Handling Late Return Claims

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Question:

We need an advice for below situation. 1. Our customer cashed a check for $9,230 from another bank at one of our branches on 11/21/23. 2. On 11/27/23 we received a return for this item as Stop Payment. 3. On 11/28/23 we processed a late claim returned to Fed and received the credit from Fed same day. 4. On 1/19/24 we received a late returned debit from the Fed to deal directly with the other bank. We contacted the other bank as they insisted that it wasn't a late return. How can we resolve this situation and how we can ask other bank to pay us?

Answer:

by Randy Carey:

Talk to your legal counsel as you might have to sue them or the very least send them a demand letter.

Answer:

by Brian Crow:

There is no guarantee that this was a late return.

You send the check to the Fed on 11/21/23.
The drawee bank receives the check on 11/22/23 and has until their midnight deadline to return the check
11/23/23 is Thanksgiving
The drawee bank returns the check timely by midnight 11/24/23
11/25/23 and 11/26/23 is a weekend
You receive the check on 11/27/23

As Randy says, check with your legal counsel to see if you actually have a potential claim, but also look at the drawee bank's response. It is likely you need to recover on this check from your own customer.