|
 |
Home >> Checks/Money Orders >> Checks You Received
Bank Mixup
A bank accidentally deposited a check that was not made out to the bank, but to another bank to open a CD. Apparently the post office delivered the check to the wrong bank. The amount of the check was $40,000. The bank cashed the check for $40.00. The bank subsequently sent a bank check to the writer of the original check for $40,000, when they realized that the check was not made out to them. The check was deposited, held for clearing and then after two weeks cleared. The bank now wants the $40,000 back. What recourse does the bank have?
|
|
 Whether the bank has a valid claim will depend on what else went on in this mix-up. For example, did the bank also receive a claim for an adjustment on its first error, or did the bank pay such a claim. The bank may be proceeding on a payment in error theory, which is allowed.
If you are one of the parties involved in this mess, it would be wise to sit down with the bank to determine exactly what funds are being held by which parties and where those funds are supposed to be. If you are able to resolve the problem after that meeting, to which you should consider inviting legal counsel for your protection, perhaps everything can end up the way it should. If you are not able to resolve the issues, one of the parties may have to initiate legal proceedings to pull the courts into the process. If things get that far, someone will end up paying legal costs.
Published on BankingQuestions.com 9/04/08
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
