Skip to content

Counterfeit Check from BOFD-Who Takes the Loss?

Answered by: 

My bank has received a counterfeit check from a depositing bank. Our customer called the day the check cleared his account and we returned the check to the Bank of First Deposit on the same day as reported. Who will take the loss on this item, the BOFD or my bank? And should we treat this as a fraud/ disputed item ?

If you met your original return deadline for returning the item to the bank of first deposit after presentment, they will take the loss. If you did not meet your return deadline, your bank is liable for paying the counterfeit item.

First published on 06/02/2019

Filed under: 
Filed under operations as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics