Whenever we receive a check return without entry, there's always some confusion surrounding the action that needs to be taken. I'm looking to build out a reference matrix that would help my team (and others) handle these situations more efficiently. I've looked and looked for an existing matrix or site that we could use for reference, but have been unsuccessful in find one. In what situations must we remit funds to the requesting bank regardless of the availability in the account? What is the timeframe for these kinds of returns? Does the requesting institution have to send a notarized letter of forgery? On the other hand, in what cases would we just remit the available funds in the account or decline the return request all together? What are the timeframes for these return requests?
Any input would be greatly appreciated!