Arbitration

[rsv319]

I am currently in a despute with my bank who "verified" and deposited a "fictitious" cashier's check. The bank withdrew the bad cashier's check from my account, with no notice, causing all my checks to bounce, as well as putting my checking account in the negative, around $12,000.00. Also, the bank has taken all funds frrom our other accounts, along with other family member's accounts, again, with no notice. "Hard Holds" on accounts also are still in place.

I've hired legal representation, but so far, no agreement with my bank has been met. They state that there was no negligence on the bank's part, and "if" we go to arbitration, the bank will countersue for the $12,000.00. The Bank also states that because of the bank's contract, they state we have no rights to a jury trial.


My wife and I continue to suffer many damages from this, for we live as "most" do: paycheck to paycheck. Our credit is ruined, and if it wasn't for our friends, who loaned us the money to pay for our exspenses, all would have been lost. All loans remain unpaid, driving us further into debt. Currently, we are in debt over $20,000 from this case alone.

I believe that aribitration agreements are one-sided measures that force consumers to give up certain advantages, including access to jury trials as well as the ability to maintain class action lawsuits.

I feel that we shouldn't have arbitration, and go straight to a jury trial. I have heard that in some cases, arbitration has been declared invalid, as well as no longer enforcable. Does anyone have any suggestions on what we can do?

Any help would be greatly appreciated.

rsv319

 

[freebird]

Can you explain what happened with the cashier's check and how this was accomplished? How can they claim a lack of responsbility for the fraud -- on what basis?

Regarding arbitration, you are correct to some degree. The bank will go after you for the money regardless of what you wish to do but first we need to understand why the bank believes it has such a good case against you.

Originally posted by rsv319
I am currently in a despute with my bank who "verified" and deposited a "fictitious" cashier's check. The bank withdrew the bad cashier's check from my account, with no notice, causing all my checks to bounce, as well as putting my checking account in the negative, around $12,000.00. Also, the bank has taken all funds frrom our other accounts, along with other family member's accounts, again, with no notice. "Hard Holds" on accounts also are still in place.

I've hired legal representation, but so far, no agreement with my bank has been met. They state that there was no negligence on the bank's part, and "if" we go to arbitration, the bank will countersue for the $12,000.00. The Bank also states that because of the bank's contract, they state we have no rights to a jury trial.


My wife and I continue to suffer many damages from this, for we live as "most" do: paycheck to paycheck. Our credit is ruined, and if it wasn't for our friends, who loaned us the money to pay for our exspenses, all would have been lost. All loans remain unpaid, driving us further into debt. Currently, we are in debt over $20,000 from this case alone.

I believe that aribitration agreements are one-sided measures that force consumers to give up certain advantages, including access to jury trials as well as the ability to maintain class action lawsuits.

I feel that we shouldn't have arbitration, and go straight to a jury trial. I have heard that in some cases, arbitration has been declared invalid, as well as no longer enforcable. Does anyone have any suggestions on what we can do?

Any help would be greatly appreciated.

rsv319

 

[rsv319]

Freedbird,

Thank you for your reply. We tried to sell our car online. The buyer sent me a Cashier's check for the car. I deposited it into my account. The Bank verified the check, depositing it into our account. I then payed my bills, bought a replacement car for my wife, and kept the rest in my account.

Then, the bank withdrew the amount of the cashier's check, (with no warning), keeping all of our money, (we had direct deposit), causing ALL the checks to bounce, destroying my wife's credit. (She was the main account holder). All accounts related to the account, were either taken or frozen with no notice.

Hard holds on several accounts still, are in effect. Our account was overdrawn $11,000.00 plus, daily fees incurred by the bank. Since all our checks bounced, we had to borrow money to pay the bills, as well as late charges incurred from bounced checks.

I was told that there were ways to declare arbitration invalid, going to a jury trial. The bank accepts NO responsibilty whatsoever. As far as customers, our bank failed us on every level possible.

We just don't know what to do. It has ruined our financial future, as well as our credit. Please reply.

rsv319

 

[Scooter]

The check was counterfeit, and as such is not a negotiable instrument, and the Bank is not responsible for the check--you are. By depositng the check into the account, by law you represent and warrant that the check is valid etc. Therefore, by depositng a counterfeit check you have breached that warranty, and the bank has the right to proceed against you for any damages it suffered, e.g., the overdraft. Sorry. Ultimately, you dealt with the guy that counterfeited the check, not the Bank, and were in the best position to spot it and protect yourself against the financial ruin you have suffered. At least thats how the law is written and it makes sense.

I echo the question as to how you ended up with the check and circumstances of its issuance to you.

As for arbitration, it has advantages to both the Bank and the customer. It is cheap, quick, and there is no right of appeal, so there is finality. There is no requirement that you hire a lawyer, so it is user-friendly. My experience with arbitrators is that they try to do what is fair, not always what is right, so there is an inherent advantage to the customer in arbitration as well. Many banks are removing those clauses because they feel it favors the customer too much.