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Home >> Checks/Money Orders >> Checks You Received
Bank Time Period for Returning NSF Checks
I deposited a third party check into my account seven months ago. My bank just recently told me that the check bounced, and wants me to return the funds. Is there a time limit for banks to return checks with non-sufficient funds?
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 If the check was drawn on a bank in the U.S., that bank had one business day to return the check. For example, if the check was presented to the bank on Monday, it had until midnight of the next banking day, Tuesday, to return it.
Banks are not penalized for transit delays. It's possible that the check was delayed on its trip to the paying bank. It's also possible that it was delayed on its way back to your bank. Checks have been lost due to accidents, misrouting (the bank responsible for misrouting might have some liability), or just jammed in processing equipment.
Your bank should not have accepted a charged-back check so late without challenging it as a late return. You should ask the bank to challenge the date of the return, and to refuse the return if it was, indeed, late.
If, however, the return was timely and the seven months resulted from a delay in transit, your bank was correct to charge it back to you. In that case, you'll have to try to collect from whoever gave you the check.
Published on BankingQuestions.com 12/11/07
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