We received a notification from our check processor on two checks that we accepted for deposit multiple times. Our member completed mobile check deposits on two of his payroll checks and we were just being notified that we were going to receive an adjustment. Is there a timeframe where the issuing bank can dispute these duplicate checks? They are dating back to the beginning of 2017 and our processor is stating they will be sending us the adjustments for all of the items. Is there a cutoff at 1 year or 13 months for these checks to be able to be disputed timely?

Thank you,
VSalazar22

In general, it's one year, but it will depend on the UCC of the state in which the banks are domiciled. The paying bank has a statute limiting the period during which its depositor has a claim of duplicate payment (essentially, it's a claim that all but the first payment of a check are unauthorized), and that's dependent on that bank's deposit agreement and the UCC of that bank's state (typically 1 year, but some states have a shorter period). As depositary bank you make presentment and transfer warranties for up to three years, but a warranty claim against you would fail if the paying bank's customer didn't have a valid claim against the paying bank.

Problem is, if you are charged for the checks, you'll have a hard time getting it back, and it may not be worth legal action to recover.

you may want to review your contract with your processor to see if there is language that provides a longer or shorter period where these adjustments can be made, and if you have an ability to contest the charge back.

We both checks deposited both times back in 2017 or were the initial deposits in 2017 and the 2nd deposits in 2018?