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I got a loan from a company, it was a paper check that i had received the check in April. I found the check today, un-signed, no void notes. I figured I hadn’t cashed it in considering it wasn’t even signed.

So I took it into a "Check into Cash" and cashed it. However, I just found out looking at my bank transactions online & that the same check had been mobile deposited already back in April when I received the check. Help! I’m 19 and it was an honest mistake and I’m worried about what’s going to happen. I’ve not had a chance to contact the company that cashed the check since they were closed when I found thst it had been mobile deposited already.

Captain Man
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bbscutt
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    Are you sure it was mobile deposited and not just a common amount that you have confused with another deposit. Does your bank record show a scanned copy of the check, so you can verify that it was deposited? How did you make a deposit without a signature? – mhoran_psprep May 29 '19 at 10:05
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    I, too, find it odd they would allow a mobile deposit without a picture of at least your signature on back. My bank requires a specific mobile deposit only endorsement as well.

    Just call the bank and explain what happened - it's a simple mistake. And tell them they should change their policies so this can't happen as easily in the future. ;)

     – topshot May 29 '19 at 12:26
  • If it's just a honest mistake, you can just try to call them later and explain the situation. Best case, you will keep the money (maybe the other transaction was something else), worst case you will just return them the money. Nothing terrible there, mistakes happen. – toto May 29 '19 at 12:41
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    @topshot FYI the "for mobile deposit only" note on the endorsement is a Fed requirement in the US, not just a requirement of your FI. That said, anecdotally, there are many institutions that do not enforce the rule well or at all. – dwizum May 29 '19 at 13:20
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    How can the bank not detect the issue. Check number, routing number and account number all together make it unique. – riya May 29 '19 at 15:53
  • @dwizum Where is that regulation documented? – chepner May 29 '19 at 16:28
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    @dwizum "For mobile deposit" isn't strictly required by the Fed. What it does is it prevents a claim by the institution with the paper check from claiming money back from whoever accepted the image deposit. A bank can accept an image deposit without the endorsement if they accept the risk of this happening. – user71659 May 29 '19 at 16:37
  • @chepner 12 CFR § 229.34(f) (2) and (3), also known as Reg CC – user71659 May 29 '19 at 16:41
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    @chepner, it was a revision of Regulation CC which went into effect in July 2018, and I suppose user71659 is technically correct, it's not a strict requirement - it just changes the ability of the depositing bank to make an indemnity claim. – dwizum May 29 '19 at 16:46
  • @dwizum That's the point I was wondering about, given a quick read of Regulation CC. I thought maybe there was another regulation I was unaware of. – chepner May 29 '19 at 16:47
  • I suppose my first comment was poorly worded. My point was that the idea of a "for mobile deposit only" endorsement wasn't something that individual FIs were coming up with on their own; it's being driven by Fed policy around claims. Prior to this revision, there was no significant incentive for a bank allowing RDC to require a restrictive endorsement since the RDC bank would lose by default in a dispute. Now, with the new regulation, there's incentive to actually require it since doing so can actually get you protection. In essence, an FI must require the endorsement if it wants protection. – dwizum May 29 '19 at 16:54
  • Since you write "check" not "cheque" I assume you are in the USA, but with the UK banking system would be very surprised if this was even possible, unless you did both transactions within the same working day - in which case claiming you "forgot" you had paid in the cheque electronically would not sound very convincing! – alephzero May 29 '19 at 17:24
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    @perennial_noob Your edit here was inappropriate. It significantly changed the meaning of what became the second paragraph. Originally, the text stated that the OP took the check to a different check cashing place, a "check into cash", not their bank. You changed the wording to mean that they took the paper check to their bank. That has lead to confusion in these comments and makes statements about the check cashing place confusing in the answers that existed prior to your edit and makes the answers that were added after your edit not account for having the deposits at two different places. – Makyen May 30 '19 at 04:15
  • @Makyen - the OP hasn't subsequently clarified any comment/question anywhere, so I take it you attempted to read the unedited post to resolve a confusion you had. I must say I now did the same thing and it still made no sense until I re-read "check into cash" in your comment. This was not how the OP had it and it read very frantic. I'll edit to add the quotes but the answers took that into account (maybe not the newest ones but the newest ones can refer initial answers). – perennial_noob May 30 '19 at 04:48
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    @perennial_noob I agree, the original could have been clearer. However, the primary issue is that both answers existing when you edited had interpreted the question as the paper check was taken to a check cashing business, not the OP's bank. Editing the question to say the OP deposited the check twice to their bank invalidates parts of those answers, making them sound strange when reading them. It's very important when editing that you make sure your edits don't invalidate answers. Please double check for that when editing. Even the question OP doesn't get to edit to invalidate answers. – Makyen May 30 '19 at 06:30
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    Unrelated to the question maybe, but how do you not remember cashing a check for a loan received? If you're applying for a loan, that money is earmarked for some expense. You don't just apply for a loan and tuck that check into your sock drawer for a rainy day. That money needs to be repaid with interest. Is this actually a case of a 19-year-old thinking he can scam a bank? – Steve-o169 May 30 '19 at 14:21
  • @dwizum it seems missing a signature is more of a problem than missing "for mobile deposit". It seems strange the original deposit was valid. – iheanyi May 31 '19 at 19:56
  • @alephzero does the UK banking system allow depositing checks without a signature? If not, I can see how claiming you "forgot" could be believable since the check obviously looks like one that has not been negotiated. – iheanyi May 31 '19 at 20:00
  • @iheanyi I've used mobile deposit for many checks. The instructions say to write something on the check but I never have and it's always accepted. My guess is nobody actually looks at it unless there's a problem with the check, the same way no one checks that the signature is actually yours until there's a problem. – Kat May 31 '19 at 20:13

