Legal Question in Banking Law in New Jersey

Banking law

I was scammed by wiring money to someone as a secret shopper.The check that was sent to me was deposited into Bank of America, which was also the bank that the check was drawn on. When I tried to deposit it at the ATM it didn't go through so I deposited it at the bank the next day. I know there are alot of scams out there but there are also legitimate secret shopper jobs too. So I decided to deposit the check to see if it cleared and it did. I withdrew the funds and did a ''shop'' at Walmart and the western union wire service. The next day Bank of America said the funds were not clear and this was not a valid check. My husband called the fraud department and they said to go into the bank. My husband and I went into the bank and spoke to the asst. manager. She told us that the check was red flagged from the initially attempted ATM deposit. And they were aware of this scam. So I asked why would they clear the check and cash it out if they new it was no good as my bank they are my ''Clearing house'' and protection. So basically they said we ''owned it'' and had to pay it back. I feel that the bank failed to due it's duty and act as my clearing house and protection. I think the bank did not do it's job and should take the loss. 4k in ??


Asked on 2/17/09, 12:17 am

1 Answer from Attorneys

John Corbett Corbett Law Firm LLC

Re: Banking law

With the facts as I understand them, the bank is correct. The knowledge of the ATM system is not imparted to the teller nor does the teller put the check into the bank's system at the desk. By law a bank has until midnight on the day of presentment to decide whether to pay the check or not. If you received funds when you deposited the check, it was not because the check had "cleared" but because you had other cleared funds and the bank paid you at your request as a courtesy. Your depositor's agreement no doubt cautions that you are responsible for a deficiency. Checks never clear until the next banking day even when draw on the same bank or federal reserve district. Out-of-State checks take two days to clear at a minimum. Foreign checks can take weeks.

Had you waited until the following day before using the money, the bank might be on the hook. A bank is responsible for recognizing the signatures and endorsements of its own depositors (however unrealistic that might be) so the bank did its job by detecting the forgery the same day.

BTW checks drawn on foreign banks cannot be assumed to clear within a fixed period of time. If you ever deposit such a check, do not use the money until your bank tells you that the funds have been "paid without recourse."

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 2/17/09, 9:37 am


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