§ 11505 Customer Payment Order Disputes

• •The customer must object within one year of receiving notice.
• •If there is no objection within that year, the bank can keep the payment.
• •This rule applies when the bank follows a payment order and notifies the customer.

A person asks their bank to send $5,000 to a contractor. The bank follows the instructions and sends the money. Later the person gets a notice that the payment was made. If the person doesn't tell the bank they object within one year, they can't later say the bank shouldn't have kept that $5,000.

The bank is allowed to keep the money unless the customer objects within a year of receiving the notice about the payment.