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Should I be Penalized for Bank's Mistake?

I received a $1,700 deposit in my checking account because a teller mistakenly put the money there. I spent the money and now I am being charged for it, and the bank in penalizing me for the mistake that they made. Is this right? Should I be penalized because they accidentally put the money in my account?

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Discuss some sort of a compromise with your bank; however, you should have realized that the money was not yours. Instead, you should have notified the bank of its error as soon as you realized there was a problem. It's really not right for you to expect that the bank won't charge you for overdrawing your account by spending money that wasn't yours.

Published on BankingQuestions.com 4/02/08