Most systems today are completely automated, they'll check that the routing number is valid but not the account number the check is drawn on. Routing numbers don't change, but hundreds of thousands of account numbers are created every day throughout the US.. banks are different on how they do their internal account numbers, different algorithms are used when generating these account numbers. I work for a relatively small bank and on a normal day we'll clear 100,000 checks.
With the changes put in place after 9/11 and the Check 21 legislation float has diminished quite a bit but it still exists. Unfortunately there's just so much blue tape that banks are required to jump through that money that is fraudulently acquired takes some time to get back.
the reason this even happened is he was a good standing customer, and they did have his account information so of course they let him deposit it. it would be the responsibility of the bank that the check was drawn off of to catch the mistake. The man's bank just issues a credit to the bank that is drawn on.. it's when that bank catches the error they have to send off for a correction, this normally takes quite a bit of time.. we're talking 2-3 weeks especially in 1995.
the minute the man withdrew the cash their internal system red flags such a large withdrawal amount, this is why the bank was suddenly made aware of that transaction.
"suddenly made aware". According to the long version of the story, FICAL was made aware of the error within the 24 hour window, but did not notify Combs until almost 3 weeks later.
With the changes put in place after 9/11 and the Check 21 legislation float has diminished quite a bit but it still exists. Unfortunately there's just so much blue tape that banks are required to jump through that money that is fraudulently acquired takes some time to get back.
the reason this even happened is he was a good standing customer, and they did have his account information so of course they let him deposit it. it would be the responsibility of the bank that the check was drawn off of to catch the mistake. The man's bank just issues a credit to the bank that is drawn on.. it's when that bank catches the error they have to send off for a correction, this normally takes quite a bit of time.. we're talking 2-3 weeks especially in 1995.
the minute the man withdrew the cash their internal system red flags such a large withdrawal amount, this is why the bank was suddenly made aware of that transaction.