07/09/2007
We cleared a check through the cash letter on April 24, 2007, for one of our customers. Upon review of their statement, they realized that the item did not belong to them. The routing number and account number on the check belonged to them and were correct. The check is drawn off of a different company name and has a different bank name on it as well. It is obviously counterfeit and was cashed at a [Name of Discount Store withheld] somewhere. What are our options for returning this? Over a month has passed since the check was cleared.
03/05/2007
A customer deposited postal money orders that someone gave for a sale of items. The money orders were returned nine days later as apparent counterfeit postal money orders "not eligible for late claim." Can they do that?
01/22/2007
Our credit union in Maryland had a member come in and deposit a counterfeit cashier's check. Ten days later, the check was returned to us as a bogus item and of course the money in the member's account is gone. The check was drawn on a [Bank Name Withheld] account and they say that it was one of many checks that were stolen a few years ago, but we had no notice of that. Right now, we're out $4,885. What is our recourse?
09/18/2006
How long does a financial institution have to create a notice and notify customers when they have bounced a check?
08/01/2006
By Dana Turner
Altered Documents
05/01/2006
What is the liability for a "paid" counterfeit check on the Payor bank if the check was not returned timely? Are there "Warranty" issues for the collecting bank on a counterfeit check?
10/03/2005
A counterfeit check clears a large, corporate, non-profit client's account and the client reports it to us within 30 days. In the course of an investigation the client mentions that the serial number of the counterfeit check matches the serial number of a check that was issued 6 months prior and never cashed. The client stated that they knew the payee never received the check and said "I guess I never put a stop payment on that one...." Does the drawee bank have a defense under UCC regarding customer negligence? The client knew the check was lost and outstanding and if a stop payment was placed the counterfeit would never had cleared. A client of this size and sophistication should reconcile daily and use positive pay services as well, but they don't. Basically, is there any strong defense for me if I deny this claim?
08/29/2005
Our bank is offering positive pay and reverse positive pay to business customers that write many checks per month, to prevent counterfeit checks.If a customer's computer system is not capable of sending us an issued check file or receiving a paid check file and comparing it to their issued checks, what can the bank do to protect itself in the event counterfeit checks are passed? Would an agreement between us and the customer, which would waive their rights under UCC, and make them responsible for unauthorized items, stand up in court? Any other suggestions?
08/10/2005
Avoiding Losses on
Counterfeit Treasury Checks
by Mary Beth Guard, BOL Guru
08/01/2005
Question: In one of your past issues on the Question and Answer page you addressed the problem of the bank that cashed a counterfeit check.