- Called bank and they said that Federal Reserve rejected MO for being a duplicate
LOL, this takes the cake for the dumbest comment I ever heard in this line of work. Before I thought minimum wage WM employees citing "federal regulations" was bad.
It is a bank error, most likely they scanned it twice and forgot to record it somehow. I've had NSF errors on batches of MOs before, where a careless teller scans one check twice while completely forgetting one of the others. Usually I call them up and in the back office they find the missing check.