[lucid09]

The check I wrote was for $1.85 with the word "One and 85/100 only". Last month my acoount statement came and it showed $7.85. I asked my bank in person twice. Finally, the banking officer wrote me the following letter:
" We have received your complain about the discrepancy of a check written to xxxxx
xxxxx. The check was written for $1.85. But your account was taken $7.85. Since the check was deposited by the payee to their bank, it went through the Federal System's clearing process and presented to our bank with an amount of $7.85, which is $6.00 more than your intention.
We have talked to the proof department, and confirmed that the fed is not accepting adjustment from our end for amount less than $30.00. So please ask the payee to give you the money back. Because it was the depository bank who made the encoding error. It is not our bank's fault on this case."
The banking officer also told me not to write any checks less than $30 in the future.
I did email the payee ask for correcting the error, but she said I should go to my bank. Is there anything I can do if the payee does not pay the $6.00 back? Is it the foult of my bank to let the money out of my account?

[twinkiedooter]

It's not your bank's fault - it's the other bank's fault for encoding the wrong amount. They are the ones who owe you the $6.00.

A few months ago my company had received their monthly statement from the bank. A check written to an excavating company in the amount of $7,500 ended up clearing the company's bank for $75,000!! The bank doing the encoding had to correct the error, not the bank the company was doing business with.

[ScottGem]

If the payee refuses to return it contact her bank.

What was the check for?

[lucid09]

The check was for the postage the payee sending a cd-rom back to us. Her email said that she wrote a "1" on her deposit slip.
I asked my bank to call the other bank to correct the error, but my bank told me they didn't know which bank made the transfer/deposit.

I still believed it is my bank's fault somehow since they let the money out of my account. Apparently, the OCC(The Office of the Comptroller of the Currency) agreed with me if I don't misunderstanding the FAQ in the OCC web site:
"Question: I wrote a check for $300, but the bank posted it as $3,000. The bank told me to get the money from the other party. Is this correct?
OCC Answer: No. This appears to be a check altering/posting error. The bank must correct it. You should notify your bank so it can investigate the error. The bank may require you to complete an affidavit.

The time period for this prompt notification may vary by bank and State; if a check was altered, you may have up to one year to assert one alteration. Generally, for multiple alterations, national banks require you to notify them of any error(s) within 30 days after you receive the statement.

Your Deposit Account Agreement specifies your bank's specific time requirement. Review that agreement, then contact the bank directly regarding any alleged error."
I don't know what is the different between my $1 and the $300 here in term of right and wrong.

[ScottGem]

Your cancelled check should show the other bank

[Fr_Chuck]

Your bank does not have to honor the actual check once it is presented for the higher amount, this is very common in the cases where there are fraud checks, they are cleared though the original bank but are latter declined by the issue bank.

Explain to them the great news value this will be, esp on YouTube maybe, when you sue them, you can sue in small claims court and collect your filing cost.

I would do it, just to force them to pay me my 6 bucks.

[lucid09]

your cancelled check should show the other bank

Unfortunately the cancelled check is an electronic copy. It can't be seen clearly. My bank said they don't have the original and have no way to get it.

[lucid09]

Your bank does not have to honor the actual check once it is presented for the higher amount, this is very common in the cases where there are fraud checks, they are cleared though the orginal bank but are latter declined by the issue bank.

Explain to them the great news value this will be, esp on youtube maybe, when you sue them, you can sue in small claims court and collect your filing cost.

I would do it, just to force them to pay me my 6 bucks.

It concerns me the most this matter is that I have no safety for writing checks under $30. I hope I don't have to go to the small claims court that far . I plan to show my bank the FAQs from the Office of the Comptroller of the Currency site I have just found this evening. If they don't fix the problem, I will file a complain with the OCC who regulates banks since it can be filed online.

[ScottGem]

First, I would forget about a suit. It will cost you more than the $6. Second, The example you found does not necessarily apply to you. What it doesn't state is WHO made the posting error.

Everything is done mostly electronically these days. So the process goes like this.

• Payee takes check to their bank and deposits it.
• The check is scanned and the amount and routing info is read.
• There are checks to see if the info matches daily transactions.
• An electronic transmittal is prepared and sent to the local clearing house. The clearing house takes all the submissions, groups them by bank and forwards to the payor's bank.
• The transactions are them added to the payor's account.

So, the posting error was made by the payee's bank. And that's who you need to go after.

[lucid09]

First, I would forget about a suit. It will cost you more than the $6. Second, The example you found does not necessarily apply to you. What it doesn't state is WHO made the posting error.

Everything is done mostly electronically these days. So the process goes like this.

• Payee takes check to their bank and deposits it.
• The check is scanned and the amount and routing info is read.
• There are checks to see if the info matches daily transactions.
• An electronic transmittal is prepared and sent to the local clearing house. The clearing house takes all the submissions, groups them by bank and forwards to the payor's bank.
• The transactions are them added to the payor's account.

So, the posting error was made by the payee's bank. And that's who you need to go after.

In the example I found if the $300 is changed to $1.85, it will read like this:
"Question: I wrote a check for $1.85, but the bank posted it as $7.85. The bank told me to get the money from the other party. Is this correct?
OCC Answer: No. This appears to be a check altering/posting error. The bank must correct it. You should notify your bank so it can investigate the error. ...."
It is hard to see how is difference here.
I could take the words about the encoding errors happening in payee's bank. However, I cannot agree on it is not my bank's fault to let the money out of my account. I did questioned them about this one. Their reply is that they could not check the number against the check I wrote because there are too many transactions. In fact, using pattern recognition technique the checking could be done by the computers just like other transactions steps automatically. If the bank don't want to build a computer system to check it, then the bank have to take the lost as doing business. At least, my bank should go after the payee's bank in this case.
I did ask my bank to go after the payee's bank, but they said they can not find out the payee's bank. Is there anyway to find out the payee's bank?

[ScottGem]

The difference is that it doesn't specify which bank. The way I read it, the assumption is that YOUR bank made the mistake.

[lucid09]

The difference is that it doesn't specify which bank. The way I read it, the assumption is that YOUR bank made the mistake.

If the example from the OCC's site have two assumptions, it could be: (1) Other bank made an encoding error, but it was my bank made the mistake to let the money go without matching the amount of check. ; Or (2) My bank made an encoding error and made a mistake to let the money go without matching the amount of check. However, if it is the later(2), it is not likely it would said "the bank told me to get the money from the other party" . Also, because a check transaction is initiated from the other bank, it is impossible that the other bank sends a 300 number and my bank pays 3,000. It cab only be other bank send a 3,000 number and my bank pays 3,000.

[ScottGem]

Ok, if you think you know the answers, then why ask the questions?

Good Luck

[lucid09]

Ok, if you think you know the answers, then why ask the questions?

Good Luck

When I first posted the questions, I hadn't found out the OCC site yet. Besides my bank could still read the example the way you read. I certaintly wish I could find the same case from someone who won his/her case in this site. Regardless I do appreciate the replies from you and others and it will help me for the next moves.

[ScottGem]

I really do wish you good luck and let us know what happens. I hope my interpretation was wrong.

There is, of course, the possibility that your bank will eat it in favor of good customer relations.