"Couple spent windfall from bank error"

"A Pennsylvania couple is behind bars after police say they failed to call the bank when a glitch put an extra $175,000 in their account."...

http://hosted.ap.org/dynamic/stories/O/ODD_BANK_ERROR?SITE=1010W...

This topic pops up occassionally here. Its plain theft if you did what they did. I'm not sure if you take it and move it to a "Saving" account to "hold it" to make money on the interest would be considered a form of theft also. But be warned, don't spend money that's not yours.

Should have ran off to a tropical island.

They really should change the Monopoly card "Bank Error; Earn $200". It's teaching our kids the wrong lesson.

smason1978 said: Most roofers I know routinely get paid $175k per job. Nothing fishy here.

That seems high. Aren't full houses like $175k?

tazzy531 said: They really should change the Monopoly card "Bank Error; Earn $200". It's teaching our kids the wrong lesson.

There is a double standard here, if the bank accidentally withdraws extra money out of my account, legally I only get 60 days from the statement to contact them about the error, but if the bank makes an error that puts extra money into my account they have unlimited time to realize the error and attempt to recoup the money. Seems to be me that the law is more than a little bit lopsided in favor of the banks.

Not that I think people should take the money and running, just that the system isn't exactly fair.

So the card should probably read "Bank Error; Loose $200".

Guess they figured by moving to Florida they might have asset protection; but when the assets were never yours, there is no protection.

CoffeeEater said: smason1978 said: Most roofers I know routinely get paid $175k per job. Nothing fishy here.

That seems high. Aren't full houses like $175k?

Could've been a commercial building.

timothy86 said: chimeer said: tazzy531 said: They really should change the Monopoly card "Bank Error; Earn $200". It's teaching our kids the wrong lesson.

There is a double standard here, if the bank accidentally withdraws extra money out of my account, legally I only get 60 days from the statement to contact them about the error, but if the bank makes an error that puts extra money into my account they have unlimited time to realize the error and attempt to recoup the money. Seems to be me that the law is more than a little bit lopsided in favor of the banks.

Not that I think people should take the money and running, just that the system isn't exactly fair.

So the card should probably read "Bank Error; Loose $200".

It really isn't that unfair. Unlike a bank, you only have your own personal finances to manage. If you don't look at any statements for 60 days, that isn't anyone's fault but your own. The bank on the other hand has 1000's of clients that they have to constantly monitor and therefore sometimes they may need more time.

I think that with the resources of the typical regional bank they could at least keep accurate records and audit them quarterly. We have a system that provides little to no incentive for a bank to spend resources on ensuring accounts are accurate, if they take to much money from your account they can keep it unless you complain, but if they give you to much money they can come for it years later. There should be an incentive for banks to get things right or at the very least the playing field should be level. As it is things are slanted in favor of the banks, and I think if the rules are good enough for consumers they should be good enough for the banks as well.

InterestedOnlooker said: If they really expected to be able to pull off this heist, they might have had a good sporting chance if they'd bought a penthouse in NY instead of hauling it all down to FL.

You could get a very nice 200 square foot apartment in Harlem for $175,000

I heard that you should put it in an interest account, get a lawyer, and collect the interest while they sue you for the money back. I have read at least one story where this has happened.

I was going to say, what should you do? I have a friend in this situation. Money was in unclaimed funds with the state treasurer. Without getting into too much detail, it was an error, with regard to a cashier's check. It was the original. Because of an error, it had been reissued, but somehow they were in receipt of the funds twice.

My friend put the money in an account and has not touched it. She contacted many people at the bank when it first happened (it was several years ago, now), to no avail. Now, she contacts the bank 2x per year, trying to give it back. Nobody has been able to handle it - they simply pass the buck, until it reaches a point where she doesn't get a call back. FWIW, it's a 5-figure sum of money.

So --- what else could she do? What should she do?

onetwo3 said: I was going to say, what should you do? I have a friend in this situation. Money was in unclaimed funds with the state treasurer. Without getting into too much detail, it was an error, with regard to a cashier's check. It was the original. Because of an error, it had been reissued, but somehow they were in receipt of the funds twice.

My friend put the money in an account and has not touched it. She contacted many people at the bank when it first happened (it was several years ago, now), to no avail. Now, she contacts the bank 2x per year, trying to give it back. Nobody has been able to handle it - they simply pass the buck, until it reaches a point where she doesn't get a call back. FWIW, it's a 5-figure sum of money.

