Substitute Check Policy Disclosure
What is a substitute check?
To make check processing faster, federal law permits credit union and
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 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 laws 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withdrawn from your account and fees that were charged as a result of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 $2,500.00 of your
refund (plus interest if your account earns interest) within 10 business
days after we received your claim and the remainder of your refund (plus
interest if your account earns interest) not later 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 Bank of Erath, 105 West Edwards Street, Erath, LA
70533, (337) 937-5816. You must contact us within 60 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
YOU MUST SUBMIT YOUR REFUND REQUEST IN PERSON AT 105 WEST
EDWARDS STREET, ERATH, LOUISIANA
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