04/21/2014
Does the funds availability notice have to be on ATM deposit envelopes?
07/30/2012
Are Remote Deposit customers' deposits subject to Regulation CC requirements?
02/27/2012
Most of our customers are depositing checks remotely using a check scanner. We spot check deposits over a certain amount and have noticed occasionally some are made payable to multiple payees and they are not endorsed properly. We normally put a Reg CC hold on the deposit because most of the time the check is returned. We had one instance where the check was not returned and now the bank that issued the check is asking us for the funds back (6 months later) because of missing endorsements. We can't prevent the customer from depositing the check (unless we take the machine away), but what options do we have to get the other bank to return it, sooner than the 7 days?
07/19/2010
One of the tellers cashed a unemployment check that had been already paid via Digital Federal Credit Union. The customer first scanned the check from home and then came to my credit union with the original check and cashed it. This customer does not have an account with us, but has an account with Digital Credit Union. Now we are left holding the original check returned as already paid. I tried contacting Digital Credit Union, but I have not recieved any response. How can I resolve this? Does my credit union have to eat it or I can claim it from Digital?
