Consumer complaint received 2025-12-30 00:00:00
Product: Money transfer, virtual currency, or money service — Money order, traveler's check or cashier's check
Issue: Fraud or scam — 
Company: FIRST HORIZON BANK
State: TN

Complaint narrative:
On XX/XX/year> I received a cashiers check in the amount of {$3000.00} from a buyer I connected with on XXXX who agreed to purchase my piano for {$1000.00}. The buyer stated that the remaining funds were intended to pay movers on their behalf.

I deposited the cashiers check at First Horizon Bank ( XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ). At the time of deposit, I specifically asked the teller XXXX whether the check would be placed on hold. The teller responded no. I was not informed that the funds were being made available on a provisional basis or that they were subject to reversal. The full amount was posted to my account and made available the following morning. At no point did the bank explain that availability did not constitute final settlement. Based on the banks response and conduct, I reasonably believed the funds were final and could not be taken back.

Acting in good faith and under that belief, I sent {$2000.00} to the mover via XXXX transfer. The receipt is attached. 
On the evening of XX/XX/XXXX, after speaking with my father, I became aware for the first time that the transaction resembled a known scam pattern. This was the first indication that I might be at risk. At that point, I transferred the remaining {$1000.00} into my XXXX XXXX account in an effort to protect myself. 
On XX/XX/XXXX, the cashiers check was returned as fraudulent, and First Horizon debited the full amount from my account. I was not contacted or informed by the bank that the check had bounced ; I discovered this myself when checking my account. 
On XX/XX/XXXX, I visited a First Horizon branch and spoke in person with the branch manager, XXXX, and the teller XXXX who deposited the check. During this conversation, XXXX stated to me, I believe you are not part of the scam. However, he then stated that the bank would not file a fraud claim because this was considered a scam and therefore I was liable.

Approximately thirty minutes after I left the branch, XXXX called me and advised that I send the remaining {$1000.00} back to the bank. I responded that First Horizon was legally obligated to initiate a fraud claim. XXXX stated that a claim had already been filed and that this was why he was instructing me to return the funds. 
I asked for the reference number for the alleged fraud claim. XXXX refused, stating verbatim, I am not able to provide that information. I pressed him on why the reference number could not be shared, and he repeatedly instructed me to call the number on the back of my debit card, without providing documentation or confirmation.

I questioned whether the claim actually existed, noting that only thirty minutes had passed since I provided all relevant information and that it did not appear possible for a claim determination to have been made in that timeframe. XXXX insisted the claim existed but continued to refuse to provide any reference number or written confirmation.

While I understand that Regulation CC allows banks to make funds available prior to final settlement, consumers reasonably rely on employee representations when directly asking about holds and risk. In this case, the banks response, immediate availability of funds, lack of clarification that the deposit was provisional, and failure to notify me that the check had bounced led me to reasonably believe the funds were final. Once I became aware of the risk, I acted promptly and in good faith.

Despite acknowledging that I was a victim of the scam, First Horizon has treated me as liable while providing inconsistent information, failing to clearly disclose that the funds were provisional, refusing transparency regarding the alleged fraud claim, and failing to provide timely notice that the cashiers check had been returned as fraudulent.

Company response to consumer: Closed with explanation