If a bank or other financial institution mistakenly places a moderately large amount of money in a person's checking and the person uses about 500.00 can the bank demand that the person pay the money back? This happened to a friend and she wanted me search the net to see if anyone knows the answer to her question. She needs to know if she is liable for that 500.00 even though she is returning the unused portion of the money and had no idea how the money came to be in her account.
2006-11-18 06:37:18 · 10 answers · asked by ladybugg46 1 in Business & Finance ➔ Personal Finance
Yes they can demand it back and take it right out of your account or sue you for it if you refuse to return it or close your account...etc...HOWEVER....had they given you cash at a teller window and you walked out and they realized afterwards they could not ask you for that money because there is no paper or electronic trail.
2006-11-18 06:46:39 · answer #1 · answered by cereal_killer034 5 · 0⤊ 0⤋
Your freind should had known something was up when she had that extra money in her account, even if it was a bank error. In retrospect, the bank will just take the money back out of her account, even though it was there error. The money wasn't hers to spend as she wished anyway. When the bank takes that $500.00 back out, and it overdraws her account, she is liable for the overdraft fees. Whatever she spent that money on, if she went to the mall for example, return whatever she purchased and place that money back in her account.....the money wasn't hers to begin with. She will not be prosecuted or anything cause she didn't do something to mistakenly get it there, but whatever part she used of that money, she owes it back to the bank. I hope that this helps you!
2006-11-18 06:46:25 · answer #2 · answered by shecatdevil 2 · 2⤊ 0⤋
If you received funds and they are not yours, be prepared for them to debit your account. Most States have unjust enrichment laws which basically means if you receive funds that are not yours, you are required to pay them back. You would be doing yourself a favor if you brought this to the Bank's attention, and 'fess up now. If you don't you could end up in an overdraft situation and have to pay them fees. Do the right thing.
Follow Up: If you did notify them and they claimed there was no error, I would let everything clear the account and then close it. If this bank has done questionable things in the past, I would definately take my banking relationship elsewhere! There are plenty of other reputable banks out there just begging for your business. Good Luck.
2006-11-19 15:23:54 · answer #3 · answered by gffaplaya 2 · 0⤊ 0⤋
I can speak with personal experience. The bank placed $2000 in my account. I sat on it for 4 to 5 days waiting for them to take it back. Since they didn't, I withdrew it all and paid off all my bills. It was really nice. Now the reality hit. The Bank contacted me advising me to call them immediately. After making contact they advised me that they needed the money back because of their error they placed those funds into the wrong account after someone else applied for a $2000 loan. Since I didn't have the money anymore because I was bill free. I had to do a loan. To this day I still pay on that loan. So yes, eventually she will have to pay it back.
2006-11-18 07:29:29 · answer #4 · answered by Michael P 2 · 0⤊ 0⤋
Hi lalady,
Yes she'll need to return the money cause the banks are protected legally when that happens. She knew it wasn't her's to begin with so she had better borrow the money is she doesn't have it or make payments to the bank!
Good luck to your friend this is always a tricky thing that does happen. Have a good day! :0)
2006-11-18 06:43:16 · answer #5 · answered by dousmokedoobies69 6 · 0⤊ 0⤋
it is the responsibility of the account holder to keep track of the finds in the account, to know if funds are available for purchases, etc....if there seemed to be an over large sum in the account, your friend should have contacted the bank prior to spending money that was not hers.
2006-11-18 06:46:40 · answer #6 · answered by juanita s 1 · 0⤊ 0⤋
Yes, the money is not hers and will have to return it. BUT
a) She can keep any interest earned on it and
b) She can ask for a reasonable time to pay it back. Say, $100 pm?.
2006-11-18 08:11:09 · answer #7 · answered by Anonymous · 0⤊ 0⤋
if the bank will withdraw it from her account if she knew that she didnt have that much in her account she shouldnt have used it.if she used 500 she will have to replace that.
2006-11-18 14:13:14 · answer #8 · answered by Anonymous · 0⤊ 0⤋
UK: (and most likely elsewhere): You cannot gain from anothers mistake. If you know that the cash is not yours, you steal it and here you could, and probably would,be charged with Theft.
2006-11-18 06:45:03 · answer #9 · answered by thomasrobinsonantonio 7 · 1⤊ 0⤋
yes it is due back, but any interest earned on the money can be kept
2006-11-18 06:45:47 · answer #10 · answered by Anonymous · 0⤊ 0⤋