Answers about Forgery and Fraud

I deposited several checks/money orders that were fraudulent or did not clear. The bank took the money from my checking account and then froze and/or closed my account. Can it do this?

Depending on the circumstances and your State's laws, you may be held responsible for the entire amount of the fraudulent check that you cash at the bank or deposit into your account.

If your bank gave you credit for a check that is found to be fraudulent, the bank can reverse the funds from your account. As the payee of the fraudulent check, you must pursue the maker of the check for restitution.

Generally, banks may close deposit accounts at any time and for any reason (e.g., inactivity or low usage). Federal banking laws and regulations do not address the closing of deposit accounts by banks.

Also, the bank may freeze the transactions in the process of closing your account.

This topic is governed by the Deposit Account Agreement provided to you at the time the account was opened. Review your Account Agreement and contact the bank directly for additional information.

August 2017