4 Answers4

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The best method would be to contact the check cashing place, and have them stop processing. Whether or not that's possible depends on the actual company you used. Talking to the company that you got the loan from will also probably work, and will usually involve you giving the full value of the check back. (That's including whatever the check cashing place took as a fee, so you will be out some money this way.)

This is a common mistake, and as long as you aren't intentionally double-depositing to steal money, you'll just have to give the money back. There's no real need to panic over this, just fix it.

user3757614
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This type of situation is all about initiative. If you contact them first, it looks like an honest error you caught. If they discover it and contact you first, then it looks like you tried to get away with something and they caught you.

Of course, in the latter case, you will protest that it was an honest mistake, but that just sounds like you're saying that because you don't have any other options now that you got caught. So you will have zero credibility.

So Right Now do whatever it takes to get caught on tape trying to tell them ASAP. If they are closed and don't have voice mail, I would write a note, put it in an envelope, and slide it under their door, making sure to get caught on CCTV doing so. That will put a timestamp on your efforts.

Unless this was a tax refund loan (which is often offered routinely to people who e-"file" with certain companies), your statements do have a credibility issue. One gets a loan for a reason, eagerly awaits the check, and applies the money to the reason. It's rather improbable to "forget". That, plus cashing it once with your bank and the second time through a check cashing place, raises some suspicion about your motives. All the more reason to take the initiative and get recorded with the earliest possible timestamp, trying to honestly rectify the situation.

Only as a standard disclaimer, I mention those online scams where "employers" "pay" you to cash checks into your personal bank accounts and send money on to them. We have many Q&A on that, read up if it applies to you.

Harper - Reinstate Monica
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    I suspect the loan was a refund anticipation loan, which is somewhat of a different thing than a regular loan. If so, note that they are not in your best interest, as long as you can afford to wait for the real refund. Most check cashing places are also terrible. – user3757614 May 29 '19 at 15:22
  • @user3757614 Good point given the timing. I'll tone it down. – Harper - Reinstate Monica May 29 '19 at 15:26
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This is check fraud, be careful, and don't run back to the bank without planning (but plan fast)

That is likely not as bad as it sounds. People occasionally bounce checks (also check fraud), and a single slip-up will likely be forgiven if you are proactive.

Before going to the bank and explaining the situation

Make sure you actually did mobile deposit the check (1st time) then re-deposit it in person (2nd time). Most banks will have check photos available online. Print this out and bring it to the bank. They should have an image of the 2nd deposit on file. Don't go to the bank without the image of the first check. Banks are required to maintain records for 5 years

Don't go to the bank without a check or a repayment plan

If you can just withdraw the extra money and write a check back to the bank that's the best plan. It's unlikely any bank would do anything but take the money back. Remember to get the amount in writing from the first bank and take a photo of the check before you deposit it back. If you cannot do this, go in with a repayment plan.

