We have thirteen accounts at a local bank. All of them are for different businesses. There was a judgment obtained against me personally, and the bank withheld funds from my business accounts and a trust account, in which I was the fiduciary listed on the trust and business accounts. All have EINs. I am the authorized signer for LLCs and president on corporate accounts. How could they do this? Now the bank says they are sorry for the mistake. What should I do about the bank's mistake? I like the bank and have been doing business with them for years. Do I need to report them for the mistake, and can they get back the funds they released in error?
You said they apologized for a mistake. It appears that someone in the bank made the error of taking funds for the attachment based on signature authority rather than ownership. That reveals inadequate training on the bank's part.
It's reasonable to expect immediate return of the incorrectly transferred funds, regardless of whether it will take the bank time to retrieve the funds from the court, even if the bank can't get the funds back. You or your attorney may have to help matters along by objecting to the transfer in court.
You should also expect an apology for the inconvenience from a bank official, and then move on. Your bank knows it messed up badly on this matter, and should realize that you could take the difficult step to take your business elsewhere. Just remember that you always have that option.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
You said they apologized for a mistake. It appears that someone in the bank made the error of taking funds for the attachment based on signature authority rather than ownership. That reveals inadequate training on the bank's part.