The bank paid a check from my account that was for the wrong amount. The bank stated that I waited too long to report the loss. How long is too long?
Your Deposit Account Agreement states that it's your responsibility to review your periodic statement and advise the bank of any errors. Generally, you have 30 days from the statement date to find the error and notify the bank.
If the loss occurred from a fraudulent endorsement with a check, State statutes typically allow up to one year from the statement date to provide notification. However, your Deposit Account Agreement should provide the notification timeframes for this type of loss.
If the loss occurred from an electronic transaction, you should notify the bank as soon as possible, as there are separate laws that address this type of transaction. Generally, you have 60 days from the statement date to notify the bank of an error involving an electronic transaction.