Legal Question in Banking Law in New York

Bank Error in My Favor

I recently went to my bank to withdraw $1600. It was exactly 10 business days ago. Generally the amount withdrawn takes no more than 2 business days to post to my account.

After handing the teller my withdrawal slip, she handed me the $1600 I wanted to take from my account. I just checked my balance and the money is still in my account.

My question is, if the bank discovers the error will I be required to give up the money? Or do I have any rights because it's their error? How long would it take for them to discover such an error? Is it illegal for me not to report the error to them?

Please let me know! Thanks! ~KP


Asked on 4/09/04, 12:09 pm

1 Answer from Attorneys
Thomas Luz Pearce & Luz LLP

Re: Bank Error in My Favor

This is not "Monopoly."

It isn't your money and you have no right to it. A mistake in calculation is not irreversible -- think about it. What if you made an error in someone else's favor and overpaid by $1,600? Would you accept the argument that the other person gets to keep the money because you're arithmetic-impaired?

The law is that, if you withdraw that which is not yours and fail to return it on demand, you are liable for conversion. Honesty is the best policy. Tell the bank about the mistake.

Read more
Answered on 4/09/04, 1:02 pm


Related Questions & Answers

More Banking Law questions and answers in New York