My husband and I discovered a forged check in the amount of $5,000 this March. We immediately notified the bank, but they told us that since we didn't notify them within 60 days of the statement (Oct 2008), we are liable for the loss. What recourse do we have? The signature was clearly forged and does not match the one we have on file with the bank.
Review your bank account agreement with your bank. It should have in it a recitation of your obligation to promptly examine bank statements and notify the bank of any unauthorized or altered items. In that language, you should see wording that establishes the time period within which your notice should be made.
If you cannot find such language, contact the bank and ask on what it bases its 60-day deadline for notification. If there is no contract provision, state law (the Uniform Commercial Code) will establish the requirement. If you need assistance with the provisions of the Uniform Commercial Code or to better understand whether you have additional rights with regard to the $5,000 check, contact an attorney.
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