Keep all the records on file. If there is an issue after-the-fact, you want to be in a position to prove you fixed the mistake.

NOTE: Check was cashed at a "Check-2-Cash" place, not a bank

This will not work in your favor. These places are shady, which makes it look more like an intentional deception on your part. You still need to go in with a plan (see above), but this means you should move twice as fast to make sure this gets resolved.

And whatever you do, DON'T USE ANY PLACE WITH A NEON SIGN TO CASH A CHECK! Use a bank!

sevensevens
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    FYI, the first time he used mobile deposit. The second time he didn't use mobile deposit again (which would've been caught instantly)... he used a pink neon check cashing shop. That combo creates the appearance of intent to double-cash and a naïve scam to rip off the cashing shop. Hence my "fleeing the balrog in Moria" urgency to get seen telling them. – Harper - Reinstate Monica May 30 '19 at 01:19
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    FYI: You might want to look at the original version of the question. That version states that the OP took the paper check into a check cashing service, not their bank. In other words, the OP cashed the check at two different places. – Makyen May 30 '19 at 04:13
  • Check fraud implies intent, but if something slemms like intent, it might be useful to prove that it wasn't intent. – glglgl May 31 '19 at 08:15
  • @glglgl: slemms like? – Quora Feans May 31 '19 at 10:17
  • @QuoraFeans Smells like. Sorry. – glglgl May 31 '19 at 10:29
  • @Harper how would using mobile deposit have guaranteed it would have been caught instantly? If he uses mobile deposit at bank A which somehow doesn't require a signature on the check, then mobile deposits it at bank B, he'd be in the same situation now. – iheanyi May 31 '19 at 19:53
  • Downvoting. Check cashing is a legitmate business. The only thing "shady" is the large fees they charge. They lose when checks turn out to be fake and fees are paid from the proceeds of the check. It is in their interest to be quite exacting with the checks they cash. – iheanyi May 31 '19 at 19:54
  • @iheanyi signature wouldn't matter. It prevents it because Bank A would recognize the check# the 2nd time around. Most people flow their money the same way from month to month, so I am discounting your hypothetical as improbable. Of course, I would also have discounted the second deposit being at a check cashing place; that seems weird, and suggests OP did something to get unbanked in those 2 months. In defense of 77s, check cashing places are like a slaveowner; they may not be bad, but their context is exploitive, and they choose to operate there. – Harper - Reinstate Monica May 31 '19 at 20:18
  • @Harper Check numbers are for the convenience of the drawer do not affect the validity of a check. It is possible to issue duplicate check numbers. – user71659 May 31 '19 at 22:04
  • @user71659 yeah, but it won't deposit. I've tried accidentally (was a $2.49 dividend check, but whatevs). – Harper - Reinstate Monica May 31 '19 at 22:08
  • @Harper I'm not sure what you mean by "signature wouldn't matter". Mobile deposits require the check be signed. That's part of the basic checks to accept the deposit. I have accounts at 7 different banks and have not been "unbanked" in over 25 years. Most people I know who are not originally from where I live similarly have accounts at multiple banks simply because it made sense to open one locally. I regularly deposit checks at different accounts - this is not a hypothetical scenario. Check cashing is no more exploitative than a grocery. They are a middle man providing a service people need. – iheanyi Jun 01 '19 at 21:29
  • @Harper also, you can deposit multiple checks with the same number. I've written several myself and had them deposited. I've also had my bank generate multiple checks for me with the same number. – iheanyi Jun 01 '19 at 21:30
  • @Harper it wasn't purposeful, i just needed a check one day and hadn't ordered any yet for my new WF account, so I went to the bank and had them print one. A week later, same need (checks were on the way) went to bank, they printed a check again. Same number. – iheanyi Jun 01 '19 at 21:39
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The bank would most likely notify you via mail to tell you that you cashed a check on mobile deposit and then cashed a check at the ATM. The letter should show your balance or the the two deposits with one cancelled.

Diego Alvarez
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    FYI: You might want to look at the original version of the question. That version states that the OP took the paper check into a check cashing service, not their bank. In other words, the OP cashed the check at two different places. – Makyen May 30 '19 at 04:13
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    This is what would happen if two attempts were made to deposit the check. But OP didn't deposit it, he cashed it. Not the same thing. (To be clear, there is no such thing as "cashing a check on mobile deposit") – Ben Voigt May 31 '19 at 21:18