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Jane T (LLC)
Jane T (LLC), Lawyer (JD)
Category: Legal
Satisfied Customers: 8435
Experience:  Experienced attorney; contracts, internet, business, finance, employment, RE, consumer, & more.
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My question involves the fdic inurance for a bank. As I understand

Resolved Question:

My question involves the fdic inurance for a bank. As I understand this, if a bank makes a wire transfer from one bank into another bank, once in the second acct becomes the poperty of the receiving bank. but what happens if the mone is taken illegally from the first bank and deposited in to the receiving acct, and already taken and sent western union to another country, will the fdic insurance cover the innocent person who received the illegal money unknowingly. Or will i have to somehow pay the bank back
Submitted: 8 years ago.
Category: Legal
Expert:  Jane T (LLC) replied 8 years ago.

DearCustomer

 

Did the consumer receive a false check they deposited?

 

Who ordered the funds sent by electronic transfer?

 

 

Customer: replied 8 years ago.

A third party, all I knew way was that it was supposed to be payment to a man I was involved with thru the internet in one of those love things. He is out of the country and they told me that a company he was doing business for was trying to send him money but that they needed someone that he knew to transfer the money to him and I being a trusting woman let them wire money into my chase acct. I then took the money out and sent it western union to Nigeria, were he is. We did the normal 5 day external transfer and the pretend deposits and wiated the 5 days and the money came from wells fargo and I proceeded to send tit to nigeria. But then about a week later, the transfers got reversed. No one has really told me why, but now I owe chase bank $20,000. and I cant get anyone to answer me at the phone number is XXXXX given and so basically, im screwed

 

Expert:  Jane T (LLC) replied 8 years ago.

DearCustomer

 

Unfortunately, you may have been the victim of a crime but FDIC insurance cannot help. FDIC insurance is meant to insure deposits for persons if the bank fails, not, against criminal theft or loss (see here). Also, wire transfer agreements often make the consumer liable if a transfer of funds is not covered by a consumer's account. Consumers are normally held responsible (if the actual provider of forged funds is not captured) for any loss a bank may incur if it transfers funds based on a deposit that does not have money behind it (just because a check clears does not mean there are funds behind that check to make the deposit real). Victims of such crimes may report their situation to the Internet Crime Complaint Center here which is partnered with the FBI.

 

 

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Customer: replied 8 years ago.

Concerning my question, When this occured, why wasnt the bank or I given any information, from Wells Fargo,as why this had happened> It seems to me, that before the second or third transfer was made, someone from Wells Fargo, would have noticed something wasnt right and informed Chase as to a problem.

One other question, cacn Chase charge me late fees and overdraft penalties, when I am the one who alerted them to the situation?

Expert:  Jane T (LLC) replied 8 years ago.

DearCustomer

 

If it can be shown that a bank was negligent, for example, that a transfer was clearly, on its face, fraudulent or otherwise improper, then they may be held liable. However, courts have determined that banks cannot be held liable to check or verify that every deposit or transfer to assure it is proper because of the volume of transactions they do every day, so negligence tends to be found only were something is so obvious or clearly wrong that any reasonable banker would have normally detected it.

 

When persons undertake to conduct deposits and transfers from their accounts they normally enter into bank agreements that indicate that if any problems arise through which a customer ends up owing a bank money that the account will have late fees and overdraft penalties charged. Normally, this is provided in the package consumers receive when they open accounts at banks. If such fees are not added in violation of such agreements then they are normally allowed. However, sometime banks may be willing to forgo such charges if they and a consumer can agree to an arrangement.

 

 

Customer: replied 8 years ago.

so, over the course of the few weeks that this was going on,i mean, wouldnt that be long enough for wells fargo to realize something was wong. and wouldnt it be their responsibility to at least notify Chase concerning the matter. When I talked to the manager at Chase, she informed me that she had never heard anything from Wells Fargo, concerning the matter

 

Expert:  Jane T (LLC) replied 8 years ago.

DearCustomer

 

Not necessarily. It normally takes a few days, at least, once a transaction first takes place, for the automated payment systems to move through their collection practices and notify and then notice that there are or are not funds available. Then the process can work its way, slowly, from bank to bank searching for the funds. Also, where international banks and payment systems are involved there may be even more time before a final realization is made that a transfer has no funds behind it. Moreover, the system are automated, going by account numbers, routing numbers, etc., meaning that it would be unlikely that a particular bank branch worker would know about something until a customer, after being contacted by the corporation, tells them.

 

 

 

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