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Home >> Accounts >> Certificates of Deposit
Acquiring Bank Refuses to Honor CD
My mother purchased a CD in 1995. Since then the bank was bought by another bank. She forgot about the CD, until she found it among some old papers. She has tried to cash it in, but the bank claims there are no records that it was purchased or redeemed. The CD was not turned in to unclaimed money. Please advise how she can get it cashed. The bank who bought out the original bank refuses to make the CD good. She has the original CD note.
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 The problem here is that the current bank, which acquired the assets of the closed bank, has no record of the CD being issued. If they don't show it as issued, there would be no record that it had been cashed or escheated to the state.
You have the original CD, but it was a common practice at many institutions to cash these for customers without them having the actual CD itself. If they were not negotiable instruments, the bank had to depend only on their records. If the CD was cashed in or rolled over into another account, the current bank may not have those records.
If you are sure the account was never cashed in or rolled into another account, our best advice is to contact an attorney. You'll have to find out what entity is now responsible for the deposit account and pursue the matter with them. The new bank should have purchased all the deposit accounts, but that isn't always the case. You'll have to prove this was a deposit they should still be holding.
Published on BankingQuestions.com 4/06/09
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