Dissecting Account Liability Issues

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Question:

Our customer deposited a check without endorsing it. We accepted it and sent it through the check processing system. The drawer of the check has called and said he wants his money back from us because the check wasn’t endorsed. Now what?

Answer:

A. The drawer of the check is barking up the wrong tree. First, he can’t press a claim directly against the depository bank, and second, he doesn’t have a leg to stand on because UCC Section 4-205 protects you when you accept an unendorsed check from the payee.
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Learn more about Mary Beth Guard’s webinar
Dissecting Account Liability Issues