Asked by Preston Tribble on May 17, 2024
Verified
Nolan receives his bank statement from his bank on January 5th and notices a check that was cashed from his account for $350. The check was not authorized and Nolan does not let the bank know right away because he leaving that day to go on vacation. Nolan forgets about the unauthorized payment until March 10th. At this point, with regards to the check,
A) the bank cannot honor the check
B) Nolan will have to file papers at the bank alleging fraud
C) Nolan cannot hold the bank liable for the check
D) Nolan will have to sue the bank to receive his funds
E) Nolan will have to notify the bank and then wait 30 days to have his money returned
Unauthorized Payment
A transaction made without the consent or authorization of the account holder.
Bank Statement
A document issued by a bank detailing transactions, balances, and other financial information over a period of time for a specific account.
- Ascertain the protocols and schedules for declaring lost or stolen financial instruments or illicit transactions.
Verified Answer
CR
Christopher RogersMay 23, 2024
Final Answer :
C
Explanation :
Nolan cannot hold the bank liable for the check because he failed to report the unauthorized transaction in a timely manner. Banks typically require customers to report unauthorized transactions within a specific timeframe (often 30 to 60 days from the statement date) to be eligible for reimbursement. Since Nolan waited over two months to report the issue, he has likely missed the window to hold the bank responsible.
Learning Objectives
- Ascertain the protocols and schedules for declaring lost or stolen financial instruments or illicit transactions.