11/11/2018
What is the bank's responsibility in regards to customers with diminished capacity? I have an elderly customer with dementia who makes frequent trips to the bank (often multiple times a day) and is in an advanced state of confusion. He often requests to take all of the money from his sizable checking account. While he has every right to his money, we are concerned that he is incapable of managing his finances on his own and is an easy target for criminals. He is walking around with a significant amount of cash in his wallet. While it does not appear that he has been abused financially, he does not have family who is willing to help him out. It is obvious that he no longer needs to be in control of his finances. As his bank, what are our options as far as keeping both the customer and his assets safe?
04/29/2018
Bank A issues a cashier's check for $25,000 payable to Smith Jones Construction. Bank B accepts the check for photo deposit into Mr. Jones' personal, private account indorsed with only his single signature. The cashier's check is never endorsed in the name of the payee company. Bank A then accepts the check from Bank B. Mr. Jones quickly withdraws the money from Bank B and misappropriates the funds. The business itself never gets paid. If it matters, this is in Ohio.
What banking errors were made here and by whom? The business is asking for recourse.
01/07/2018
Are there circumstances that would prohibit an account be restricted opposed to placing a hold on the account? For example, a customer cashes a counterfeit check against their checking account and inevitably the check returns, resulting in overdrawing their account. What is the best method to protect the bank and the customer from any further losses: a hold on their account for the amount of the counterfeit check, or restricting the account? Are there any NACHA regulations, such as return reasons, that prohibit
restricting an account?
10/29/2017
When closing an account with direct deposits for fraudulent activity, is the bank required to give the customer 30 days' notice before closing?
10/29/2017
How long should a bank continue to pay valid checks on an old account that was closed due to fraud from the new account opened by the customer?
02/19/2017
In regards to Reg E, we know that we cannot make a customer fill out a police report to dispute a charge to receive provisional credit, however during the course of the investigation if there is true counterfeit card fraud can we then ask the customer to file the report in order for the bank to receive restitution in the event the fraudster is caught?
09/04/2016
Our processor says we don’t have chargeback rights since a debit card purchase was made using MasterCard SecureCode. Can we deny the claim since the cardholder’s password was used?
06/05/2016
A person came in with a check drawn on our institution and wants to convert it to a cashier’s check. Is there a BSA issue involved?
05/08/2016
Our customer’s ATM card fell out of his wallet and there were two unauthorized withdrawals of $500 each. He didn’t report the theft until he found the charges on his statement and realized the card was missing. Since he reported the theft more than 2 days after it happened, is his liability $500?
03/27/2016
We are re-evaluating the practice of accepting third-party checks. Can you recommend a source for me to research and present the risks to executive management?