Legal Question in Banking Law in Indiana

Can I charge my bank interest for long overdue refund

When I changed banks ,due to unsatisifactory service,they never sent me a refund on my insurance..I cancelled the account on 5/11/01.I was told there was no refund due me..Last week on 11/20,i recieved a refund check in the mail for approx.356.00..i feel they owe me intrest on that money.,due to the excessive length of time..If I was that late in making a payment,i would be charged interest.. Can I charge interest??

Asked on 12/12/02, 6:48 pm

1 Answer from Attorneys

John Bator Bator Redman & Shive

Re: Can I charge my bank interest for long overdue refund

Under Indiana Law, Interest is usually contractual, that is there has to be some form of written agreement to be able to charge interest like a promissory note. However, on an account stated there is a statute that allows for prejudgement interest. My guess is that they will not voluntarily pay you interest and you would have to sue them. The cost of hiring an attorney outweighs the possibilty of recovery. You could sue in small claims court

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Answered on 12/13/02, 8:40 am

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