Am I responsible for an overdraft in my bank account due to unknown fraudulant checks?
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Am I responsible for an overdraft in my bank account due to unknown fraudulant checks?
I received a check in the mail in which I deposited for paper trail as well as possible fraud reasons. The check cleared and was made available to my account the following day. I spent the money and 5 or 6 days later the bank withdrew the check for fraudulent reasons. I was unaware of this checks status but the bank is holding me liable of the missing funds. Is that legal?
Asked on October 14, 2011 under Bankruptcy Law, Arizona
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you received a check from a third person and you deposited it into your bank account, you are ultimately responsible for that check if it fails to clear by the maker. In other words, you deposited this check into your bank account, if you pulled monies in excess of the amount in your bank account due to the amount of the check that was deposited failing to clear due to insufficient funds or being a fraudlulent check, you have to make up the shortfall out of your own money.
Your recourse is to bring an action against the person who issued you the check that failed to clear due to insufficient funds or a fraud stoppage.
For the bank to hold you responsible in the end for the bad check is entirely legal and proper.
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