Is there a time limit for a financial institution to withdraw funds from my account due to a cheque’s return?
The CPA Rules do not deal with the recovery of funds from a customer, as this is a matter that is generally governed by the account agreement between the financial institution and the customer. Although most cheque returns through the clearing system occur within 10 business days, some returns may happen much later. For example, a cheque bearing a forged endorsement has a longer return timeframe, since it may take longer to uncover the forgery. Once the returned cheque has been received, the financial institutions will generally debit the account to which it was deposited as soon as possible.
Related Questions
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- Is there a time limit for a financial institution to withdraw funds from my account due to a cheques return?
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