I have a checking and savings account in Wells Fargo. On August 9th 2010, I deposited a Demand Draft of 4000USD. They store manager advised me to deposit in their ATM. Later they treated my 'Demand Draft' as check and came to the decision that it is a counterfeit check and scheduled my account to be closed on 3rd September. I callled them and explained what demand draft is and how it works(Although they are the BANKER, I'm not). Now they are saying, its not a deposit item. It's a collection item. So, I have to wait 30 days to get it back and submit to their collection section or to submit in any other bank after getting it. I'm an international student and have failed to register for classes. Now should I sue them for this trouble that happened for their inefficiency.

Hello k:

I wouldn't sue them until I expended my energies with management. I don't know who "they" are. It might just be a voice on the phone.

I would go back to the original manager and ask him to fix it, and it he can't I'd talk to his supervisor, and then his if it didn't get fixed.

Or, if they are offering the draft BACK, and telling you you're free to deposit it somewhere else, then you may not have grounds to sue. Obviously, THEY don't know what a demand draft is. I don't either. But, if it's their POLICY to wait 30 days for it to clear, then that's their policy. I'm sure you signed an agreement authorizing them to make these kind of decisions regarding your account when you opened it.

excon

Good luck trying that... lawyers cost money and the process takes time. Do you have a lot of both? They have Lawyers on retainer, get the money in 30 days and find a new bank... some things aren't worth fighting. They could likely find a way to delay you getting it back if its considered evidence in a lawsuit.

Because of the high potential for fraud associated with demand drafts, I'm not at all surprised that the bank wants 30 days for it to clear before crediting your account. It seems their mistake was in not initially recognizing that it was a demand draft, as opposed to simply an unsigned counterfeit check. But unless you have a contract with them where they certify that demand drafts will clear in a specified number of days, or unless the 30 days violates a banking regulation (and I don't believe it does) you have no grounds for a suit. Your best recourse, as others have already said, is to work through the bank management chain to see if they can speed it up.