When to return stolen checks

The answer will vary depending on each individual states' Uniform Commercial Code. The timeframe for forgeries and counterfeit checks is your midnight deadline, that is midnight the business day following the day the check is presented for payment. If the drawee bank misses the midnight deadline window, it is more than likely on the hook for the loss.

Forged endorsements, altered, and washed checks must be submitted to the bank of first deposit without entry along with corresponding documentation such as affidavits from the check maker or payee, as applicable. Timeframes for submitting a claim can vary from 60 days to three years depending on what state you are in. Since check returns are legal, rather than regulatory compliance, issues, you should inquire with your legal counsel about the laws in your state.