Legal Question in Banking Law in
BANK ERROR and INTERESTS
It is an online broker & bank but we only have a brokerage account
- 4 years ago we sent a wire of $50,000 on the account but this wire arrived 2 times (50,000 broker error in our favor)
- error unnoticed by both sides during 4 years
- the money was invested mainly in stocks
- during the 4 years, account value was down 40 % (stock depreciation)
- we never withdrew money from the account
- 4 years after the wire, broker found the error and withdrew the 50,000 $ without advising us nor ask our consent
-because the account is invested in stocks balance became negative
- we wired money (50000 $) to restablish the balance (thinking it is the end of story)
- Then the broker withdrew 3500 $ again without advice nor consent
- we asked explanations, broker said it was the interests and dividends of the error 50,000 wire during the 4 years
- have they the right to withdrew money without our consent ?
- there was almost no interests on the period (account invested in stock). How can they demand interests ?
- How can they ask both for dividends and get back the whole amount of their error(50000) ? the actual value today is 60% of 50000 (stock depreciation)
Any legal advice welcome. Thanks.
1 Answer from Attorneys
Re: BANK ERROR and INTERESTS
You need to clarify your inquiry, as I do not understand it. Is it a brokerage firm issue or a bank issue. Please also provide more details.