Question

Here is situation of a informing a bank of its liability when it deposits a customer's check in the wrong account.

Three weeks ago, you deposited a $1,000 payroll check at your bank after having signed your name to the back of the check and writing the words "For Deposit Only—Account Number 7852837" immediately above your signature (Account Number 7852837 is your checking account). Since then, you have discovered that the bank did not deposit the check in your checking account, but instead deposited the check in your other account at the bank, a "money market" account. As a result, you have "bounced" three checks totaling $583, and incurred $75 in bounced check fees.

The question is explain your bank advising them of your legal rights in this situation.

Answer 1

Dear Concern,

This is to inform that I deposited a $1,000 payroll check three weeks ago at your bank to my checking account (7852837). But recently I discovered that your bank deposited into my money market account rather than my checking account. Due to this error my three checks totaling $583 were bounced, and also imposed $75 in bounced check fees. Since it's the bank's responsibility to deposit a check into the accurate account, therefore I should not be liable for these charges.

The UCC Article-4 states that it's the liability of a bank for action or non-action in regard to an item handled by it for purposes of payment, presentment, or collection. Furthermore, Code § 4-402 informs on the extent of a liability of a bank to its customers for wrongful payment, dishonor, and specifies the damages which can be recovered. When the bank improperly refuses to honor the check issued by customer, then customer may have a cause of action against them for any actual losses sustained by the customer. In my scenario I have clearly stated - For Deposit Only- Account Number 7852837, thus it was an error on your bank's account for depositing my check into a money market account which is a non financial account.

I would request you that a senior official must intervene, and can resolve the entire matter without any legal ramifications

Thank you.

Best Regards,

XYZ