Legal Question in Credit and Debt Law in Texas

I regularly send one thousand dollars via AMEX Traveler's Cheques to my bank in the U.S.A. while living overseas. On one occasion, when 6 weeks had passed and the regular $1,000 in cheques had STILL not arrived at my bank in the U.S.A., I reported the cheques to AMEX as "lost in the mail".

They assured me that the cheques would be canceled, and promptly issued me a refund check in the amount of one thousand dollars. The following week, the cheques FINALLY arrived at my bank...and STILL cleared! I wasn't aware until much later that the cleared cheques were the ones I reported as lost (again, I regularly send $1,000, so assumed the latest deposit was another set of cheques I had sent).

My parents called me today tell me I received a FINAL NOTICE letter from AMEX, saying that if I did not refund the overpayment, legal action could be taken, and I would be assessed late fees and legal fees.

What legal action can they take upon me? And what legal responsibility am I held to, to refund the money (spent long ago) they overpaid in THEIR ERROR?


Asked on 10/04/09, 10:02 am

1 Answer from Attorneys
Donald McLeaish McLeaish&Associates;, P.C.

Without a lot of research, I would say the bank is right. When there is a unilateral error ie mistake by the bank to credit your account..the account holder cannot use the funds. If they do, it could be considered conversion ...or theft.. Hence, either refund or call them and negotiate how to treat it...and was it "their error" or the mail or yours?..good luck

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Answered on 10/09/09, 10:37 am


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