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Home >> Scams/Fraud
Bank Doesn't Return Funds from Wrongly Deposited
A check made out to a person not on the account was deposited into an account. The bank refuses to give the funds back to me. They also will not give the funds back to the maker of the check; therefore, they still have the money. How do I get the money back? It has been over a month and the bank has not released these funds.
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 Problems like this one might be cleared up faster if the aggrieved party (the payee on the check in your question) could go directly to the bank that took the check for deposit in error, but such is not the way the law and banking practices work. If you didn't endorse the check and obtain funds from it, the party that wrote the check still owes you the money, and that's the party you should first approach. You'll have to provide an affidavit that you did not endorse, or receive any benefit from, the check, so that the check issuer can make a claim its bank that the check was wrongfully paid.
Then that bank goes after the bank that took the check for deposit, and that claim is either paid by the depositary bank or by its customer. It's a round-about method, but each party to the transaction is liable under different parts of the law to different parties, and that requires that the funds be recovered in such a convoluted manner.
Published on BankingQuestions.com 7/08/10
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