As part of an insurance settlement (my shop burned down), I received two checks about a month apart. The first one (check "1") was in the amount of $30K, and the second (check "2") was approximately $8K. Since the checks had my name and the bank (Bank "A") name on them, I went to my branch, got them stamped and deposited them into my account at Bank "B".
About six months later Bank "B" notified me that Bank "A" said the endorsement on the $30K check was a fraud, and are considering charges against me. They have given Bank "A" the $30K in question. There is no dispute about the endorsement on check "2", yet.
How long does a bank have to dispute an endorsement? I have heard everything from overnight to 30 days to 180 days to 3 years. Can you also provide the Pennsylvania UCC information the pertains to something like this?
Warranties on the authenticity of endorsements are good in most states for three years. If the facts are as you have described them, talk to an attorney to protect your assets and legal rights. As for UCC citations, look at sections 4-111, 4-207 and 4-208 of the Pennsylvania version of the UCC.
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
Warranties on the authenticity of endorsements are good in most states for three years. If the facts are as you have described them, talk to an attorney to protect your assets and legal rights. As for UCC citations, look at sections 4-111, 4-207 and 4-208 of the Pennsylvania version of the UCC.
