Who is liable for a forged check

Rest assured the bank will do whatever it can to bring the forger to justice. If the bank agrees a crime has occurred, it will refund your account. Most states have a statute of limitations on forged checks.

You usually have between one and two years beginning from the date the check was cashed to report the theft. Those policies should be explained in the agreement you signed when you opened the account.

The bank that accepted the check ends up paying the most. This bank, the depository bank in official terms, must reimburse your bank for any forged checks. It may also request that you file a police report. If you have an account with multiple forgeries for example, stolen checks , you should consider closing the account.

Banks are generally required to reimburse customers for forged checks. However, based on individual circumstances, a bank can investigate to determine if the customer is entitled to a reimbursement.

Under the Uniform Commercial Code UCC adopted by most states, a bank may only charge you for checks that are "properly payable," which a forged check is not. This creates potential liability for a bank if it charges you for a forged check. However, this liability may be shifted to you under certain circumstances.

If the forgery was caused by the customer's negligence, the bank may deny liability. When you receive a monthly bank statement, you are responsible for carefully reviewing the checks listed and promptly notifying the bank of any discrepancies usually within 30 days, sometimes less.

If you fail to do so, the bank may not allow you to recover the funds. Even if you failed to review your bank statements in time, you may recover the funds if you can show that the bank was negligent in paying the forged check. Connecting …. Are You a Lawyer? Grow Your Practice. Jose Rivera Managing Editor Editor. Last Updated: Apr 25, Choose Your Legal Category: Family. Criminal Defense.

Real Estate. Child Support. Other Legal Categories. X 1 Enter Zip Code or City this may not be the same place you live. Consumer Bankruptcy.