04/09/2012
We have a customer who has been in Afghanistan for the past 5 years due to their being in the military. The customer has come back to the United States and has discovered unauthorized withdrawals which took place 5 years ago - about a month after they were deployed. Are we in compliance if we deny the claim, or we obligated to pay due to fact our customer was not receiving statements to Afghanistan. The account was charged off in 2007 and customer discovered this on her credit report.
04/02/2012
A customer notified the bank of forgery on checks drawn on our bank. These were counterfeit checks with a forged signature which were cashed by our tellers. The tellers exercised ordinary care: verified the signature card, obtained proper ID and a thumbprint. But these counterfeit checks were too good and almost identical to the real thing. The customer notified us within the correct time; therefore, we refunded the money. A state police officer said that the bank is not the victim; the customer is the victim, so we didn't have to refund their money. The customer is victim of check fraud, not us. I realized that the police officer may not know of banking regulations, but is there any truth to this? I thought, per the UCC, that the Bank is liable for this. We cashed the checks and they had a forged signature; therefore, we take the loss.
02/27/2012
I am told it is a requirement for the maker bank to have their name/address printed on the face of checks drawn on their FI but I am unable to find it cited in a Reg. Can you point me in a direction?
02/27/2012
I recently took over in the compliance area at a financial institution. I have been doing research on disclosure requirements. I have been reading UCC statutes and they only state that certain signs be posted in the lobby of the bank. However, I cannot seem to find whether they have to be a certain font size, bold, etc. Is there any language that states the required lobby postings must be a certain font or not?
02/27/2012
Is ACH governed like a wire transfer? What electronic transfers methods are NOT regulated?
01/16/2012
Can an agent or authorized signer on a sole proprietorship close the account?
01/02/2012
In Texas, is it legal to issue a stop payment on a Cashier Check issued the same day? Is there a time frame and/or an indemnity bond requirement?
06/20/2011
Can you allow funds payable to someone to be deposited in an account that they have no ownership or withdrawal rights? What reg covers this? We have customers ask us to deposit checks payable to "John Doe" into account for "Jane Doe" where Jane is the only owner/signer. We always explain to them that we do not allow it because John would not be able to withdraw the funds and we do not want to take a chance on John holding the bank liable because he did not receive benefit of the funds. There is often a suspicion that John is trying to hide the funds from the IRS or because of legal judgments. We would like to know which regulation or act specifically addresses this so we can have a basis for our policy. Does this fall under money laundering under the BSA?
06/13/2011
As a follow-up to your question regarding a customer unwilling to file a police report - does that section of Reg E also include checks? It seems to speak about electronic transfers, but what about giving the customer their money back when the unauthorized transactions are stolen and forged checks? Are we required to reimburse if they will not file a police report?
06/06/2011
My job has been to work on residential compliance. My boss has just taken over the servicing side for commercial loans.I have never worked with commercial loans before now. Where would I start? I understand that some of the Reg's encompass residential and commercial. What fees are allowed? Where would those do's and don'ts be found?