My employer's last three payroll checks have not cleared my bank, and were returned for insufficient funds. I recently was told by the bank that I was putting them at risk and they froze all my accounts and told us it was fraud on our part. I can't understand how that is possible when they are my payroll checks. Isn't the fraud upon my employer? Why are we being punished for something over which we had no control? We now have no accounts and we have checks out that will be returned and the bank says they won't help us. What can we do?
The facts as you've presented them suggest there was no fraud on your part unless you knew the paychecks were no good. However, the bank certainly does not want to be left with an overdrawn account if there are checks outstanding, and there is the possibility that additional deposited checks will bounce. The bank has probably frozen the account and will wait until everything settles out before closing it. If you believe the bank is holding your funds without justification, contact legal counsel.
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The facts as you've presented them suggest there was no fraud on your part unless you knew the paychecks were no good. However, the bank certainly does not want to be left with an 