A Bank Error----HUGE

calico1597

Recycles dryer sheets
Joined
Jan 16, 2016
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Location
near Phoenix
Talk about banking mistakes - my mother recently sold her house and bought a $100K CD from her bank. She wanted my sister and I on the CD. The bank sent the CD to sis for her signature, then it was forwarded to me. The bank listed the amount as one million dollars in two separate places instead of $100K. I KNOW mom does not have that kind of money.

I emailed the bank and asked them to look at the CD (assuming they had kept a copy). I told them it had an error. They wrote back and asked what was wrong with it. Then I emailed back and told them the amount was probably wrong. Their reply was, Yep, we'll issue a new CD. And I was not asked to return the original CD.

Think I'll frame it. Or try to cash it when mom passes.......:dance:
 
+2.... perhaps you should have cashed it in accepting the early withdrawal penalty and moved the money to an offshore bank and moved to a contry with no extradition treaty.
 
You did the right thing, A) it was the moral thing to do, b) some how if and when they caught the mistake, they ,might have caused problem for you. Awesome story to tell folks especially with the framed CD.
 
I cashed $2400 in checks at a bank recently. They gave me the cash, and listed it as a deposit. It took six weeks, but the deposit was reversed.

Banks account for every penny. Sometimes they let amounts under ~$50 go to a "not worth it to track" bucket, but I can assume you they would have found that mistake.

I had a new co-worker that started at a company. They listed his pay as $41K per hour, rather than $41K per year. The company caught that too - after the pay period. The pay advice said over $900K, but the leading '1' was made the amount too long. It was actually a $1.9M deposit.
 
I wonder if anyone in payroll got fired for that one.
My guess is no. Branch office bank employees get fired for actual cash variances, not paperwork mistakes.
 
Back in 1986, I had a small bank error in my favor. I made a cash deposit of $100 but there was a problem with the printer ribbon on the device the teller used to process my deposit. What the teller did was to stamp each copy of the deposit slip with the following message I had seen tellers use before: "Deposits subject to collection, unless cash". He then handed me my copy of the slip.


I wasn't particularly worried because my deposit was cash. But when I received my next monthly bank statement, I saw that the $100 deposit had been credited twice to my account, perhaps because they had 2 stamped copies of the slip? I figured the bank would figure it out so I made sure to leave it in the account. At the time, I had just bought my first car so I had very little money at the time, so this was a welcome windfall. But the bank never undid their error. I remember being reminded of the Community Chest card in Monopoly which read, "Bank Error in your Favor - collect $200" and how this was a real-life version of that welcome card.


So when some little thing happens to me and I feel I got ripped off by a few dollars without recourse, I don't get too upset about it because I am still in the black thanks to this bank error.
 
You don't get to keep the money - but you get a great story and framing the million dollar CD is outstanding!

Lucky. Years ago I deposited some rent money and someone had passed me a couple hundred counterfeit bills. Little local bank called me in and reduced my deposit and showed me the bills and let me inspect them but not keep them. Would have liked them as souveniers.
 
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...but I can assure you they would have found that mistake.

I forget the guy's name, but one of the first major computer crimes was a guy who embezzled exactly $1 million from I think it was Chase Manhattan Bank in New York via a wire transfer using an unauthorized code. The funny part of it was the bank spent months looking for the misplaced decimal point and didn't find out about the theft until the guy couldn't stand the stress anymore and confessed to a lawyer, who got him a good plea deal.
 
DW's coworker once stole $99 million from the major investment bank they worked at. Had she kept the amounts to a reasonable $30-60k at a time she might not have been caught for a long time (because she in fact wasn't caught for a long time, bought a luxury condo for cash, and spent tons of $$ for many many months IIRC). Eventually she increased the amount to high eight figures and someone finally paid attention to the break in the reconciliation process.

She (the coworker, not my incorruptible DW who wouldn't even delay her quit date by 2 weeks to use up her vested vacation time!) only got 7 years in Club Fed so it's not entirely unreasonable to take your chances at stealing six or seven figures considering the potential payoff.

Her group would routinely have large breaks sometimes in the eight figures in their group and the boss or boss's boss would say "it's okay we'll fix it with a ledger entry" (or whatever the appropriate accounting term is for what must have been reckless accounting, well documented in DW's emails to the higher ups). This was eventually noticed when there was a $15 million break in the books. I believe they had to restate earnings. DW's employee (not the thieving one; a different one) was transferred but otherwise not disciplined. DW was out on maternity leave and warned the higher ups about the nonsense in the years leading up to this but zero action was taken.

I understand audit time was somewhat stressful ( ;) ) for them and I think I understand DW's decision to quit since it was a lot of stress (even working half time) for a pretty average $70k/yr paycheck.

So I would believe you if you told me a measly $900,000 bank error went unnoticed. :)
 
You know how easy it is to daydream when the teller is counting out your cash? Don't do it. Last week I counted along with her, and then asked her to recount. She was $100 short on a $800 ($100 bills) withdrawal.

I think it was an honest mistake, but still.........
 
It sounds like some old fashioned document being passed around with original signatures required. All my CDs are just sub accounts with titling and beneficiary details noted on the account.
 
You know how easy it is to daydream when the teller is counting out your cash? Don't do it. Last week I counted along with her, and then asked her to recount. She was $100 short on a $800 ($100 bills) withdrawal.

I think it was an honest mistake, but still.........

Ours count AND run the cash through a counting machine.
 
When I was a bank teller we had to balance our cash drawer, deposits and withdrawals every night and anything over or under a dollar would put you on probation for 30 days, during which another "error " over .99 could get you fired. And it never mattered whether you had to much or not enough cash.
 
Back in the early 90s, when cash machines were glitchy, I had both a short and long transaction over the years. ($20 each time).

