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Home >> Scams/Fraud
Bank Cashes Check in Error; Takes No Responsibility
The IRS sent a refund check to my ex-husband for an amended return. The check was made out to my ex-husband and me, with "and" between our names. He deposited it without my signature. The bank apologized for their error, but will do nothing for me. The IRS will not return the check, stating it was the bank's error. Do I have any recourse against the bank and/or the ex-husband? As a side note, I've been divorced for 2 1/2 years and do not bank at the credit union where the check was deposited.
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 Yes, the bank made an error. It should not have allowed the check to be deposited without your signature. However, the bank is legally correct when it says it can't do anything for you. You have to pursue the problem with the IRS.
The IRS employee you talked to disclaimed responsibility and pointed the finger at the bank, but he or she was wrong to turn you away. You need to speak to someone else at the IRS who can provide you the help you require. The agency has procedures to follow if one of the joint payees on a refund check did not endorse the check and did not receive her share of the proceeds. It will take time, and you will have to complete some IRS forms to complete your claim.
When it becomes apparent to the IRS that you did not endorse the check and they can verify that you were not a joint owner of the account into which it was deposited, they should issue you a check, and look to the bank that took the first check for deposit for a refund. That is when the bank will be forced to correct its error, and will look to your ex-husband for reimbursement.
Published on BankingQuestions.com 6/18/09
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