Non-Authorized Bank Account Usage

[shyllei]

What is the name of your state (California)?

Last week I noticed 2 checks that had posted to my checking account that were not authorized by me. Upon further investigation, it turns out that someone had printed checks with my bank's routing number and with my account number, but the name on the checks and who signed the checks were not mine. I am the only authorized user and signer on the account. I am under the assumption that the bank clearly made a mistake by allowing someone other than me to access my funds.

Question is, how long do I give the bank to put the funds back into my account? The bank has already given me half of it back (1 check) because it was an electronic check. Since the other check came through the normal way, the bank said they have 10 days to investigate. And I do have a copy of this check. I'm anticipating waiting the 10 days, but should I also contact an attorney?What is the name of your state (only U.S. law)?

 

[Antigone*]

What is the name of your state (California)?

Last week I noticed 2 checks that had posted to my checking account that were not authorized by me. Upon further investigation, it turns out that someone had printed checks with my bank's routing number and with my account number, but the name on the checks and who signed the checks were not mine. I am the only authorized user and signer on the account. I am under the assumption that the bank clearly made a mistake by allowing someone other than me to access my funds.

Question is, how long do I give the bank to put the funds back into my account? The bank has already given me half of it back (1 check) because it was an electronic check. Since the other check came through the normal way, the bank said they have 10 days to investigate. And I do have a copy of this check. I'm anticipating waiting the 10 days, but should I also contact an attorney?What is the name of your state (only U.S. law)?

What for. The bank will make you whole. Wait the 10 days and you should be fine.

It would be beneficial to you to close this account and open a new one. I also suggest that you continue to use the tools the bank offers you. Online banking is a great way to check your account for unauthorized access.

Unfortunately in this day and age, if the checking account number and routing number matches an item coming through the various bank systems and hits your account, and if the funds are there; the bank will pay the items. It is up to you as a customer to let the bank know of any authorized debits.

 

[shyllei]

I've already closed the account and opened a new one. I've also reported it to the local police department, and reported it to the company where the check was written. I also place a fraud alert with the credit bureau's.

Even in this electronic age, there should be resources in place when things like this happen. It couldn't have been more plainer. If the name on a check doesn't match the name on the account, something is wrong. I have internet access, but only go in twice a month. What about people who don't have internet access? Or only get their banking statements sent through the mail at the end of the month? If all the bank looks at is the account number, then why do we bother filling out signature cards in the first place?

BTW, the bank had to transfer money from my savings account to the checking account in order to cover these checks. Usually I would get a letter through the mail telling me I was overdrawn, but nothing was sent. And I didn't find out about this happening until one week after the bank paid the checks.

 

[Antigone*]

I've already closed the account and opened a new one. I've also reported it to the local police department, and reported it to the company where the check was written. I also place a fraud alert with the credit bureau's.

I am glad to hear that you have done all those things to protect yourself.

Even in this electronic age, there should be resources in place when things like this happen. It couldn't have been more plainer. If the name on a check doesn't match the name on the account, something is wrong.

My financial institution clears over 20 million items a night in Southern California alone. This is all done electronically. MICR lines are read and items are posted. Human eyes generally do not see items posting nightly. On occasion when an amount looks odd or suspect an alert is triggered and a fraud analyst will further investigate.

I have internet access, but only go in twice a month. What about people who don't have internet access? Or only get their banking statements sent through the mail at the end of the month?

You would be better served and would catch any potential fraud sooner if you looked at your accounts more often. I look at mine daily. Consumers who do not have internet access have two statement periods in which to inform the bank of any errors or fraud. If the two statement periods have passed the bank is no longer obligated to refund the customer.

If all the bank looks at is the account number, then why do we bother filling out signature cards in the first place?

Signature cards have a few functions. #1 they function as your agreement with the bank to do business. #2, they are checked often when someone wants to cash an item in a banking center. #3 they serve as evidence of your signature for comparison purposes against potentially fraudulent items.

BTW, the bank had to transfer money from my savings account to the checking account in order to cover these checks. Usually I would get a letter through the mail telling me I was overdrawn, but nothing was sent. And I didn't find out about this happening until one week after the bank paid the checks.

There is nothing wrong with that. If fact that tells me that your overdraft worked as it should have worked. Your notified your bank in time to have your claim honored.

I do suggest you ask your bank to reverse any fees you incurred as a result of the fraud. I applaud again for all the actions your taken and the people you notified.

take care, ♥tigi

 

[shyllei]

So, does the bank really have 10 days? Or am I getting the run around? I'm a bit worried that the bank is holding out on me until some other deadline occurs and then I have no recourse to take. Already, it seems that after 3 days I hadn't even been placed into their investigation system.

And then the bank person says, they aren't even suppose to tell me that I can get the funds back.

 

[Antigone*]

So, does the bank really have 10 days? Or am I getting the run around? I'm a bit worried that the bank is holding out on me until some other deadline occurs and then I have no recourse to take. Already, it seems that after 3 days I hadn't even been placed into their investigation system.

And then the bank person says, they aren't even suppose to tell me that I can get the funds back.

Be patient. You will be fine.

 

[swalsh411]

10 days is entirely normal. Of course your bank isn't going to absolutely guarantee you that you will get the money back until they have completed the investigation. Calling them every day is not going to speed up their process and will only cause you stress. Give them the 10 days and then make another inquiry.

 

[shyllei]

Thought I would let you know that my credit union is now claiming that I have to wait 60 days (not the 10 I was originially told) until I can be refunded (hopefully) the amount. Still don't know why they are not taking responsibility for the mistake that occurred due to their inefficiency. I say this because I was contacted by a collections agency due to the electronic transfer that was sent back. The credit union didn't communicate with the store on why the electronic transfer wasn't honored. I would think it would be easy enough to say "identity theft" as when their are no funds they say "insufficient funds." No wonder the banking industry is in trouble if this is the awful service they are providing.

 

[Antigone*]

Thought I would let you know that my credit union is now claiming that I have to wait 60 days (not the 10 I was originially told) until I can be refunded (hopefully) the amount. Still don't know why they are not taking responsibility for the mistake that occurred due to their inefficiency. I say this because I was contacted by a collections agency due to the electronic transfer that was sent back. The credit union didn't communicate with the store on why the electronic transfer wasn't honored. I would think it would be easy enough to say "identity theft" as when their are no funds they say "insufficient funds." No wonder the banking industry is in trouble if this is the awful service they are providing.

What reason did your credit union give you for the length of time in crediting you back?

 

[shyllei]

What reason did your credit union give you for the length of time in crediting you back?

The last person I spoke to who was supposedly the VP of Finance (whatever that means) said that was the process. When I asked when the 60 days started, he said that it would be the day I filed if it was before 2pm and the day after I filed if it was after 2pm.