Bank error repercussions

H

Heavy-R

Bluelighter
Joined
Jan 8, 2003
Messages
62
Are there any sort of repercussions for not reporting a bank error, large or small? This is on a personal account, not on a business, if it matters.
 
There are no repercussions for not reporting them, but I wouldn't expect to keep the money. They'll find out and they'll want it back.
 
Originally posted by Alf:
There are no repercussions for not reporting them, but I wouldn't expect to keep the money. They'll find out and they'll want it back.
and they will get it back, even if you've already spent it...
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I read the previous thread. This money came in the form of a 4 digit loan payment, a month and a half ago. Anyone know where I would find some sort of list of the laws that people are bound to when joining a bank..
And now that I think about it the bank is a credit union.
 
According to the Uniform Commercial Code, you are obliged to report bank errors.
 
Taking money that you know isn't yours and using it is fraudulent. It would be hard to get the cops/jury/judge to believe that you didn't notice an extra 500 or 1thousand bucks in your account. Someone will notice it missing from theirs most likely.
 
Originally posted by PottedMeat:
According to the Uniform Commercial Code, you are obliged to report bank errors.
I don't have my copy of the UCC handy, but I think I know what provision you have in mind--the so-called "bank statement rule." As I recall, the bank statement rule just says that if I don't examine my bank statements and fail to report an error in the bank's favor within a certain period of time, I'm out of luck. But I'm pretty sure that the bank statement rule does not impose an affirmative duty on anyone to report errors.
Now, if the bank accidently puts an extra $10,000 in my account, I'm pretty sure that I can't use the money if I know that it's result of a bank error. But I don't think the UCC puts any obligation on me to inform the bank. Maybe something else in the law does--I'm not sure.
[ 13 January 2003: Message edited by: matt1978 ]
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^^^^
I'll drag out the old UCC and get back to you. However, I'm pretty sure you are obliged to report ALL bank errors. I do know that if the bank accidentally puts a $1,000.00 credit on your account when you in fact deposited $100.00; you will have to return the money when the bank discovers the errror. They will eventualy discover the error.
 
I don't think it should be the payee's responsibility to report bank errors.
Corporate banking is a huge, money-grubbing machine, with disproportionate interest rates, loan sharks and debt collectors readily at their disposal.
I don't think it makes sense to expect a faux pas on their part to play on the morality of their victims.
If they seriously want $2 for every time I use a bank machine, or .50 every time I use my debit card, then I'll consider a bank error backpay for all the money they've taken.
Bastards.
 
Bottom line, no you wont be arrested but the bank will probably figure it out sooner or later and you are obligated to pay it back.
UCC 4-407 basically says, if the bank f-cks up, it will get its money back to prevent "unjust enrichment". (Arguably, wrongful credits are not covered by this section but the unjust enrichment theory applies regardless)
 
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