Bank's Responsibility for Fraudulent Check

[Casurf1978 0]

Long story short I sold some items on e-bay, the buyer sent me a check from Wells Fargo. I went to Wells and cashed the check, even asked the bank manager if this was a valid check from a valid account and if it was a legitimate. He said it was a valid check and cashed it. This happened last week, today I get a call from Wells saying that the check I cashed was fraudulent and I'm responsible for the 900+ dollars and if I don't pay them they will send me to collections and notify check systems. The items have already been shipped and I think I should not be held responsiblle for the banks mistake. Has this ever happened to anyone and if so what did you do.

[Cornholio 0]

Was it a Cashier's check or just a plain check from a checkbook? If it was the former, I can't see how this is possible as the Cashier's check funds get debited from the requestors account immediately. If it was the latter... well, ya.. That shit happens all the time. Always get a cashiers check unless you like throwing money away.

Live and learn, I guess.

Butthead: Whoa! Burritos for breakfast!
Beavis: Yeah! Yeah! Cool!
bellyflier on the dz.com hybrid record jump

[tigra 0]

Actually, there are lot of fraudulent cashier's checks. The criminal can put a legitimate check through a scanner and recreate it, changing any information they want. Without physically inspecting the check for watermarks and other signs of tampering, the bank wouldn't necessarily know. The OP's only option at this point is probably to go after the person who gave him the fraudulent check.

OK, I see that the OP actually went to the bank in person and presented it. There may or may not be some recourse there.

[skydiver30960 0]

What is your history with this bank? How much money do you have saved/invested with them?

If you're even a reasonably sized account, I'd go to the bank, explain the situation, put the spin on it that you tried to do the right thing and trusted what their employee said, and see if they'll be willing to "do the right thing." If you're a good customer and they're a good bank they might be willing to eat the cost to keep you.

Or maybe not. But hey, it's worth asking.

Elvisio "my beer is FDIC insured" Rodriguez

[lilDevil 2]

Never take a chq unless its bank chq, that way theyve had to pay cash for it. And never post goods untill funds have cleared. If it was a personal chq the teller should have checked the acc the funds were drawn from. If the chq book had been stolen there should have been a stop on it.

Sure the laws are the same in the USA as here, if the bank have given you cash for a dud chq, youll have to give them the funds back.

Pass the buyers info onto police as well. you must have a postal addy and name etc.
The bank will have sent the chq onto their fraud department im sure.
File a complaint with ebay so they know the buyers passing bad chqs. Dont know what youll do about your stuff :-(

```````````````````````````````````
" Cant keep a good woman down "
Angels have wings, but devils can fly !

[Casurf1978 0]

Thanks everyone. It was a business check, typed out with the business name and address from a Wells bank account. My reasoning was that since it was from Wells, I could go to any branch and cash it. Thus avoiding any potential problems if it turned out to be fraudulent. What pisses me off is that I spoke to the branch manager asking him to verify the check and he did. He even presented it to a teller. I'll go to the police tomorrow and then back to the bank. Talk about a lesson learned. Just hope others can learn from this.

[RALFFERS 0]

This would be the reason eBay nw only allows payment through Paypal.

Dialogue/commentary between Divot, Twardo & myself -

"from your first Oshkosh when the three of us were riding to or from one of

[Quincy 0]

Quote

I went to Wells and cashed the check, even asked the bank manager if this was a valid check from a valid account and if it was a legitimate.

It very well may have been a valid check from a valid account ... but still fraudulent. Look at it this way. Someone steals your checkbook ... writes a check to someone else ... and they go to the bank to cash it. Yes ... it is a 'valid' check from your 'valid' account ... but it is clearly a fraudulent check. Would you want to have those funds from your account given to the person who thought they had a 'valid' check.

The manager would have no way of knowing the check was fraudulent unless the account was flagged for stolen checks.

Tough break. Use one of e-bays paypal type services.

[labrys 0]

Quote

This happened last week, today I get a call from Wells saying that the check I cashed was fraudulent and I'm responsible for the 900+ dollars

This is why many people will insist on terms that include shipping only after a check has cleared, ie... next time deposit the check instead of cashing it and wait until your bank verifies the funds... or at least tuck the cash away and delay shipping until you know it's verified.

Owned by Remi #?

[lilDevil 2]

Ive worked for banks in AU and there are things we need to do before cashing chqs, like check who signed it, ( we keep copys of sigs in our database ) how many people to sign etc
If you have that kinda thing in banks in the USA and the teller etc didnt check it, questions need to be asked as to why.
Anyway im sure they will be onto the fraud unit

```````````````````````````````````
" Cant keep a good woman down "
Angels have wings, but devils can fly !

[Andy9o8 0]

Cases with exactly these facts are, unfortunately, very commonplace, and I've handled a number of them in my practice. The law on this subject matter is in a very active state of development right now, and I've seen a number of court decisions that would hold you liable, and a number of cases that would hold the bank liable. Depends a lot on the jurisdiction, as well as the individual judge.

Get a lawyer. Now.
Oh- and in the meantime, do not take legal advice from anyone - at all - who is not a lawyer. No exceptions.

[tigra 0]

Business checks are pretty easy to forge/ falsify unfortunately- much easier than a cashier's check, which is also fairly common. These days, all you really need is one legit check with a valid signature and a scanner and printer to make more. A few years ago, when my company's bank refused to honor a forged check that appeared to be from our account, the bank that DID honor the check took my company to court. (I guess because they figured it was easier to go after us than the criminals that forged the check??) I believe the case was thrown out in less than 5 minutes. I remember it well because it was MY signature that was forged, and not very well, either.