My neighbor recently changed banks (about 3 weeks ago.)She phoned the bank over a week ago to let them know she had not received her ATM card or her online password.The ATM card was supposed to have been cancelled and a new one issued.She got paid, direct deposit, Friday night. She went to the drive through Saturday morning to cash a check and there was only $32 left in the account.The money came out in $60 increments via EFT overnight - not with her knowledge.She has reported, in person at the drive through the error. She also called the stolen ATM line, again.there are no planned electronic withdrawals.what else should she do?and how long does a bank usually have to replace funds?peace & unauthorized transferst
This is covered by Regulation E, passed by Congress and enforced by the Federal Reserve. The exact procedure depends on the bank, but most banks go with the most lenient procedures allowed under Reg E, so that's what I'll describe here. There's a rather legalese description of the regulation at http://tinyurl.com/aqc3o . The good news is that your friend reported the breach in a timely manner, so she is only liable for the first $50 in unauthorized transactions. Most banks will refund that as well, especially in cases like your friend's, since this could be construed as their mistake. If it were a case of lending an ATM card to the boyfriend, and he drains the account, they usually don't concede much.The bad news is that since this happened within the first 30 days of the initial deposit, they can take longer that usual to resolve the process. We're talking up to a month to get the money back.The bank has twenty business days (ten if this weren't a new account) to investigate the transaction and determine whether to credit the funds back. If they have not completed the investigation by the end of twenty (ten) business days, they have to give your friend "provisional credit," meaning that they'll give her the money and keep investigating for another 90 business days (45 if this weren't a new account). If they learn over those 90 (45) days that the transaction was legitimate, they can take the money back.This isn't required by law, but if the bank figures out that the transaction was unauthorized on, say, day three, a good bank will credit the money back immediately. That's just good customer service. I believe B of A has a policy of crediting disputed funds the next business day, a policy which I'd like to see that catch on. Twenty business days is just too long to wait when your whole paycheck has been stolen.--LaughingRavenExtreme Banker, Ret.
Banks have, I believe, 10 business days to run and investigation. At the end of that time, they either have to give you the money back, say that they won't, or say they haven't decided yet and give you the money back unless they decide otherwise later.You'd be surprised how often they may actually find that it was your neighbors fault.Btw, if it came out via an electronic transfer, and not through ATM or debit card use, she needs a whole new account. They got her money by having her *checking* account number, and they still have it.
Sorry, its early, I didn't see that Raven had already responded :).Although I still think she probably needs a whole new checking account, unless they say the funds were taken out via ATM using a stolen card.I also didn't know that as a new account, they have 20 days, not 10.
what else should she do?and how long does a bank usually have to replace funds?In addition to any phone calls she might have made to the bank, she should probably follow up with a letter stating exactly what she did in regard to telling the bank that her ATM card didn't come, etc., and cc the state banking commission.Nancy
I'd also tell her to contact her employer and tell them to stop the direct deposit immediately until everything's been resolved. I'm sure she doesn't want her next paycheck to disappear like that. The sooner she tells them, the more likely they'll be able to stop the direct deposit and cut a check instead.
I'd suggest, first get the employer to switch to paying her with a paper check, at least for the time being.If the ATM card was swiped from her mailbox, it might be good to try & talk the landlord into getting mailboxes that lock.Also - at least where I bank it is possible to have a box of checks, or probably also an ATM card, sent to the bank branch where the account was opened up. That's what I did last time. I was opening a new account replacing an old one, & I just told the teller what I wanted the PIN to be for the card.btw she may be able to get ALL the money back, if she's lucky. When I had my debit card stolen recently I did get all the money back that was taken in unauthorized debits, but there were 2 checks that bounced & that was a hassle.
**She got paid, direct deposit, Friday night. She went to the drive through Saturday morning to cash a check and there was only $32 left in the account.The money came out in $60 increments via EFT overnight - not with her knowledge.She has reported, in person at the drive through the error. She also called the stolen ATM line, again.there are no planned electronic withdrawals.**My feeling is this (theft)is one of the best reasons NOT to have an ATM card. The other is it is too easy to withdraw the money without deliberately thinking about it. I had an ATM card for about a year 20 years ago and that was a problem for me then, so I closed it.Dragon
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