Am I responsible for an overdraft in my bank account due to unknown fraudulant checks?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 9 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption