Bank Error - Big Time

[JohnH]

Interesting story here.

As I was reading it, the thought crossed my mind - did the bank even have the right to process the check? I thought they had to return the payment to IRS if the account was closed.

Seems like the bank may have put themselves in hot water with IRS by negotiating the check and sending the customer the balance, even though banks do give themselves a right of offset in every customer agreement.

http://www.king5.com/news/125105599.html

[DTS]

I read this on the drudgereport this morning and thought Chase might have to fork over more than that net refund check he tried to cash.

[JohnH]

Yep, that might just be the most expensive $600 in overdraft fees that they have ever collected.

[ChEAr$]

I just hope he sues the heck out of Chase and collects. The bank had no right of offset, since
at the time, he was not a current customer (his account had been closed).