Legal Question in Banking Law in California

I am unsure if this is the right section, so please change it if it is not.

Basically I signed a MPN for a $15k educational loan 3 years ago issued by Bank of America, cosigned by my uncle. The funds were disbursed into a joint account at Navy Federal with my father. He withdrew all of the funds at once without my knowledge and gambled them away. After some grappling with myself, I decided to let it go and just move forward. Well today I found out that 2 years ago he used the same MPN to get another $20k which he withdrew from the same account.

Do I have any case or protection against this? The loan issuer never notified me that the loan was being renewed, the bank never told me a 20k deposit had been made or withdrawn. I am willing to criminally prosecute or do whatever is necessary as I no longer view him as a parent.

I know the chances are slim, but if anyone knows any sort of law or protection against cases like this I beg of you, please help me since I cant make the payments on this one and keep my home.


Asked on 7/05/10, 10:44 pm

1 Answer from Attorneys

First off you need to file criminal charges. There is no relief you can hope to get if you are not persuing all legal channels against the perpetrator. You can't say, I'm just going to let it go, but don't make me repay my loan, please.

The next thing you need to do is find out how he got a further advance. If you and your uncle were the only borrowers, howe did your father get another disbursement? That is probably where your chance of relief lies, in failure to follow proper procedures for disbursements.

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Answered on 7/06/10, 11:15 am


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