Altered checks have been changed without the knowledge of the check writer, and the legal consequences depend on jurisdiction. Tampered checks are often altered by changing the recipient’s name or date. In the US, altered checks are covered by section 3-407 of the Uniform Commercial Code. Banks can set time limits for the issuer to detect tampering, and a tampered check is not the same as a bounced or crossed check.
An altered check is one in which some details have been changed after it was originally written, specifically when that change has been made without the knowledge of the check writer. The legal consequences if and when this alteration is discovered depends on the prevailing jurisdiction. A tampered check should not be confused with a bounced check or crossed check.
The most likely form of an altered check is one in which the recipient’s name has been changed by a person who owns the check, meaning they can collect the payment. In some situations, the alteration may be to the amount, although this tends not to happen if the recipient and sender know each other, as the alteration will soon become apparent. It could be the date that was changed, for example, if the issuer intended the check to be postdated to avoid potential fraud, and the recipient alters the check to allow immediate cashing without delivering the relevant goods or services.
In the United States, altered checks are covered by section 3-407 of the Uniform Commercial Code. This is a standard set of regulations regarding business transactions that has been adopted into the laws of all US states. Under the UCC, alteration covers both changing what has been written on a check and adding information where the check was incomplete, for example, if the amount was left blank.
The rules mean that if someone fraudulently modifies a check, anyone who would have had an obligation resulting from that check will no longer have to honor that obligation. This means that not only does the issuer not have to pay the money, but neither the issuer nor the recipient’s bank have to act on the check. However, if the issuer’s bank pays the money on a tampered check in good faith, it may not necessarily be required to recover or return the money.
Banks can set time limits for the issuer to detect the tampering and require that the transaction be voided. The maximum time for said limit imposed by the bank is 30 days. If the bank does not have a policy, there is also a legal limit of one year for the customer to file a complaint.
A tampered check is not the same as a bounced check. This is better known as an insufficient funds case and means that the issuer does not have enough money in your account to cover the payment; If the issuer knew this when writing the check, he may be guilty of a criminal offense. The altered check also differs from a crossed check, which can only be deposited at a specific bank, rather than cashed elsewhere.
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