Bank acct. frozen

[faithnlve]

What is the name of your state (only U.S. law)? VT My brother endorsed a check from his insurance company that was sent to him. It had the name of the company on it that did some work for him and his name. It said on the check for deposit only. My brother thought the check was for him since he was expecting an insurance check for damage to his home. The company that did the work is claiming the money was for them and my brother was to only endorse the check also. This company went to my brother's bank and told the bank to freeze his bank account. How can the bank just freeze account by someone going in there without a judgment? Plus can the bank do this? ty

 

[davew128]

What happened when you called the bank and asked them?

 

[Antigone*]

What is the name of your state (only U.S. law)? VT My brother endorsed a check from his insurance company that was sent to him. It had the name of the company on it that did some work for him and his name. It said on the check for deposit only. My brother thought the check was for him since he was expecting an insurance check for damage to his home. The company that did the work is claiming the money was for them and my brother was to only endorse the check also. This company went to my brother's bank and told the bank to freeze his bank account. How can the bank just freeze account by someone going in there without a judgment? Plus can the bank do this? ty

That is not what happened. The company to whom the check should have gone went to the issuer of the check and stated that they did not get benefit of the check.

The issuer of the check contacted their bank and their bank opened a fraud claim. The funds are being held from your brother's account and will most likely be sent back to the bank who initiated the fraud claim.

faith, you didn't get the whole story from your brother. The bank did not need a judgement in order to retrieve the funds from your brother who improperly deposited that check.

 

[faithnlve]

I am so sorry. I did not word that well. The check was sent to my brother from the insurance company. The check was to be endorsed and deposited, my brother was then going to pay the company that did the work on his house. My brother deposited the check. The check was written out to "brother and company". So I guess both were suppose to sign? Anyways, the company went to my brother's bank and claimed that the check could not be deposited until they too signed. So the bank froze all money in my brother's account. the insurance company is saying it's between my brother and this company. they paid my brother his insurance claim and they do not need to get involved now with this issue.