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    justice41's Avatar
    justice41 Posts: 2, Reputation: 1
    New Member
     
    #1

    Nov 11, 2008, 03:42 AM
    Can I sue My bank for their mistake?
    I opened a new checking account online , then I went to my local branch and signed the signature card and made a deposit. I was told my account was ready to go. I made a deposit to this account on October 31 to cover payment for a new Insurance policy I was taking out. We had insurance with this company I just put it in my name and cancelled it out of my daughters name. I received my insurance cards in the mail on Novemeber 8. On November 10 , my son , who was named on the policy was in a wreck on his way home from school (16 years old ) The car was totaled and there was damage to a utility pole that will have to be replaced. I find out from the Insurance company that my policy was retroactively cancelled on October 31 due to non payment from my bank. I had not received any notice prior to this that my policy was cancelled. I was told they received notice from my bank on November 7th, and they had yet to notify me ( they sent me emails prior to this about my coverage and payments just not that I was cancelled) , I called my bank about this error and why I wasn't notified that they did not honor this payment and was told there was a freeze on my account awaiting signature card . I told them I had already signed this card in a local branch and was told my account was ready for use. I had even already received a statement from the bank on this account and had made deposits to this account. I was never told there was a freeze. I was also never told they did not honor payment to the insurance company. Now I am responsible for the damages and now my son will also be charged for driving with no insurance. And I also had a daughter who has to keep sr22 filings and may now face re suspension of her driving privledges. All due to the banks error. Can I hold them responsible for these damages? I also now have to purchase new insurance at a higher rate due to the cancellation and lapse in my coverage. I Live in Ohio.
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #2

    Nov 11, 2008, 06:43 AM
    Hello j:

    You CAN sue them, but it'll cost you waaaay more to sue than you can win... I'd certainly talk to the bank manager. I'll bet they'll give you ALL the check fees back, and maybe they'll do more.

    excon
    LisaB4657's Avatar
    LisaB4657 Posts: 3,662, Reputation: 534
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    #3

    Nov 11, 2008, 07:04 AM
    In addition to excon's excellent advise I would contact your state's department of insurance. I don't think an insurance company can retroactively cancel your coverage without appropriate notice.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #4

    Nov 11, 2008, 07:05 AM

    When you open an account you are given a large amount of paper work, or online told to read the FAQ or terms, It will most likely say how long it takes checks to NORMALLY CLEAR, or about holds put on the account.

    I am not so sure it was a bank error, since a freeze may take a day or even two to clear, next when did the request for payment from the insurance company happen, before or after you signed the sig card ?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #5

    Nov 11, 2008, 07:12 AM

    I agree that the cost of suing may be prohibitive. But I do agree, since you did sign the card and they bounced the payment because the card was allegedly not signed, that they are responsible.

    If you bring this up to the bank manager, I suspect they will contact the insurance company with the result being restoration of your insurtance.

    If they don't I would contact both the state banking and insurance depts.

    Before I took this to court I would contact a local media consumer advocate about getting involved.
    justice41's Avatar
    justice41 Posts: 2, Reputation: 1
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    #6

    Nov 11, 2008, 01:48 PM
    The bank never charged me any return fees, I did not present a check, I deposited cash to the account on the morning I purchased the insurance, the insurance company then attempted to debit my account. I never received any notice from the bank that any debits had been made, or that my account was still frozen . If it was frozen why didn't they say anything to me when I made my deposit. The problem I am facing because of their incompetence is not only cancellation of my account but now I am faced with paying out of pocket for damages that occurred because of the accident my son was in . And now possible the suspension of my daughters license because she has to keep an sr22 filing. Now she may lose time on her job also because she won't be able to drive. The Bank has created one big mess for me financially , Why didn't they question why there would be a freeze on an account that had funds in it when a debit was presented? They definitely made no attempt to contact me. The insurance company apparently didn't realize the bank had not paid until the claim was presented , then they hurried to make sure my insurance was cancelled.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #7

    Nov 11, 2008, 04:21 PM

    Hmm this may be a harder sell. But the insurance company should have warned you the debit had been returned.

    As for the, I would have been checking my balance daily to make sure the payment was made on a new account.

