financial and/or legal problem...

[Bernice]

My brother, Alan, was attacked for his wallet about two years ago, and suffered a very serious Traumatic Brian Injury. It will take many years for him to recover. For a variety of sordid reasons, he did not move in with me until a couple months ago. I am trying to help him with a multitude of serious problems, and one of these leaves me almost completely buffaloed.

Since you are some of the smartest and most helpful people I know, I am asking you for your help.

My brother recently tried to open a local checking account here in Kansas. Apparently a report from Chex Systems scared the bank off.

About four years ago, a bank he was using (albeit inactively) was bought by another bank that sent unsolicited new checks to his mailbox. He never got the new checks, nor even knew that they were being sent. They were apparently stolen, and forged, and the bank held him liable because he hadn't responded within 30 days. I realize most people with any sense always open and check their bank statements, but then, my brother is not most people. And, the real issue now is what to do about it.

The bank never bothered to check the signatures against his signature card. He refused to make the bank whole on the many hundreds of dollars of forged fraudulent checks that were paid due to overdraft protection. So, the bank closed his account and quietly reported him to Chex Systems. He thought his lost $42 was the end of it, not just the beginning.

Apparently, the Federal Consumer Credit Fair Reporting Act gives immunity to banks for slander/libel, unless we can prove "malicious intent". I don’t see any malicious intent – only gross negligence and indifference.

At this late date, does the offending bank even have any legal obligation to respond to a request for comparison of signatures?

Does anyone have any ideas on a strategy to resolve this SNAFU?

Hugs,

Bernice

[DonnaT]

Seems to me the bank had an obligation to check the account when the overdrafts began. A red flag should have been raised.

Many banks have an overdraft limit as well, and if the limit is reached or the account is not brought up to date within 30 days no payments should be made on future overdrafts. I would suggest getting a copy of their written policy. No need to tell them why you want a copy, but if asked, just comment that you are thinking of opening an account there.

Your brother needs to show that his bank failed to exercise ordinary care. the failure of the bank to examine a check will not constitute a lack of ordinary care if the failure to examine was in accordance with the bank's internal procedure; and that procedure does not vary unreasonably from general banking usage.

If the bank has violated their own policy, you may have grounds to sue the bank in order to get them to remove your brothers name from the crdit report. Especially if it is clear that he did not write the bad checks.

See https://www.consumerdebit.com/consumeri ... /index.htm for more info on Chex System

Your brother may try an online bank, such as
http://www.everbank.com/main.asp?fid=eb ... erID=11566

[SilverLady(SO)]

Bernice - -

DonnaT gave some excellent recommendations - - however, speaking as a 'retired' paralegal, you should also contact an attorney to discuss this case. Each state has a Statute of Limitations which governs how long a person has to file a law suit, and there are various Limitations depending upon the type of case.

Most states have a 2-year Statute/Limitations. However, since this bank *should* have been with the FDIC, the Federal Statute/Limitations may be longer.

You definitely need to discuss this with an attorney; most will give you a free, basic consultation - - but don't delay!