Legal Question in Banking Law in Georgia

Checking Fraud

Last December we recieved a letter and check from a Publishers Clearinghouse. The check was of the amount 4995$. The letter came with instructions to deposit the check and then send the money via moneygram. My grandmother did this and a few days later found out she owed the back 4995$. Since she refuses to pay this the bank has filed a lawsuit against her and my mother. Do we have a case with this by saying it is the bank's fault for processing the check?


Asked on 4/03/08, 12:44 pm

1 Answer from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Checking Fraud

The answer is almost always going to be "no." Banks will always reserve the right to charge back bad checks. Otherwise, they would never accept any checks to begin with, since, under your theory, they would be liable for virtually all bad checks. You can probably review the account agreement and related documents. The "fault" and responsibility lies with the people running the obvious scam and the people cashing the checks and then withdrawing the funds prior to the check clearing.

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Answered on 4/03/08, 12:51 pm


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