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LegaldEagle, Attorney
Category: Business Law
Satisfied Customers: 269
Experience:  Over 10 years of Real Estate, Corporate and Estate Planning Experience
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I have business in Georgia. I have a fraud check for $982.00

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I have business in Georgia. I have a fraud check for $982.00 that was cashed at a BB&T branch apparently without ID or an account relationship. My company recently moved and our mail was to be forwarded. The bank has the correct address but said that it was too late for the cutoff of the statement. When we did not get the statement, we went to the bank and had them print a statements and that is when we found the fraud check. It was 41 days after the statement cutoff. The bank will not reimburse us because they say Federal law allows only 30 days. We feel that the bank was negligent by cashing a check without ID or an account # XXXXX under the circumstance we never received the statement so we immediately reported it when we were made aware of it. What is the law and what is the responsibility of the bank.
The law governing this in Georgia is codified by:

ocga 11-4-406.

I think this case should be governed by section (f) of the ocga, because you did not lack a standard of care in reviewing your statements. You state that you moved, notified the bank of your new address and had your mail forwarded. It seems that you did not get the statement within the 30 day period; however when you did get the statement you immediately notified the bank, which was within 41 days. The statute says that

(f) Without regard to care or lack of care of either the customer or the bank, a customer who does not within 60 days after the statement or items are made available to the customer (subsection (a) of this Code section) discover and report the customer´s unauthorized signature on or any alteration on the face of the item or who does not within one year from that time discover and report any unauthorized indorsement or alteration on the back of the item is precluded from asserting against the bank the unauthorized signature, indorsement, or alteration.
If there is a preclusion under this subsection, the payor bank may not recover for breach of warranty under Code Section 11-4-208 with respect to the unauthorized signature or alteration to which the preclusion applies."

I think it is reasonable that you did execute a normal standard of care and so the 60 day window is available.

I would go back to the branch and talk with a manager about the code section linked here 11-4-406

The law is pretty clear that you have 60 days if their is only one forgery by the wrongdoer.
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