Legal Question in Banking Law in Illinois

Sons Mother set up account step dad abusing

My Son Daniel recently found out his Mom & Stepdad set up a savings account in 1999 with him as the principal and them as secondary.He was 13 had no knowledge or use of account. His Mom & Stepdad had atm cards. In June Stepdad deposited improperly endorsed check for 300 and took out the money putting account in the - 300. CEFCU wants 300 from my son as principal owner of account he knew nothing about. My father wants my Son to pay it to keep him out of trouble. My Son is now 20. He works at a machine shop very hard for his money as he is disabled. Is my son liable? He was 13 when this account was set up. They have signature card wich may be his but was not signed at bank as it was signed a day or so later. This situation ifuriates me as I am the custodial father and had no knowledge either. My ex and her now ex husband are trash. She has paid zero in support. She was divorced from her 3rd husband at the time he pulled this crap.


Asked on 12/19/06, 8:13 pm

1 Answer from Attorneys
David K. Staub Staub Anderson LLC

Re: Sons Mother set up account step dad abusing

From the facts that you have given, I doubt very much that the bank could force your son to pay an overdraft on an account created without his knowledge when he was a minor.

On the other hand, what are you going to do if the bank keeps pursuing it and reports it to the credit reporting agencies? While I think the bank should back off, can your son afford to ruin his credit rating over a $300 dispute? If he ever has to borrow to buy a car, even if he can get credit with the mark on his record, the difference he would pay in interest over the life of the loan could make $300 look like small potatoes.

David K. Staub, an Illinois business law attorney

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Answered on 12/20/06, 1:54 am


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