[DrJ]

Ok, so here is the situation... (sorry so long)

My roommate was going to be late on rent this month so we were going to hold off on paying until the 17th (when my roommate got his next check). Our rent was due on the 1st. We received our 3 day pay or quit on the 15th, which gave us until the 18th (as we expected). I was going to give him my half of the rent and he was going to get a money order and pay (like we always do).

I had opened a new bank account at Wells Fargo (where my roommate also banks) one week prior. I deposited $100 to open the account. On Thursday, I wrote my roommate a check for $478. The same day, I deposited another $400 check into my new account. This was also a Well Fargo check so I knew it would clear in time. My roommate deposited my check through the ATM and withdrew $100. He would just cover the balance for rent from his paycheck the following day.

I should note that the check that I had written him was a temporary check that I received when opening the account.

I should also note that when I opened the new account, I was in a rush. So I basically just signed a piece of paper and let the bank do the rest while I left. I gave them the $100 and they gave me a receipt. I did not know that they put that $100 into the savings account, instead of the checking. So when I wrote the check for $478, I assumed it was covered. Luckily, the accounts came with overdraft protection so even if the check DID get processed, it would still clear. This was later verified by the bank.

Thursday night, the ATM company (not the bank) processed the ATM deposits for the day. They saw my check and, instead of processing the check, they just looked at the balance in my account. They only saw the $400. They also saw that it was registered to an account at the same address as the person who had deposited. They assumed the person who deposited the check (my roommate) was "kiting" (a term I just learned about). This is when someone opens an account with an alias, writes themselves a check, deposits it, and takes the advance cash against it.

The immediately froze my roommates account.

After some time at the bank yesterday, we got this all squared away and figured out. It was deemed that it was their fault. They called the Fraud Dept to have the freeze on the account lifted. This was good because we now only had 1 day to pay the rent or be evicted.

While on the phone, the banker was told that it wouldn't be able to be lifted until the following Tuesday (3 days after the deadline). He asked if he could get a BM (Branch Manager?) Override and was told yes, he can.

The banker spent the rest of the day trying to reach his boss to get the override but apparently wasn't able to. We last spoke to him 6:30pm that night and he said he would try to reach him on his cell.

It is now Saturday (doomsday). He told us that he was working this morning and would continue to try and get the override to unfreeze the account today. Obviously, I don't know yet if that will happen.

My question is that if the lift is not able to happen today and we get evicted, what are our options? Can we hold the bank liable for this?

I understand that if the account is not unfrozen today, I will try to get an exception with the apartment association but there is no guarantee.

Any input would be great :)

[JudyKayTee]

I wouldn't fool around with the check - I'd pay the landlord cash and work out the check later.

Cancel the check, for that matter.

As far as the bank's liability - I see a responsibility on your part to make sure you had sufficient funds when you wrote the check. In NY if you do not have accessible funds when you write the check, it is a crime. You cannot count on when the deposit will clear.

Consult with an Attorney - but keep in mind that the Bank has deep pockets and Attorneys on staff for problems such as these.

[ScottGem]

The pay or quit notice is only the first step in an eviction. If you don't meet the deadline, the landlord then files for an eviction order and that involves a hearing. You can still pay in full up to the hearing. To forestall it.

I would certainly make your landlord aware of the situation (get a letter from the bank) and let them know when they can expect the payment.

[DrJ]

JKT, there was no money given to the landlords yet. The check was written from me to my roommate and has now been stopped, since they suspected fraud. However, there were funds available the whole time. It's just that some would have been drawn from the savings account, as well. I was informed by the bank that if the check was processed, it would have cleared.

Since then, I simply got the cash from my bank to give to my roommate.

The issue is that the rest of our rent is frozen in my roommates account due to false fraudulent suspicion. Everything was technically covered from our end and the bank has already admitted fault.

The problem is the time frame in lifting the restriction on the account so that we can withdraw the rest of the rent today.

The freeze was not our fault and yet we may be evicted because of it.

Scott, if the eviction order IS filed, will paying the rent in full on Tuesday actually stop the eviction or just give us a better chance of the eviction not being granted during the hearing?

And yes, I intend to get a letter from the bank to plead our case. I just fear that "association guidelines" may prevail over reason.

[excon]

Scott, if the eviction order IS filed, will paying the rent in full on Tuesday actually stop the eviction

Hello Dr:

Yes. You can even pay it up till your court date, and it'll STOP the eviction.

excon

[DrJ]

Really? I didn't know that. That is good news.

So is it possible for the simple filing of an eviction to show up on a credit report? Or are there any other foreseeable negative consequences that could result from this?

I just want to cover all our bases and make sure this doesn't come back to bite us someday.

[excon]

So is it possible for the simple filing of an eviction to show up on a credit report?

Hello again, Dr:

Nahhh. The credit bureaus only look for JUDGMENTS. Cases that are dismissed don't hurt you.

excon

[DrJ]

Awesome! Thanks everyone... you are all just the people I was hoping for responses from :)


(JKT.. I have to spread the rep before I can give you some [honestly :o ]. It was difficult to explain exactly what happened... sorry for the confusion but I appreciate the input)

EDIT:: Scratch that! It works now..

[JudyKayTee]

Awesome! Thanks everyone... you are all just the people I was hoping for responses from :)


(JKT.. I have to spread the rep before I can give you some [honestly :o ]. It was difficult to explain exactly what happened... sorry for the confusion but I appreciate the input)

EDIT:: Scratch that! It works now..

Don't worry about the greenie - I answered everything BUT your question.

[DrJ]

Such is life... however, this one line did stick out.

but keep in mind that the Bank has deep pockets and Attorneys on staff for problems such as these.

Can't say the thought didn't cross my mind.. was erring on the side that they would want to keep it hush hush and make it worth my while :D

[ScottGem]

In most states you can stop an eviction due to nonpayment by paying in full prior to the hearing. You should check your states rules to confirm.

[DrJ]

Thanks for the stress relief, guys. I was worried and don't really know much about eviction laws.

Luckily, it didn't go that far since the bank was able to lift the hold on the account yesterday in time to get the rent money to the landlords.

[JudyKayTee]

Just out of curiosity - did the bank make any attempt to make this right? Letter of apology, give you one of those apparently expensive pens or else why would they chain them to the desk, anything?

Or did they simply shrug?

[DrJ]

Ya know, I'm not sure. As far as I know, no, they didn't! My roommate is the one that talked to them on Saturday.

They did agree to reverse the couple overdraft fees that were charged to my roommates account... but what about the mental stress? Surely, there should be some sort of compensation. I'd even take a fresh batch of those sugar cookies they used to serve!

[JudyKayTee]

In my bank you get dog biscuits - whether you have a dog with you or not - and the pens are STILL chained to the desk.

No cookies.

[DrJ]

Oh that would have made it a classic situation...

"Im sorry sir, we have frozen your account due to potential check fraud. Doggy biscuit?"