Answers about Forgery and Fraud
The bank paid a check when it was obvious that the signature was not mine. Why didn't the bank catch this?
National banks are responsible for knowing their customer's signature, but they do not manually process checks. Each day a huge volume of checks are processed through the clearinghouse for payment. Checks are processed by machines that read the MICR-encoded routing number.
You are responsible for reviewing your periodic statement. Generally, if there were multiple problem transactions from the same person, you have 30 days from the statement date to find the error and inform the bank. However, if there is one problem transaction, you generally have up to one year after the statement date to notify the bank. (Please note: the time period for this prompt notification may vary by bank and State.)
Your deposit agreement specifies your bank's specific time requirement. Therefore, we suggest that you review your Deposit Account Agreement and contact the bank directly regarding any alleged error.