I tried to deposit a large check ($20,000) into an ATM on Friday but the machine wouldn't take it because of the quantity. The next day I discovered that I had lost it and immediately called the issuer (a brokerage firm) and they said that they would put a stop payment on it on Monday.
While I don't believe that a bank or a check-cashing place would cash it due to its size, there is always the possibility. In the instance that someone did cash the check do I have any recourse?
First, a short explanation for those who are wondering how the amount of a check might prevent one from making a deposit. In some ATM systems, the depositor is asked to key in the amount of the deposit. In some cases, an ATM deposit is actually posted to the depositor's account (in a memo form) when the envelope is pulled into the machine. To prevent problems with fraud, there may be a maximum ATM deposit dollar amount per transaction or per day. In this case, it appears the check was larger than the deposit limit for the ATM system in question.
Now, to your question:
If you endorsed the check before trying to deposit it, it would make it very difficult for you to recover the funds if the check is found and negotiated by someone other than you. You definitely did the right thing in notifying the issuer of the check, but you should be aware that the stop payment placed by your brokerage firm is not a guarantee that you're "home free." If the original check is found and negotiated, there could be a hassle when the brokerage tries to argue that check was lost after you endorsed it, putting subsequent holders at risk of loss. Be prepared to testify if the brokerage has to defend its stop payment in court.
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
First, a short explanation for those who are wondering how the amount of a check might prevent one from making a deposit. In some ATM systems, the depositor is asked to key in the amount of the deposit. In some cases, an ATM deposit is actually posted to the depositor's account (in a memo form) when the envelope is pulled into the machine. To prevent problems with fraud, there may be a maximum ATM deposit dollar amount per transaction or per day. In this case, it appears the check was larger than the deposit limit for the ATM system in question. 