Hold Harmless Agreement For Check Cashing

Hold Harmless Agreement For Check Cashing

Charisse Castagnoli, an associate professor of law at John Marshall Law School, said that banks have a fiduciary duty to their clients to fulfill their wishes in good faith and, as such, they tend to be very nervous legally when it comes to conflicting with another bank, cancelling payment instructions from one of their own customers. The “no-fault” agreement is usually requested by the bank that received a fraudulent transfer, Castagnoli said, and asks the bank that responds to assume any responsibility for any costs that could be incurred later by the applicant bank if the account holder who received the fraudulent transfer decides to challenge the cancellation of the payment. Fortunately for the Littles, the FBI managed to freeze the transfer of $180,000 as soon as it reached TD Bank`s account. However, efforts to recover the stolen funds were immediately hampered when the Littles` credit union refused to give Bank of America a so-called “Hold-Schad” agreement, which the largest bank wanted as a legal guarantee before declaring itself ready to help. “When it comes to wire fraud, banks have to move very quickly, because as soon as the wires arrive at foreign banks outside the United States, the money has generally disappeared,” Castagnoli said. “The beneficiary or purchaser generally insists on a no-hold agreement because they move the money on behalf of their own account holder, which is a big “no” if you are an agent.” “I`ve spoken to the instigator several times,” Little said of the people at his Atlanta financial institution, Delta Community Credit Union (DCCU). “You finally brought me to the vice-president of loss prevention at the credit union. I`m not sure they thought it was all happening. They finally came back and told me they couldn`t do it. Their rules would not allow them to send a letter without damage, because I had asked them to do something, and they had done it.

You had a big meeting last week with the apparent ceo of the credit union and a few other people. Then they called me back on Monday and told me they would not. Keep reading → Ask your bank`s legal counsel to create a “no-damage” agreement that limits the bank`s liability. This type of agreement makes the customer liable for the loss in case of fraud or counterfeiting.