A person in our office paid her credit card bills by ARC payment for five years. She had no authority to move money out of the company account. What is bank`s liability?
Untitled
The bank's liability will be determined by state law (the state's version of the Uniform Commercial Code), a finder of fact (a court or arbitrator) and any applicable provisions of the deposit contract. The legal principles involved in this situation will assign responsibility to both the bank and the business itself. In a scheme that lasts for five years, the business typically bears a large part of the responsibility because it has a duty to review its bank statements and maintain controls over access to its accounts. In many cases involving similar frauds, a settlement may be worked out between the bank and its customer.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
The bank's liability will be determined by state law (the state's version of the 