Last Updated on December 20, 2024
Monopoly may have introduced most of us to the idea of a “bank error in your favor,” but while it is an unexpectedly beneficial windfall in the board game, in real life, using this money could leave you facing criminal charges. If you find an unexpected credit on your bank statement, the best thing you can do for yourself is to call the bank and report it.
What Happens if a Bank Accidentally Gives You Money?
If you receive extra money in your account due to a bank error, the first thing to cross your mind is likely, “do I have to give it back?” Unfortunately, the answer is yes. Just as it is illegal to keep money you found on the ground without attempting to find the owner, knowingly spending money that was accidentally deposited into your bank account is considered theft. If the deposit was for less than $950, you could face misdemeanor charges petty theft charges (unless you have two or more theft convictions on your record. For amounts over $950, you could face felony or misdemeanor grand theft charges.
Does This Really Result in Criminal Charges?
Not in most cases. Usually, banks just try to correct the mistake and get their money back from the customer. For small amounts where the bank cannot recover the funds, most people still won’t face charges, but in cases involving substantial sums, criminal charges are not only possible but likely.
For you to be convicted of theft though, the prosecution needs to show that you knew the money was not yours at the time. As an example, if a teller entered $1,200 instead of $1,020 when depositing a check to your savings account, it’s reasonable to argue that you did not know or at least did not notice the mistake. On the other hand, if the teller accidentally entered $100,020 and you suddenly discovered $99,000 extra in your account, chances are you would notice unless you regularly get $100,000 deposits in your bank.
A $1.2 Million Bank Error
In a notable example of hefty bank errors, a woman in Louisiana was charged with both fraud and theft after she refused to return $1.2 million that was accidentally deposited in her Charles Schwab account instead of the $82 she was supposed to receive. The bank recognized the error within 24 hours of the mistake, but by that point, the woman had already transferred out much of their money and quickly used it to buy a new house and a new car. Charges were filed after the woman refused to return emails or calls from her financial institution for over a month.
What to Do if You Notice Any Errors on Your Statement
The best thing to do is to contact the bank. You don’t need to tell the representative the deposit was a mistake -after all, there’s always the chance that someone you know sent you a gift or that you simply about an upcoming deposit from your employer. This way, you can rely on the bank to give you information on where the money came from.
If you don’t recognize the source of the deposit or you know the amount you deposited was wrong, then you can notify the bank so they can remedy the error. In some cases, if the source of a mistake is never identified, you may eventually get to keep the money.
Whatever you do, do not transfer the funds out of the account or spend them. Just putting money from these errors in a savings account to earn interest while you wait for the mistake to be identified can still be considered theft. If the money is deposited into an investment account, don’t be concerned that the money is earning interest while the matter is investigated. The institution will typically deduct the associated interest after the issue is resolved.
If you have any questions about deposit errors in a checking, savings, or investment account, protect yourself by contacting a lawyer. An attorney like Peter Liss can help ensure you don’t do anything with the funds that could leave you in violation of state or federal laws. Please contact Mr Liss by calling (760) 643-4050.
