Legal Question in Banking Law in Minnesota

Say a customer with 16 dollars in his acct deposits a 2000 dollar check, spends some before the check clears and then the check bounces putting the customer in the negative almost 2000 dollars. The bank says he is liable for the funds... Does the bank have ant responsibility to the money because REG CC governed by the FDIC wasnt followed.

First of all a hold should have been placed on the check bc it was from out of state and a large amount. A hold should have also been placed because the customer didnt have.matching funds to deposit the check - ie he didnt have 2000 in his acct to cover the check if it bounced.

Because the teller didnt do her job the check wasnt held. A proper hold would have made 100 dollars available first day so when the checked bounced the cust would have only been out 100 dollarsand not 2000 dollars.

Does he have a valid case to hold the bank responsible for those funds bc of negligence on the teller/personal bankers part ( FDIC/REG CC requires all bank employees to be trained and well versed on these policies)


Asked on 7/28/13, 7:58 pm

1 Answer from Attorneys

Tricia Dwyer Tricia Dwyer Esq & Assoc PLLC

Hello. A private attorney would be happy to analyze your issues and provide you with a legal opinion. This website provides general information and general principles of law and does not provide private legal advice. Some attorneys are available seven days for emergency legal needs. Many attorneys will confer initially at no charge. Then, if legal work is performed, some attorneys will provide a reduced fee for financial hardship. Some attorneys may also assist you in limited scope manner to conserve legal costs. All the best.

Tricia Dwyer, Esq.

Phone: 612-296-9666

[email protected]





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Answered on 7/28/13, 8:14 pm

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