QUESTION
Am I liable to my bank for cashing a counterfeit check?
Asked on Aug 31st, 2012 on Bankruptcy - Utah
More details to this question:
I communicated with an individual on Craigslist looking for someone to conduct a few transactions for him. He agreed to pay me and sent me a check on two different occasions. I deposited the first check with my credit union and it was fine. Over two months went by and I was not informed of any fraudulent activity. When I cashed the next check, I received a phone call from the credit union right after I left telling me the check was bad and to return the money. I went back to the teller and returned the money, but now they charged my account for the first check from months ago that was apparently bad too. I didn't know the checks were bad and I communicated with this individual several times. The whole thing looked legit but it was a scam. Am I liable to the bank?
3 ANSWERS
Dennis P. Mikko
Yes, you are liable to the bank. The credit union accepted the first check on the agreement that if it was bad they could look to you to make it good. This is usually done by charging your account as they did. Whether you thought the check was good or not does not affect the rights of the credit union.
Answered on Sep 05th, 2012 at 6:12 PM
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James T. Weiner, P.C.
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Unfortunately you are liable to the bank even if you are the one being scammed.
Answered on Sep 05th, 2012 at 6:11 PM
Assuming you endorsed the check before cashing it, yes you are liable. Endorsement is an agreement to be liable on the check as well, which is why banks require you to endorse before they will give you cash.
Answered on Sep 05th, 2012 at 6:10 PM