Legal Question in Banking Law in Texas

Re: bank overpaid son $500.00

This is one of those situations in which doing the right thing is also the least stressful and least expensive thing to do. Let's look at those is reverse order.

The bank can sue him to get the money returned. If the situation is as you describe it, the claim would be for "money had and received," which is a fancy way to say your son got something to which he was not entitled. It could also be treated as a loan to your son, even if he did not sign anything. A judgment against your son would likely order that he owes the $500, interest on it, and costs of court. Court costs can range anywhere from $200 and up, depending on where he was sued. The court could also award the bank attorney fees, which are variable, but no one likes to pay the other side's fees. From a strictly cost versus benefit point of view, returning the money is less expensive, since $500 is less than $700 (or more).

Now for the stressful side of the equation: getting served is not high on most people's list of enjoyable life events. If your son decides to fight to the bitter end, he will get to worry about the case, take time from work to attend trial, and then deal with the hassle of post-judgment procedures. In comparison to this scenario, simply returning the $500 is easier and less expensive.

If your son does not have the money, the bank might be open to a payment plan. However, if I were in your son's position, I would make haste to settle with the bank.

Hope this helps.