Q: Dad was the victim of fraudulent electronic transfers from his bank account. He has a level of senility and did not discover the theft until four months in. The bank tells us they will reimburse what was taken the first 60 days, but that’s it. Is the bank able to limit payment to 60 days?
P.G., Seal Beach
A: Electronic fraud is sadly all too common and has become increasingly sophisticated. The federal law is such that the account holder (your dad, or whoever is handling his affairs) has a duty to keep track of his account and to promptly report suspicious or criminal activity. The bank is liable for the amount of the theft during the first 60 days from when it started, but after that, the account holder (I am sad to say) is probably not able to recover more from the bank. You will want to consult with qualified counsel to assess the circumstances — including to evaluate if by any chance someone at the bank was involved — but the law can be harsh. So, bottom line: Keep close tabs on what is going on with your bank account!
Q: We have a dispute with our bank and plan to sue. We met with a lawyer who said we have to get a copy of our account agreement. The bank referred us to an online link (they said “that’s the basic account agreement”). We have no recollection of agreeing to the terms and conditions we found there, which includes a requirement we arbitrate all disputes. Are we stuck?
A.S., Newport Beach
A: The lawyer’s suggestion that you get a copy of your account agreement is sound. What I think he or she means is the account agreement you signed, be it via electronic signature or otherwise, or which in some manner you have acknowledged applies to your account. It can be frustrating to learn the terms and conditions to which you are (or may be) subject because you do not recall signing, or do not recall receipt of the terms and conditions, let alone going through them. Often, banks have their basic account terms and conditions online, but to…
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