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Home >> Scams/Fraud
$37,000 Stolen, yet Credit Union in Denial
I recently had an employee who was withdrawing cash out of my account without being on the signature card. This employee would tell the ladies at the credit union that I needed cash and that I gave her permission to withdraw it. They would then give her cash and she would sign her name on the withdrawal slip, so I have proof she was the one. Basically, the girls thought they were doing me a favor while actually they were helping this employee steal money from me. She also forged checks out of the account. I filed a claim with the credit union for the checks and cash withdrawals nearly seven months ago, and have gotten nothing but a pile of lies. At first, they said they would reimburse me for the checks, but not the withdrawals, because I had (supposedly) given verbal authorization over the phone one time that this employee could get cash out of the account. When I asked for proof, they ignored the request. Now they are saying that they are not covering anything, not forged checks or cash withdrawals, because their bond company denied the claim. When I asked for a letter saying that the claim was denied, the manager said she would have to get it and call me back. Today I got a fax at the business on the credit union's letterhead that reads: "You recently requested a copy of the claim letter from our Bond Company. After speaking with our Bond Company and our Corporate Attorney, we will not be able to honor your request. This information is privileged information between the Bond Company and the Credit Union. I can inform you that the Bond claim was never approved."
I have a meeting with president of the credit union tomorrow. What should I do? Am I entitled to a written denial of the claim to take to a lawyer? Are there any charges I can press for them letting someone not on my account walk in and withdraw cash?
I am a hard working twenty-eight year old who purchased the assets of my father's company last July, and between the embezzlement, forged checks, and unauthorized cash withdrawals, over thirty-seven thousand dollars was stolen from my company, and I am struggling everyday just to stay afloat.
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 To begin with, the credit union's obligation to you is not affected by the bonding company's refusal to honor the credit union's claim on them. The bond or insurance policy is in place to reimburse the credit union for certain losses it incurs, but it doesn't cover them all. Sometimes a claim is less than the deductible on the coverage. Sometimes the bond simply doesn't cover the loss for other reasons, but the credit union's inability to recover doesn't change its liability to you.
Earlier, we responded to your questions about the credit union's liability to your business for the unauthorized transactions. As we said then, the credit union has a defense to your claim for some of the transactions. You may have a counter-defense. We can't provide you with legal advice on how or whether you should pursue recovery for your business, but we do strongly suggest that you talk to an attorney.
Published on BankingQuestions.com 10/13/09
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