Bank error costs retiree $30,000
Nearly 2 years' worth of Social Security benefits were deposited in the wrong account, but Bank of America said it couldn't fix the problem.
Why is it that when banks make mistakes, they never seem to be held accountable?
The latest newsworthy blunder came to light thanks to David Lazarus of the Los Angeles Times, and it's a doozy: About $30,000 in Social Security benefits, about two years' worth, were direct-deposited into the wrong person's account after Bank of America assigned the same account number to two different customers. The bank didn't do anything about it, even after the retiree's family complained.
Once the local district attorney's office got involved, the Social Security Administration -- NOT the bank -- made good on the missing money.
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A Bank of America spokeswoman called it "an unusual and unfortunate incident" but had very little else meaningful to say.
Lazarus didn't hold back: "I'm glad (the retiree) got his money. And it's reassuring that justice was served. But BofA's actions, or non-actions, are deeply troubling, to say the least." Post continues after video.
Here are the details, courtesy of Lazarus:
BofA gave Robert Weber, now 88, a new account number in 2009 because of what it called "suspicious activity" in his account. The same account number was also given to another customer. The Social Security Administration received the account number and continued depositing Weber's monthly checks.
Weber's family got involved in his financial affairs in December after his health, including eyesight, began to fail and noticed that his Social Security payments had dried up in March 2009.
This is where the outrage factor cranks up: "The bank manager said they could see on the screen that my grandfather's checks were going to a different account," Weber's grandson, David Madden, told Lazarus. "But they said there was nothing they could do about it."
Alerted by Madden and his father, the San Bernardino Sheriff's Department looked into the matter, and BofA showed a deputy the same thing on the computer screen. The sheriff's office notified the DA.
Long story short: The owner of the account that received Weber's benefits was sentenced last week to 90 days in jail and restitution. (As we've pointed out before, spending a bank error in your favor can get you in big trouble.)
Why wasn't Bank of America on the hook for replacing Weber's money? The bank wouldn't explain that either.
Final outcome: Weber, a loyal BofA customer for more than 60 years, closed his accounts and took his business elsewhere.
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VIDEO ON MSN MONEY
Bank loses 30k customer's money and says "freak it, we can't do anything, sucks being you"
Bank issues 3 billion in bad home loans, loses all of it and runs to fed crying "it wasn't our fault" ,gets money and forks out 1 billion in bonuses to the board of chairmen for doing such a great job "of saving the bank".
Think I'm going to open my own bank..............................
Here's a suggestion, stop doing business with the big banks. I refuse to do business with Chase, BofA, or Wells Fargo. Do I need an auto loan? I'll use a regional bank. The only way to send a message to these companies is to be a principled consumer and stop patronizing them.
I hate the way credit card companies operate, so I do not have any credit cards. I was tired of Comcast, so I dropped my cable service. Until the majority of us consumers quit taking it in the rear and vote with our wallets, the more these large companies will get away with their shennanigans.
Back in the 60's before BofA became a national bank, it was only in Ca. at that time, they screwed up 2 fellas accounts....their name started with Z and one lived in the LA area & the other in the Bay area.
There was a story in the newspapers back then about the mix up...I resolved at an early age to NEVER bank with them! They just keep proving my point!!!
In another instance, back about 15 yrs. ago, I managed a store. We had direct deposit. One of my employees banked at BofA, she kept bouncing checks & couldn't figure out why. So, I asked her to bring in one of her bank statements & I would try to help her figure it out.
Her checks were sent on Thurs. but they weren't posted to her account by BofA until the following Wed....NEARLY A WEEK LATER! She changed banks!!!!
And these are just the ones I know of for sure!
I didn't even have to read this article to know it had something to do with Bank of America.
If they make a mistake that is in your favor, you run the risk of being thrown in jail for taking advantage of it.
Yeah, that's fair. They should pay for their mistakes just as we pay for ours.
Once again, BofA is the focus of another story of ABUSE & INCOMPETENCE...
There's a reason BofA was recently voted the #1 most hated company in America!!
These people DON'T DESERVE YOUR BUSINESS!!! Move your money to a member-owned credit union or local bank TODAY!
2 years ago in south carolina bofam refused to lower their flag to half staff while a funeral for a fallen iraq solder passed by as a result that branch was preminantly closed and that branch manager was fired. me and 6000 other with drew our money from bank of america.it was the best decision i made in 30 years of banking with them. they are blood suckers.
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