Legal Question in Banking Law in Illinois

Bank fraud on my business account. over a month ago. Bank still does nothing about it. I complained on Friday again. I was then called and told they are terminating our relationship immediately. My business is about writing checks. I am a staffing company. I need time to get a new bank and checks Can they do this to avoid being liable for the fraud They cleared duplicate check numbers


Asked on 10/22/17, 10:53 am

1 Answer from Attorneys
David K. Staub Staub Anderson LLC

You have to read the terms of your account (which is a contract) to see how they can terminate your account. The answer is probably that they can close your account, but the account agreement should spell it out. That does not mean that they can avoid being liable for fraud that has already occurred, however. If they are liable, closing your account does not change that. They may feel that your particular business or possibly lack of controls poses a risk of future fraud, or may have some other reason for closing your account, but they cannot not change the past liability by doing so.

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Answered on 10/24/17, 4:09 pm


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