Bank Violated "Passbook Required"

[mlarsen]

What is the name of your state? Maine

Problem 1:
My (now ex) boyfriend and I opened a joint passbook savings account. We opted for that type of account because we were told that no money transaction could be made without the passbook being physically presented to the teller. We decided that the passbook would be in my control and if either of us needed to make a withdrawal, it would be me that took the passbook to the bank for the transaction.

When we split up the remaining balance was going to be divided. When I went to the bank for the withdrawal of approximate $5000 balance I was told there was only a few hundred in the account. An investigation by the branch manager showed that on several occassions, at that branch and one other, money transfers were made from the passbook savings into his checking account. I was told that should never have happened but a 'glitch' in the system placed the "Savings Passbook Required" statement futher down the screen when doing a transfer than it would if trying to make a withdrawal and apparantly was missed by the tellers.

This was a few months ago. The manager said she would futher investigate, consult with her legal department about the matter and contact me. I've not heard anything from the bank.

Do I have any recourse against the bank? How would I proceed?

Problem 2:
Same boyfriend; same bank....in May 2005 we requested that I be added to his business checking account. We filed the paperwork at the bank and the request was denied (I owed the bank money on a recent overdrawn account). The other day I received a collection notice for the business account which has been charged off. It was mailed to me at my parent's address which I've not used in 6 years. Now the bank says I've been on the account since May 2005 and produced the paper we filed when we were told I could not be added. I have never signed a check on that account and the statements/notices have always come addressed to the business in only my ex's name.

Anything I can do about that?

and

Thanks!What is the name of your state?What is the name of your state?

[VeronicaLodge]

wow this sounds like a really messed up bank, who is it? i want to make sure I never use them!

[Debt Guy]

This was a few months ago. The manager said she would futher investigate, consult with her legal department about the matter and contact me. I've not heard anything from the bank.

I'm guessing you are not going to hear anything else and the bank wants it to just go away quietly. If this has been several months, that is exactly what you are allowing to happen.

You need to either just write this off as experience or get in their face.

I'm not sure where the law lies in this matter. You would need to read the account agreement and see what it says. You may wish to talk to an attorney. At minimum, you need to get your side of this story documented. I would suggest a long detailed letter to the general counsel of the bank asking for a written reply.

I have never signed a check on that account and the statements/notices have always come addressed to the business in only my ex's name.

I don't know who is worse here -- the bank or your ex.

About all you can do is refuse to pay. Again, this needs to be reduced to writing. If push comes to shove and you end up in court, it is hard to say what the judge would do.

A bigger concern for you is whether or not your ex has been taking care of his withholding taxes. The IRS can come back on anyone who had signatory authority over that business checking account. Pucker up if that happens.

[tranquility]

I agree with Debt Guy, you need to to deal with this up front. Unless there are some things not said, it seems like the bank is being a little too aggressive. Facts are important. It seems best to see an attorney.

[mlarsen]

You may wish to talk to an attorney. At minimum, you need to get your side of this story documented. I would suggest a long detailed letter to the general counsel of the bank asking for a written reply.

I will start with the detailed letter to the bank. Until I am financially back on my feet I really can't go with an attorney unless absolutely necessary. I just didn't know where to begin or to whom I should write. This was a big help! Thank you.

I don't know who is worse here -- the bank or your ex.

Hopefully, I'll be out of both relationships soon. This has been a painful (and very expensive) learning experience.

About all you can do is refuse to pay. Again, this needs to be reduced to writing. If push comes to shove and you end up in court, it is hard to say what the judge would do.

Avoiding court would be great but maybe the judge would take into consideration the fact that I never, in 3 years, executed signatory authority on that account (because I never believed I had it). Legally, I don't know if I can prove I was denied although shouldn't the bank records reflect that somewhere? And I can't say whether or not my ex would back me up on that since that would admitting the debt is fully his. I will put this in writing to the bank. Should I send this to the same person as the first complaint or to the bank collection department?

A bigger concern for you is whether or not your ex has been taking care of his withholding taxes. The IRS can come back on anyone who had signatory authority over that business checking account. Pucker up if that happens.

I could use clarification on this! By withholding taxes are you meaning what he would hold and submit from employees or his personal income tax? He has no payroll and his business (I believe) is done as a Schedule C to his personal income. So if it's payroll withholding I should have nothing to worry about but if it is the other, well, that could be a problem!! In that case is it Pucker up and get ready for a big drawn out battle or Pucker up and accept I wouldn't win against the IRS....oh, boy!

[mlarsen]

Originally Posted by tranquility

I agree with Debt Guy, you need to to deal with this up front. Unless there are some things not said, it seems like the bank is being a little too aggressive. Facts are important. It seems best to see an attorney.

The only thing I did not mention was in regard to the collection letter. I did call the bank's collection department and was told that all the mail sent to my ex had been returned. The mail was going to where we used to live and the bank did not have his current address and phone number. Guess he didn't take care of mail forwarding either.

I don't know how they found the mailing address they used for me; I've not lived there for several years. I've also had a legal name change since the original request was filed with the bank.

After I spoke with the collection department, I went to the bank and closed the account I had (under my current name). I was advised not to have any bank account until this is resolved because it could be possible for the original bank to have another bank's account frozen for the collection amount. Even if that is not true, I will not be able to open an account anywhere else until then because it will show up when the new bank runs their credit check.

The more I'm thinking of this, the more I'm realizing that I just need to get an attorney. Tomorrow I will be calling the local legal aide group to see if they can handle this - if not I'll at least go for a consultation.

Thank you and Debt Guy for taking the time to give some sound advice it is really appreciated!

[Debt Guy]

maybe the judge would take into consideration the fact that I never, in 3 years, executed signatory authority on that account (because I never believed I had it).

I think it would mean something to the judge that you never signed a check. The bank will argue otherwise. It is really hard to predict.

I will put this in writing to the bank. Should I send this to the same person as the first complaint or to the bank collection department?

I think I would send it to both. Another idea would be to file a complaint with the Better Business Bureau. Banks tend to be very conscious of the public image and the BBB might "mediate".

He has no payroll

Then you should be OK on the IRS matter. I assume you did not have any ownership in the company.

I was advised not to have any bank account until this is resolved because it could be possible for the original bank to have another bank's account frozen for the collection amount.

That is not accurate. You should close any account you have at the bank in question as they have the right to offset. Other banks are fine. They cannot levy your bank account until you have been sued and a judgment awarded in their favor. It is too early to worry about that problem.

Tomorrow I will be calling the local legal aide group to see if they can handle this - if not I'll at least go for a consultation.

Good idea. Also, sometimes you can hire a lawyer to just talk it over with you and give you advice but not actually represent you in court. You still pay for their time. You might also try the County Bar Association and ask for a pro bono referral. Sometimes, the law school at a university will have a legal clinic. call and ask.