My wife's bank blocked a payment that she made without telling her, even though she had sufficient funds in her account. The company that didn't receive the funds then charged an administration charge and interest. The bank didn't want to reimburse this money, and said that they had blocked the payment for security reasons because the amount was unusual. Can they do this without contacting the account holder? Are they liable for the extra charges my wife incurred?
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If your wife's check was properly made out and there were sufficient available funds in her account, the bank would need some very unusual concerns for not honoring the check. Vague excuses of "security reasons" should not be enough. She should press for a definitive response.
If the bank wrongfully dishonored the check, it could be liable to your wife for costs resulting from its action. She should attempt to get reimbursed for her costs and consider contacting an attorney or filing a small claims case if they are not forthcoming. All of this hinges on whether the bank had a valid reason for not paying the check.
Published on BankingQuestions.com 5/08/08
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