- Substitute Checks and Your Rights
- [IMPORTANT INFORMATION
- ABOUT YOUR CHECKING ACCOUNT]
- Substitute Checks and Your Rights
What is a substitute check?
To make check processing faster, federal law permits
banks to replace original checks with “substitute checks.” These checks
are similar in size to original checks with a slightly reduced image
of the front and back of the original check. The front of a substitute
check states: “This is a legal copy of your check. You can use it
the same way you would use the original check.” You may use a substitute
check as proof of payment just like the original check.
Some or all of the checks that you
receive back from us may be substitute checks. This notice describes
rights you have when you receive substitute checks from us. The rights
in this notice do not apply to original checks or to electronic debits
to your account. However, you have rights under other law with respect
to those transactions.
What are my rights regarding
substitute checks?
In certain cases, federal
law provides a special procedure that allows you to request a refund
for losses you suffer if a substitute check is posted to your account
(for example, if you think that we withdrew the wrong amount from
your account or that we withdrew money from your account more than
once for the same check). The losses you may attempt to recover under
this procedure may include the amount that was withdrawn from your
account and fees that were charged as a result of the withdrawal (for
example, bounced-check fees).
The amount of your refund under this procedure is limited
to the amount of your loss or the amount of the substitute check,
whichever is less. You also are entitled to interest on the amount
of your refund if your account is an interest-bearing account. If
your loss exceeds the amount of the substitute check, you may be able
to recover additional amounts under other law.
If you use this procedure, you may
receive up to (amount, not lower than $2,500) of your refund
(plus interest if your account earns interest) within (number of
days, not more than 10) business days after we received your claim
and the remainder of your refund (plus interest if your account earns
interest) not later than (number of days, not more than 45)
calendar days after we received your claim.
We may reverse the refund (including any interest on the
refund) if we later are able to demonstrate that the substitute check
was correctly posted to your account.
How do
I make a claim for a refund?
If you believe
that you have suffered a loss relating to a substitute check that
you received and that was posted to your account, please contact
us at (contact information, for example phone number, mailing address,
e-mail address). You must contact us within (number of days,
not less than 40) calendar days of the date that we mailed (or
otherwise delivered by a means to which you agreed) the substitute
check in question or the account statement showing that the substitute
check was posted to your account, whichever is later. We will extend
this time period if you were not able to make a timely claim because
of extraordinary circumstances.
Your claim must include—
- a description of why you have suffered a loss (for
example, you think the amount withdrawn was incorrect);
- an estimate of the amount of your loss;
- an explanation of why the substitute check you received
is insufficient to confirm that you suffered a loss; and
- a copy of the substitute check [and/or] the following
information to help us identify the substitute check: (identifying
information, for example the check number, the name of the person
to whom you wrote the check, the amount of the check).
