Legal Question in Banking Law in Illinois

NSF Bank Error

Bank Error caused a returned check to a regional grocery chain who now holds the check. They are demanding the sum of the check and a processing fee.

The bank provided me with a letter citing bank error.

Contacted the grocer with letter, reply was that they do not care about the error and will submit the claim to a collection agency.

I requested that they process the check normally as the funds are in the account, they refused. I requested return of the physical check to ensure no future processing of the check, they likewise refused. I requested waiver for the processing fee, they refused.

Do I have any legal recourse in this matter?

Thank you.


Asked on 11/11/02, 4:27 pm

1 Answer from Attorneys
Lawrence A. Stein Aronberg Goldgehn Davis & Garmisa, LLC

Re: NSF Bank Error

Tell the bank the amount of the penalty for bouncing the check, and insist that it credit your account for that amount. Then, after confirming the receipt of the credit in the correct amount, pay the grocer in cash the amount of the check plus the penalty, in exchange for the returned check. Then destroy the returned check, and you are even.

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Answered on 11/11/02, 4:58 pm


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