The next day, they "fixed" it for me without comment. The first time I called to ask (it happened on a Sunday) and they immediately told me I was credited. On the long transaction, I didn't bother calling, but still found the debit was applied a day later when I got my statement. :)

I have no earthly idea how ATMs work, and how they audit them, and how they knew it was my transactions. But they knew.
 
Ours count AND run the cash through a counting machine.

Same here. And I can see, barely, the readout on the teller's cash counting machine when she inserts the cash into it. Even then, I still count the cash before I leave the teller.
 
When I was a bank teller we had to balance our cash drawer, deposits and withdrawals every night and anything over or under a dollar would put you on probation for 30 days, during which another "error " over .99 could get you fired. And it never mattered whether you had to much or not enough cash.

Yea.... too much cash means you shorted a customer which is not good... too little and you are giving away the banks money...

I am surprised that it was $1 limit.... that just seems to be too strict...
 
Back in 1986, I had a small bank error in my favor. I made a cash deposit of $100 but there was a problem with the printer ribbon on the device the teller used to process my deposit. What the teller did was to stamp each copy of the deposit slip with the following message I had seen tellers use before: "Deposits subject to collection, unless cash". He then handed me my copy of the slip.


I wasn't particularly worried because my deposit was cash. But when I received my next monthly bank statement, I saw that the $100 deposit had been credited twice to my account, perhaps because they had 2 stamped copies of the slip? I figured the bank would figure it out so I made sure to leave it in the account. At the time, I had just bought my first car so I had very little money at the time, so this was a welcome windfall. But the bank never undid their error. I remember being reminded of the Community Chest card in Monopoly which read, "Bank Error in your Favor - collect $200" and how this was a real-life version of that welcome card.


So when some little thing happens to me and I feel I got ripped off by a few dollars without recourse, I don't get too upset about it because I am still in the black thanks to this bank error.

We all see things differently but were that my story I wouldn't re-tell it. I'd keep it quiet as I would be rather embarrassed by my actions.
 
I cashed $2400 in checks at a bank recently. They gave me the cash, and listed it as a deposit. It took six weeks, but the deposit was reversed.
I had something similar, except a 6-figure deposit was recorded as a withdrawal.

The consequence was that our accounts were hugely in the red and locked for a few weeks. All bill pays and checks were bounced. Also direct deposit from paychecks did not make a dent in the deficit, so they became unavailable, too. We lived off of credit cards in the meantime.

I had the bank manager send letters to all our bill payees and pay any late payments penalties. A friend said, "If you want I can send a huge late payment penalty to you and you can get reimbursed and I will give it to you."

Then I closed my account at that bank.
 
I had something similar, except a 6-figure deposit was recorded as a withdrawal.
Ouch! That's no "LOL" moment at all. I don't blame you for firing them.
 
My personal story is that I once wrote a check on my brokerage account to pay my monthly credit card bill; that particular month it was a few thousand dollars. This was back in the day when the brokerage account mailed me my processed checks. Well, a week or two later I get two processed checks in the mail from the brokerage company, including the one to my credit card company.

The credit card company treated my bill as paid in full by the check.

The brokerage company debited my account for the other check, but as far as they were concerned the check to my credit card was never written; they didn't debit my account.

I was of course told to wait and they would figure it all out, but they never did. The back of the check had all of those mysterious numbers and bank names showing that it went through the system somehow. Obviously there was some mistake, but since both the brokerage and credit card companies were large, multi-billion dollar entities, I think they probably wrote it off as a rounding error.

Back then I had more time and vigor, so I spent about six months getting them to debit my account. I had to call them, fax them copies of both sides of the check, then send them a firm letter. I think they thought I was weird.

...

I also used to work for a bank in their "problem management department" so I got to see all of the glitches. The couple that I recall:

* One night the bank ran the job to pay all the mortgages twice. Whoops. They figured that one out and fixed it during the night so thousands of customers didn't wake up to find their checking accounts mysteriously overdrawn.

* A teller processed a mortgage payment for $375 as something like $3,750,000,000. Audit procedures were in place so that the teller couldn't fix the mistake themselves, so we had to create a special accounting job to reverse the transaction. We also had to call the customer and ask them not to ask for a $3.75 billion credit balance refund. Heh.

...

Finally, I did have a bank that I fired once. The bank was an interstate bank, and I had accounts with them in the state where I was attending college, including a debit card. When I graduated and moved to Idaho, I went to the analogous branch here and asked to open accounts. They refused to give me a debit card, even though I had had one and used it responsibly for two years with their sister bank in another state, and I was now a proud college graduate with (presumably) better earning potential. Fired them and haven't done business with them since.

Oh, and my Dad fired a bank once too. He had a business with numerous employees, and somehow someone at the bank ran the payroll checks against my Dad's personal checking account, which overdrew him by probably mid-five figures. Then I think they got snooty with him that he had overdrawn his account. He tried talking to the branch manager but ended up firing them.

I'm sure all banks screw up every so often. The bank that my Dad fired is the one I've used and been happy with for about 24 years now, and they've never made a mistake with me.
 
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I fired an online brokerage once. Won't name it, but it was one of the very first. I thought I'd try it out and sent them a small check - maybe $1K - to open an account. Some weeks later, I still couldn't access it online, they insisted they didn't get the check, even though I had the cancelled copy. When they finally admitted they had my money, I told them to immediately close the account and return my money - I just didn't trust them at this point. They sent my money back, but somehow between the time they wrote the check and tried to close the account, a penny or so of interest had been credited. So the account didn't get closed, I didn't care about the penny, and for many years this brokerage wasted postage sending me a monthly statement saying I had one penny in my account. :LOL:
 
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