Banks cashing unauthorized checks

[Judy Williams]

What is the name of your state? Virginia

One of our employees said he lost his check. This was last year in April 2003. We issued another check, which he cashed. Our checks are imprinted with the words, "Void after 90 days."

While auditing our checking statement for July, discovered that the old check that was supposedly lost back in April of 2003, was cashed at one of the Bank branches we have our business checking account with on July 12, 2004.

Of course, this employee, is long gone out of the neighborhood, his phone disconnected and so forth.

Can I hold the bank liable for cashing a check that was over a year old and that had a "Void after 90 days" notation on it? And if so, if the bank will not refund the funds to me for this outdated check, can I take them to small claims court, and would it be worth it. The check was for $199.99.

Hope you can help......

 

[You Are Guilty]

Why didn't you put a stop-payment on the original check?

Either way, I believe the bank's responsibility is only to use "ordinary care" in the cashing of the check. While the definition is usually left up to the individual banks, a 12+ month old check is not valid under anyone's definition (google up the UCC if you need something to quote to the bank). I'd suggest you contact the bank and stand your ground.

 

[Judy Williams]

Stop Payment - Well..........

Finally got a bank rep that helped. He advised that stop payments are only good for 180 days or 6 months, which wouldn't have helped me anyway.

It's ashame that men seem to be the only ones that can help and it every woman I've talked to, which were several, didn't know anything or said they couldn't help me and I was on my own. It annoys me, being a woman, that women seem to be their own worst enemy. Whewww I'm going to get some feedback on that one.

Anyway, this man was energetic, polite, and business savvy. I can just about bet, he'll get things moving.

Thanks for your input and I'll let you know how it goes.

 

[BelizeBreeze]

It annoys me, being a woman, that women seem to be their own worst enemy.

I was thinking that very same thing when I was reading your post. But I was thinking of you.

Why are you not pursuing the ex employee for the fund? That would be an interesting avenue would it not?

 

[Judy Williams]

Persuing the Criminal

Well, I tried that, but he's long gone from the area. Only worked for us one week, and my objective is to ensure that a contract, between the bank and myself, has been broken, and when I put "Void after 90 days," that should mean something to someone in the bank, and that after 15 months, they let the check clear, well, something is wrong with the system's security procedures.

All joking aside, I tried to find the guy, but he's gone, and until I can prove criminal intent, I don't have a case, which I am trying to establish fault with the bank and file a check fraud case against this ex-employee if he is ever located.

I knew I would get some slack when I made that comment about women being their own worst enemy, but who's going to take you seriously when you joke around and not give any really useful info.

Of course, I tried to find the employee, but that's why they're called criminals. They make a life of cheating the public, taking what is not theirs, and then run off to whoever and wherever they hide. The innocent have to work like hell to prove that the "criminal" did what he did and try to get someone to listen and help. It costs money, time, energy and eventually it may not be worth it to a lot of organizations, but if it happens several times a year and they, "the criminal,"gets away with it, what kind of society would we end up with. "Crime pays???"

 

[stephenk]

have you obtained a copy of the check? who endorsed it and under what account number.

 

[You Are Guilty]

Heh. The reason a stop-payment only "lasts" 6 months is because checks aren't valid after that, thus negating the need to put a stop-payment on one. Seems like Mr. Helpful Service Rep just shot his employer's (crappy) defense in the foot. Keep fighting, you'll get your money back. Let the bank chase the crook down to collect it.