    Again, I'm not sure if you have grounds for a suit. But I think if you make noise in the proper places, you can get the insurance company to reinstate your coverage.
    lostcause75's Avatar
    lostcause75 Posts: 1, Reputation: 1
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    #8

    Feb 23, 2010, 08:34 AM
    I am not a lawyer, but I have taken some classes in college when I thought I wanted to be a lawyer.
    Firstly, you must make certain that the terms of agreement that you probably electronically signed online does or does not mention anything about this particular situation. Chances are it does. You say that you signed the signature card on a certain day, and apparently the whole reason for this whole snafu is that the bank had a clerical error that froze your account. You claim you were informed that your account was "ready to go" upon signing the signature card. It would be helpful if the teller who told you that could be held accountable for what he or she said, or admit to saying it.. however I am sure the bank would have a policy in place to restrict what the teller can say on its behalf in this situation.
    So it is all about the paper trail at this point. If you are able to get your hands on the signature card, and I am assuming it is dated then you may have a partial case against your bank. HOWEVER.. the bank is a financial institution only, they are in no way held responsible for legal trouble you may or may not have due to it's mistakes. They have no liability for you driving without insurance. They will have a team of litigators on it's side also. You can throw all kinds of money at it with your own lawyers, but the banks lawyers do this everyday, they are more versed in their policies and law and this is their only job more than likely so your lawyer will be outmatched and the bank will have time on its side because you will be paying by the hour for legal counsel.. . HOWEVER..
    The insurance company is more legally obligated in this situation to cover your personal liabilty for damages to the pole, property damage and so forth.. but that is where their liability ends I am afraid.
    Every insuarance company has a policy that says they are not responsible for you (the driver) not having adequate coverage. As far as the law is concerned (driving without insurance charge) the only thing the people (the police)have to prove is that you do not or did not have proper coverage at the time in question, there is no clause or caviats as to the reason. I repeat - they do not care why you did not have coverage, only that you did not have coverage. It could be your fault, someone else's fault, the insurance company could have went bankrupt, it does not matter.
    Here is your only hope.. and it is faint I am afraid...
    Civil law is different from criminal law because you do not have to prove "beyond a shadow of a doubt". You can win a lawsuit with reasonable doubt present, but the law is also more interpretable. Therfore you will need to contact a lawyer, maybe several, make sure you have all of your papers in order, everything you can get from the bank, any copies, anything saved computer documents, anything that can prove that the signature card was signed prior to, and that the funds were available..
    You have to then be able to prove that a chain of events were sent into action beyond your control that led to your personal financial distress, and this chain and or pain and suffering. And this chain of events was started by the bank's negligence, or error. Sorry but your daughter cannot sue, and neither can your son. They can sue independently , and if you win your case then they should consider it.
    I would have to disagree however with other's advice here about contacting the bank first to work for a resolution. This will give the bank time to research the problem from all sides and "loose" the documents in question thereby claiming that they did not exist. Also you want to make sure that you have individual's names that you spoke with at the bank, if they are subpenaed and put under oath then the bank cannot force them or hold them liable for anything they can say so long as it is the truth. Again... the lawsuit can only be for your personal loss, unless it is a class action suit your son and daughter cannot be involved. But this case does not meet requirements of a class action suit.
    Remember that pain and suffering can be relative and subjective, but needs a financial number attached to it in court. If the stress of this situation keeps you up at night that is suffering, but it will hold more ground if it caused your work to suffer, and or you missed work because of it. You cannot sue for being unhappy I am afraid.
    dbluei51's Avatar
    dbluei51 Posts: 1, Reputation: 1
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    #9

    Jun 26, 2010, 05:34 PM
    My bank cleared a check from my insurance company, they were in the process of putting a stop payment on it and sending me a new one. This checked was in my name and the lean holder of my car, the lean holder stamp indorsed it and them put cancel over the top. They sent it to me to sign! I put it in the ATM. My banks policy is that you only get the first 100 dollars of any amount. I took the money out and then a day later they say that their was a stop payment on it, and debted my acoount. I don't believe that any bank is going to give you a courtesty check of 2 thousand dollars before it clears! I refuse to give the money back, it was my money and I think the insurance company is trying to get it back to give to my lean holderr of my car because I let them repo it, I since got another check sent in the mail for the same everything with my name and the lean holders name. What should I do?

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