How do I prove a payment was issued but never deposited into my bank account, and who is responsible for fixing it? – North Carolina

Short Answer

In North Carolina, proving a payment was “issued” but never reached an account usually requires written proof from the sender (payment date, amount, method, and a trace/reference number) and written proof from the bank (account history showing no credit and any rejection/return details). Responsibility depends on the payment method: if it was a paper check, the issuer generally must trace the check and reissue if it was never properly paid; if it was an electronic transfer, the sender’s bank and the receiving bank may have specific duties to investigate and correct errors. When the sender and bank point fingers, the fastest path is often a formal trace plus a written dispute record from both sides.

Understanding the Problem

In North Carolina, the core question is: when a payment from a military-related source is marked “issued,” but no deposit appears in the intended bank account, what proof shows the payment did not arrive, and which party must correct it. The decision point is whether the payment was made by paper check or by electronic deposit/transfer, because the proof and the responsible party can change depending on the method used and whether the payment was returned, rejected, misdirected, or negotiated by someone else.

Apply the Law

North Carolina disputes like this typically turn on (1) what the issuer can prove about issuance and whether the item/transfer was actually paid, and (2) what the bank can prove about receipt, posting, rejection, or return. If the payment was a check, North Carolina’s Uniform Commercial Code (UCC) rules for negotiable instruments and bank deposits/collections generally control issues like whether a check was paid, whether an endorsement was authorized, and what notice deadlines apply. If the payment was electronic, the governing rules often depend on the type of transfer (for example, ACH/direct deposit versus a wire transfer), and the investigation usually focuses on routing/account information, return codes, and trace results.

Key Requirements

Proof of issuance and method: A payment advice/award letter or remittance detail showing the date, amount, payee name, and whether the payment was by check or electronic deposit (plus any trace/reference number).
Proof of non-receipt/non-posting: Bank statements and a transaction history covering the full period showing no credit, plus any bank documentation showing a rejected deposit, returned transfer, or mismatch in account details.
Proof of what happened after issuance: For checks, a copy image of the front/back (endorsement and deposit bank) or a “not negotiated/outstanding” confirmation; for electronic payments, a trace result showing whether the transfer was accepted, returned, or posted to a different account.

What the Statutes Say

N.C. Gen. Stat. § 116B-58 (Record of issuance as evidence) – In certain contexts, a record showing a check/draft was issued can serve as prima facie evidence of an obligation, shifting the focus to whether payment/discharge actually occurred.

Analysis

Apply the Rule to the Facts: The facts describe a payment from a military-related source that was reportedly issued, but the bank account shows no deposit, and each side blames the other. The first step is locking down the payment method and obtaining a trace/reference number from the issuer. The second step is obtaining bank documentation showing the account did not receive or post the funds and whether any attempted deposit was rejected or returned. With those two records, the dispute usually becomes a narrow question of whether the payment was (a) never sent, (b) sent but returned, (c) sent to the wrong destination, or (d) paid/negotiated improperly.

Process & Timing

Who files: The payee (or, in a probate setting, the personal representative/executor if the payment belongs to an estate). Where: Start with the issuer’s payment office and the bank’s disputes/research department in North Carolina. What: A written request for a payment trace (ask for the trace/reference number and results) and a written bank research request for “proof of non-posting,” including any return/reject details. When: As soon as the missing payment is discovered; internal issuer and bank deadlines can be short and can vary by payment type.
Get the “end proof”: If it was a check, request a copy of the negotiated check (front/back) or written confirmation it remains outstanding. If it was electronic, request the trace outcome and any return code or confirmation of posting destination (without disclosing another person’s private information).
Escalate with a clean packet: Provide the issuer and bank the same packet: payment advice, trace/reference number, bank statements, and the bank’s written non-posting/reject findings. This forces the issue into a documented investigation rather than phone-call blame shifting.

Exceptions & Pitfalls

Wrong account/routing details: A single digit error can cause a rejection/return or a misdirected deposit; the trace result usually reveals whether the payment was returned or accepted.
Check negotiated by someone else: If a check was cashed or deposited with an unauthorized endorsement, the key evidence is the back image and deposit bank information; delays can make recovery harder.
Probate authority issues: If the payment belongs to a deceased person’s estate, the issuer or bank may require estate appointment documents before discussing details or reissuing funds; missing paperwork can stall the fix.

Conclusion

In North Carolina, proving a payment was issued but never deposited usually requires two written records: the issuer’s trace/issuance proof and the bank’s proof that no credit posted (or that a deposit was rejected/returned). Responsibility depends on whether the payment was a check or an electronic transfer, but the practical next step is the same: request a formal trace from the issuer and a written non-posting/research report from the bank as soon as the missing payment is discovered.

Talk to a Probate Attorney

If a payment tied to an estate or beneficiary claim was issued but never showed up—and the sender and bank are blaming each other—our firm has experienced attorneys who can help organize the proof, identify the right process, and protect timelines. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.