Legal Question in Banking Law in Indiana

I got a check from progressive for my totaled truck. I didn't notice that it was made out to both of us and endorsed it with my name and deposited it in my individual account. Bank showed funds available and I paid bills, then the next day the put a hold on the funds because of the missing endorsement. They didn't contact me about it. Instead of returning it for the missing endorsement they put a hold on the funds and refuse to do anything. They said I needed to have the insurance company stop payment on the check and have them issue a new one in my name only, but then they deposited the check so Progressive couldn't stop payment and can't issue another check. Regions is holding my funds hostage and I was told by one person at the bank that they would hold the check for 30 days then return it to Progressive for the missing endorsement and then Progressive could issue a new check. What can I do to get them to release the funds? It is almost $8k. My husband is totally paralyzed and can't go into the bank, but his mom has his POA so she could sign on his behalf.

Asked on 10/25/17, 7:59 am

1 Answer from Attorneys

Kenneth Wilk Rubino Ruman Crosmer & Polen

There isn't much you can do because you violated the rules when depositing the check without proper endorsements. So the problem was your fault. You'll have to work things out with Progressive first and then things with fall into place with the bank.

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Answered on 10/25/17, 2:51 pm

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