Legal Question in Banking Law in Massachusetts

I own a condo in MA that I rent out. I deposited a rent check for $1650 on 12/19/08 into my Bank of America Account. The 1650 was credited to my account. Then on 8/18/09 (8 months later) I receive a "returned item chargeback" for 1650 in my account. Reason is "Frozen Blocked Account".

So now, 8 months later, I am out $1650 and have no contact with my ex-tenant to try to recover the funds. I returned any deposits to him when his lease was up and we parted ways as, in my mind, he had paid everything to me.

Bank of America tells me there is nothing they can do and they have been giving me the runaround for the past 2 weeks that they will investigate the history of their interaction with Eastern Bank concerning this check.

I am not that surprised that the check bounced. I submitted this check for deposit on 12/10/08 for the first time to Fidelity Investments and it was returned for insufficient funds. I then spoke to my tenant and he told me to redeposit as his account had the funds now (This is the 12/19/08 deposit). I decided to submit it to BOA since I could go to a teller and not have to wait to mail the check in to deposit at Fidelity.

My issue is that it took BOA 8 months to notify me that the check had bounced and now I have no simple means to collect the rent from the tenant as I no longer have contact with him.

Is there anything I can pursue further with BOA? I feel that they at least should be the party attempting to collect the money from either my tenants bank or my tenant since BOA appears to have sat on this for 8 months.

What are my options?


Asked on 9/04/09, 3:03 pm

1 Answer from Attorneys
Warren Wood Law Offices of Warren Wood

Eight months certainly seems to be an unreasonably long time for BOA to finally notify you that this item was NSF when presented for collection. It is unlawful for anyone to tender a check which when presented for collection is rejected for insufficient funds. You can possibly locate this former tenant (there are many ways) and make legal demand on him to make these funds (and your cost to collect them) good.

Meanwhile, you may contact a consumer law attorney (and also make written complaint to the several state and federal bank regulators [do your on-line homework]) about BOA's actions. You may also find legal remedy under M.G.L. c 93A and the federal consumer counterparts.

This Office handles certain consumer disputes against banks and lenders. Initial telephone consultations are often free.

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Answered on 9/12/09, 3:26 pm


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