Legal Question in Banking Law in California

A friend's credit union authorized a large withdrawl from her account without her approval to a woman that came in with a note saying my friend had sent her to make the withdrawal in the sum of $7,500. My friend told the C.U. she hadn't sent anyone. They showed her the note and picture of the woman that she didn't recognize. She kept her hand over her nose and mouth, making it impossible to identify her. They had my friend sign her name 5 times, and the writing didn't match. They supposedly investigated and determined my friend had authorized the transaction, which she didn't. Therefore, they won't give her her money. They hadn't even filed a police report. She filed one almost 4 weeks after it happened. What can she do to get her money?


Asked on 2/28/10, 9:22 am

1 Answer from Attorneys
Deborah Barron Barron Law Corporation

You can sue for up to $7500 in small claims court without an attorney. If the Credit Union contests the claim and wins, you can hire an attorney and file an appeal which will give you a new trial in the small claims court. When an attorney is involved, you usually get a real judge to hear your case rather than an attorney pro-tem judge. The only way a bank might release funds to a third party would be with a power of attorney from you, not with a note. This sounds like negligence on the part of the credit union. [email protected]

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Answered on 3/06/10, 10:49 am


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