What to do if a bank won’t honor my claim regarding a stolen check?

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What to do if a bank won’t honor my claim regarding a stolen check?

A signed blank check was stolen from my girlfriend’s car.Then 4 months later it was deposited for $3000. I did not have this money in my account but the bank used money from my savings to cover the check. They told me the the overdraft protection was linked to my savings account. I made a police report and an investigation confirmed that this was a fraudulent activity. The DA has issued a warrant for the wrongdoer’s arrest. I submitted a claim to the bank based on the fact that this was fraud but my claim was denied. I thought bank has insurance against fraud? What should I do?

Asked on February 10, 2012 under Bankruptcy Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If the bank made a mistake in allowing the negotiation of the stolen check and refuses to make good on it, you need to contact the Federal Guaranty Insurance Corporation (FDIC) that oversees bank deposits of customers up to a certain amount and discuss the situation that has happened.

Another option is the FDIC does not help you is to sue the bank in small claims court for the $3,000 amount taken from the account and not made good on by the bank.


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