Returning Unauthorized Remote Checks Guidelines

If your bank receives an unauthorized remotely created check (URCC) from a Federal Reserve Bank, you can look to Section 20.10 (page 46) of Federal Reserve Bank Operating Circular No. 3 and their Check Adjustments Quick Reference Guide. You have 90 calendar days from the date of the cash letter in which you received the URCC. If you miss the 90-day deadline or if you receive an URCC from another source and cannot use the Fed's adjustment procedures, you have up to a year to enter a claim directly against the depositary bank or to pursue legal action if the depositary institution refuses your claim without justification. Don't delay once you are aware of the warranty claim, though. Any delay longer than 30 days might reduce the depositary bank's liability to you under the warranty provision. The warranty provision for remotely created checks is found in Reg CC, Section 229.34(d).

First published on BankersOnline.com 2/11/08