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Charge When Old Rebate Checks Hit Old Account

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We have a client that did business with a non-bank company to handle their "accounts". Our client does "campaign" accounts for rebate programs for pharmacy drugs. They have closed many of the accounts with this old company but they still have rebate checks older than 6 months hitting their old account. The checks are returned, but this company is charging them for each return item fee. Is this legal? Does the UCC guidelines help them in any way with the 6 month "stale date" definition OR can this non-financial company continue to charge them every time an old rebate checks tries to hit an old account?

The liability for returned items, and any fees associated with them, would be stated in the contract between your client and the company. Don't try to involve the bank in a dispute between these two parties, and don't try to provide legal advice for your customer.

First published on 4/23/12

First published on 04/23/2012

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