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Home >> Scams/Fraud
CU Processes Bad Checks: Takes No Responsibility
Someone found an old checkbook of mine that was still good, and wrote himself about thirty checks, totaling about $1,400.00. I did not realize this for several months. I notified the credit union where this account is, but at first I only sent them a copy of one check, which is what they gave me when I went in to report it. They charge $3 per copy of each check, and they don't send returned checks; the checkbook has a carbon, and that person was in possession of the checkbook. Because they had paid the one, I see that as them admitting that they had some responsibility. The check writer forged my name without even attempting to imitate my signature. All the checks were forged within a few weeks of each other, sometimes more than one per day. He made them out to himself. I got copies of all the checks and sent them to my credit union, asking for reimbursement for all (except the one they already paid) and they refused, saying I took over sixty days to report it. This took place in NY. I'm wondering if you think I have any chance of recovering the money from the credit union and if so, how can I go about it? I'm trying to go after the thief too, but I'd like to know about the credit union's responsibility in this.
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 The responsibilities of a bank or credit union when paying checks on its customer's accounts are not to be dismissed lightly, but they are at least partially balanced by the responsibility of the depositor to promptly review account statements and report unauthorized transactions. That customer responsibility is not diminished when the bank provides neither checks nor images them with its statements. The fact that an unrecognized check number or amount is deducted from the account should be sufficient to prompt the customer to inquire and obtain a copy of the check.
The law imposes a time restraint on customers when there is a series of unauthorized transactions made by the same wrong-doer. The customer only has sixty days in such situations, from receipt of the first statement reflecting the payment of the first in the series of fraudulent checks to notify the bank. Fraudulent checks paid before the end of the sixty days after delivery of that statement can be the responsibility of the bank; those paid after the sixtieth day, are the customer's responsibility.
The customer has an opportunity to detect, report, and stop further forgeries, and assumes the onus of loss if he fails to do it. It is unfortunate that you experienced all those losses, but you are stuck simply because you failed to review your statements completely and promptly.
Published on BankingQuestions.com 1/05/10
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