how long does a bank have to fully process a check?
I deposited a check from a 3rd party for $ 500 in May. The bank did not process the check until October due to an internal error. Now in October, the bank says the check has insufficient funds and debited my account. Is this a legitimate practice? How much time does the bank have before it becomes responsibility to recover the funds? Is the bank allowed to draw from my account?
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Answer by bdancer222
I suspect that you have made some assumptions that are not true. I seriously doubt that the bank failed to process a check deposited in May. The truth is that it probably took until October until the check came bouncing back thru the system since the check was counterfeit or stolen/forged. It normally takes several months for the account holder to discover the fraudulent check and dispute it with their bank. The check then works it's way back to your bank.
Yes, it is perfectly legal for your bank to take the funds from your account. You got the $ 500 and since the check wasn't good, you have to give the cash back. You can then go after whoever gave you the check to get your $ 500.
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