We just learned of a situation where one of our customers had their account number taken (suspect the mail). Who ever did this bad deed reproduced checks as well as forged the customer's signature.

The Sheriff's department is involved, and has the original checks. We're charging back each check to all banks who originally accepted them. What is the likelyhood of getting stuck with these forgeries if the other banks don't accept them? Are the other bank's who originally accepted them obligated to charge them back to the vendor who accepted them? What's our recourse in a situation like this - it's been many many year's since I've dealt with operations. It never fails when the person who would normally handle this leaves for vacation this sort of situation occurs - go figure...

The other banks shouldn't refuse them as long as they were returned according to regulations. You shouldn't get stuck with any. The other banks will charge them back to the customers that deposited them.

Loss would be taken only in the event there is no one to charge the items back to. Its the depositor that takes the hit.

Forged maker's signature is the paying bank's responsibility unless the items are returned by your midnight deadline.

Cheryle -- I strongly recommend you take a look at another active string on this subject to see how some bankers might look at your organization if it's returning forged drawer signature checks after the midnight deadline.

Here's a link to it.