So --- what else could she do? What should she do?
If your friend recorded these phone calls, then she should send 1 final letter (registered) and never make another mention of it again. Then spend the money.

Watch for the IRS to coming looking for that $175k in a couple years.

There is very little detail to the story, but I don't think that withdrawing the money or even closing the account is enough to land you in jail. When the error is discovered, and they find you and demand their money back--if you can hand them $, they don't really have a case against you. It would be pretty suspect that this couple left the state, but they could have argued it was coincidental.

Sounds like they couldn't come up with the 175K to repay the bank and that's why they are in trouble. But I'm guessing that if the bank made a big error, and you took the money to gamble in Vegas or the stock market that you could avoid jail as long as you had the means to repay them when they caught the error.

If I ever run into a similar situation, my steps would be:
1) Contact bank manager, if not resolved
2) Write a letter to the bank (paper trail) and wait 1 month.
3) If money hasn't been taken back yet, move money to high interest account and write a letter with account info so bank can find and reclaim their money.
4) Collect interest until the mistake is corrected.
5) After a year, send another letter requesting they deal with the error, keep collecting interest, and consider my obligation to report it to them more than satisfied.

Mithrin said: There is very little detail to the story, but I don't think that withdrawing the money or even closing the account is enough to land you in jail. When the error is discovered, and they find you and demand their money back--if you can hand them $, they don't really have a case against you. It would be pretty suspect that this couple left the state, but they could have argued it was coincidental.

Sounds like they couldn't come up with the 175K to repay the bank and that's why they are in trouble. But I'm guessing that if the bank made a big error, and you took the money to gamble in Vegas or the stock market that you could avoid jail as long as you had the means to repay them when they caught the error.

If I ever run into a similar situation, my steps would be:
1) Contact bank manager, if not resolved
2) Write a letter to the bank (paper trail) and wait 1 month.
3) If money hasn't been taken back yet, move money to high interest account and write a letter with account info so bank can find and reclaim their money.
4) Collect interest until the mistake is corrected.
5) After a year, send another letter requesting they deal with the error, keep collecting interest, and consider my obligation to report it to them more than satisfied.

do you actually have an obligation to do anything except not to run away with it? if they make a mistake, i don't see how the onus is on you to spend your precious time and money to notify them of their mistake. in my opinion, your only obligation is to give the money back when they ask for it.

roamerr said: Funny thing to me is that they are behind bars while Madoff gets to stay in his Penthouse.These folks have already shown they're a flight risk, unlike Madoff who basically confessed and stay put instead of keeping quiet and running like he could have. I'm certainly not defending Madoff's actions, only pointing out a pretty obvious difference.

Edited to fix bad grammar

smason1978 said: Most roofers I know routinely get paid $175k per job. Nothing fishy here.
Maybe they replied to a Nigeria 419 scam and thought the money was a payment?

I'm pretty sure they really tried to steal the money in this case. But this has got me thinking of lots of ways the bank or someone working at the bank could scam people this way. e.g. Banker tells flaky customer that he'll arrange a bank error in their favor, if they'll give him part of the money as cash. When they're caught, it's their (flaky) word against his (upstanding citizen and banker), and someone smart enough to pull off something like this would be smart enough to hide the cash or launder it overseas.

Pyromaniac said: I wonder what would have happened if you took half and sent it to the IRS to pay the tax. Bank comes to you and you say that you thought it was legitimate deposit into your account, paid taxes. You return what's left and tell the bank to go after to IRS for the remainder. That's a battle I'd love to see.

As much as I'd like to see that myself, I'd expect that the bank would demand the money from you now, leaving you to file an amended tax return and deal with the IRS yourself, alas.

A friend of mine once made a deposit in his checking account and the teller accidentally wrote his account number in the deposit line. He caught the mistake later that night. When he checked his account online he had a pending deposit of over $23 million.

Not only did she write it wrong on the slip, she actually entered it into the account.

What's "THE TAX" ?

Do you mean taxes on earned interest? If yes, that would be less than the interest earned.

If you mean tax on the principle, then no. You wouldn't be taxed on the principle because it was a bank mistake and you reported the real income.

I see no conflict with the IRS. It's not like you can mark the money and say "oh I gave those specific dollars to the IRS. Go bother them."

Pyromaniac said: I wonder what would have happened if you took half and sent it to the IRS to pay the tax. Bank comes to you and you say that you thought it was legitimate deposit into your account, paid taxes. You return what's left and tell the bank to go after to IRS for the remainder. That's a battle I'd love to see.

So the bank makes an error, and he goes to jail.... hmmm...