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Returning Fraud Check-Forgery Affidavit Timing

Answered by: 
John Burnett

Question: 
Before returning a fraudulent check for any type of forgery, we require the completed forgery affidavit to be scanned to the Operations department before the check is returned, and the original follows later. Do you agree with this requirement, or do you think the check should be returned before getting the affidavit?
Answer: 

If you are aiming for the midnight deadline and don't have a forgery affidavit yet, return the check for a different reason that doesn't require the customer's affidavit. Code L - Signature irregular is a likely candidate. Making that midnight deadline means you retain control and don't have to rely on the depositary bank's response to a bank-to-bank "without entry" warranty claim.

If you've missed the midnight deadline, wait for the affidavit and use the without entry warranty claim route.

First published on 11/19/2017

Filed under: 
Operations
Filed under operations as: 
Checks
Forgery

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