Date: 02.13.11
Area: Banking
For: Georgia, USA

I'm in GA and relating my question to GA banks. If a check is written for Company A and Company B (having a very similar name) endorses it without any endorsement signed by Company A. Can I sue my bank for wrongfully endorsing a check to the wrong party?
I'm in GA (not sure if it matters). 2 personal account checks were written to Company A in Nov. 2009, then 2 more commercial bank account checks were written to Company A in April 2010. Copies of the checks, back side showing endorsement, were never automatically provided by the bank. Statement only showed check # and Amount debited from the account. After April 2010, when Company A failed to deliver goods and things became suspicious. We begin researching and realized my Bank and X-Bank, both, negligently honored my 4 checks which were wrongfully endorsed by Company B, unbeknownst to me. Company B name was so similar that it took 2nd and 3rd looks at the back of the checks to catch something is different. Upon research, it was discovered that Company B cashed the checks intended originally for Company A. Company B was unknown to us completely. Both Banks were negligent and fail to notice wrongful endorsement by Company B. One Bank was co-operative and understanding enough to admit our complaint of fraud while Second Bank states they have 30 days rule for customers to report such issues and won't file any complaint of Fraud. What are my rights under UCC, State and Federal Laws to hold Banks liable for such a negligent behavior?
0 answers | Asked on 02.13.11 in Banking.

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