Business checks were stolen from a locked office and were stored in a file behind other items. Only my bookkeeper and I knew their location. I discovered that checks were stolen two days after an out of sequence check cleared the bank. I immediately contacted the bank and filed a police report. I filed a fraud report with the bank. The bank cashed a business check marked payroll from a person with an out of state ID, without a local address and the bank failed to have the check endorsed. They are denying my fraud claim due to my lack of ordinary care in storing my check stock quoting UCC 3103. They also quoted UCC 3406 stating my lack of ordinary care substantially contributed to the forgery. I faxed and mailed them an appeal letter stating their errors, but they will not even look at it since they closed the fraud case. What do I do? Is there an agency that I can appeal to and file a report against my bank?
A complaint filed with a state or federal banking regulator might get the bank to take another look at the situation, but regulators probably won't do much more than forward the complaint to the bank. As you have presented the scenario, the bank may be on shaky ground in its argument. You appear to have been diligent in reviewing your account for unauthorized transactions, and the bank would have a hard time arguing that your security over the unissued checks was lacking, even if it was your bookkeeper who stole from you.
Unhappily, you are trying to get a reluctant party to move. That may take some persuasion of a less gentle nature. It's probably time to talk to legal counsel about the bank's refusal to make you whole.
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A complaint filed with a state or federal banking regulator might get the bank to take another look at the situation, but regulators probably won't do much more than forward the complaint to the bank. As you have presented the scenario, the bank may be on shaky ground in its argument. You appear to have been diligent in reviewing your account for unauthorized transactions, and the bank would have a hard time arguing that your security over the unissued checks was lacking, even if it was your bookkeeper who stole from you.