Who Is Liable for Forged Checks?
Although a forged check can clear in a matter of days, the victims of the checks typically bear no liability provided they perform due diligence on their bank accounts. Neglecting to resolve the matter can shift the blame to the victim or the bank.The FactsAs of 2009, the United States dictates that the party who forges a check retains liability for legal consequences and financial responsibilities, even though the person does not sign his real name.MisconceptionsNot all checks signed by someone whose name is not on the check count as forgeries. A bank might cash a check signed by a third party if he holds the legal right to sign it, such as a legal guardian for a probate.Bank and Consumer LiabilityBanks become liable for any loss due to a forged check if they disregard normal guidelines of the financial industry to screen for forgeries. Customers may bear liability if they do not review bank statements for errors within a reasonable time frame.Proving a ForgeryIf the bank refuses to a
