Legal Question in Banking Law in

BANK ERROR and INTERESTS

It is an online broker & bank but we only have a brokerage account

- 4 years ago we sent a wire of $50,000 on the account but this wire arrived 2 times (50,000 broker error in our favor)

- error unnoticed by both sides during 4 years

- the money was invested mainly in stocks

- during the 4 years, account value was down 40 % (stock depreciation)

- we never withdrew money from the account

- 4 years after the wire, broker found the error and withdrew the 50,000 $ without advising us nor ask our consent

-because the account is invested in stocks balance became negative

- we wired money (50000 $) to restablish the balance (thinking it is the end of story)

- Then the broker withdrew 3500 $ again without advice nor consent

- we asked explanations, broker said it was the interests and dividends of the error 50,000 wire during the 4 years

but :

- have they the right to withdrew money without our consent ?

- there was almost no interests on the period (account invested in stock). How can they demand interests ?

- How can they ask both for dividends and get back the whole amount of their error(50000) ? the actual value today is 60% of 50000 (stock depreciation)

Any legal advice welcome. Thanks.

1 Answer from Attorneys

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