Impacted by Fraud? What to Do If You Discover Forged Checks
Discovering forged checks on your bank statement can be a stressful experience. This guide provides essential steps to take and clarifies your rights and responsibilities.
Upon receiving your account statement, immediately review it for any unauthorized transactions. If you identify forged checks, promptly notify your bank.
Bank's Role and Your Actions Navigating the Aftermath: Steps to Take
Your bank will likely require you to complete an affidavit asserting you did not authorize the check and may request a police report. Review your deposit account agreement for relevant clauses.
Consider closing the account if multiple forgeries exist (e.g., stolen checks). Banks are generally obligated to reimburse customers for forged checks, but investigations may occur based on individual circumstances.
Liability Considerations Who's Responsible for Forged Checks?
Generally, banks are liable for accepting forged, altered, or improperly endorsed checks. However, they may not be liable if they acted in good faith, and your negligence contributed to the forgery.
If your actions (how the check or checkbook was handled) contributed to the forgery, you might bear partial responsibility. However, even with negligence, the bank may still reimburse you if it failed to exercise ordinary care in handling the check.
“Banks are generally liable for accepting a check that has been forged, altered, or improperly endorsed.
Legal Guidance
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Time is of the Essence Important Steps and Timeframes
Contact your bank immediately to report any errors on your statement, as specific timeframes apply for notification. If unresolved, and your bank is a national bank or federal savings association, file a written complaint with the Office of the Comptroller of the Currency's (OCC) Customer Assistance Group.
If your bank is not a national bank or federal savings association, file a complaint with the appropriate regulator. Remember, information from HelpWithMyBank.gov is not legal advice.