|
 |
Home >> Checks/Money Orders >> Checks You Received
Bank Assumes Forgery: Can they do this?
I received a check (in CA) in the amount of $30,000 from my best friend in NJ, a couple days before she took her own life. I deposited it, expecting to take care of her funeral etc. However it came back stamped "Forgery & ALT" from her bank. When I called the bank and explained, they apologized saying they thought that it may be a forgery done by my friends stepson, because they had heard some horror stories about what this stepson had done to my friend. I am still shocked that they can just assume a check is a forgery without first investigating this and putting a hold on this check. Please explain.
|
|
 A bank obviously doesn't want to pay a check that its depositor did not authorize. However, sometimes it's difficult to make that decision on a given check. In normal circumstances, a bank could contact its depositor to ask about the check. Clearly, that could not be done in this case.
It's a pretty risky thing to return a check marked as a forgery unless a depositor has actually informed the bank that his/her signature was forged. That's why we usually see checks sent back "signature", which is usually interpreted to mean "signature doesn't agree with signature on file", rather than "forgery". It's risky, because sending a check back for forgery when it was legitimately signed could lead to a claim of unlawful dishonor of the check.
In this case, it appears the check was presented for payment after your friend's death. The bank would have been permitted to refuse payment at that point, simply because of her death. The bank may, but doesn't have to, honor checks presented after death even if they were issued before the date of death. After ten days from her death, your friend's checks are no longer properly payable. If you believe that you have a claim on your friend's estate because she sent you the check, you should determine who will be the executor or administrator for the estate and present your claim to him or her.
Published on BankingQuestions.com 10/09/08
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
