Hey,

Apologies if this is in the wrong forum, or already covered elsewhere:

I am wondering if the one year time limit for consumers to report fraudulent check clearing also applies to other documents--particularly loan applications? Or are there different time limits that would apply?

Thanks for your assistance.

If a customer is a victim of ID theft and is claiming a loan was open fraudulently in their name, I am not aware of any time limitations stated in the FCRA or FACT. This question may be best answered if it is posted in that forum.

Any limitations on reporting a loan fraud will purely be a function of state, not federal, law.

In very general terms, the consumer is not required to take any specific action. As long as he tells you about it, you are on notice. From my perspective, the only time the clock beguns to run on the victim is when your bank takes some legal action intended to enforce the debt and he has to assert some defense.

There are time frames in which deposit related fraud must be reported because, in reviewing his statements, the consumer has an opportunity to know. The same rationale does not apply to a loan, there is no basis for assuming that the consumer knew or should have known.

Quote:

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It is hard to think that she did not have any responsibility to notify us sooner;

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Agreed. She will still be able to assert the forgery. Unless the forgery is a poor one, the fact that she did not mention it earlier will make it more difficult for the finder of fact to accept her contention. Assuming the borrowers are married, she had access to the statements where her name appeared as a borrower, and the collateral was used by both parties, she may be estopped from asserting the defense even if the claim of a forgery is credible.