Legal Question in Banking Law in Wisconsin

Question about illegal withdrawal?

Can a business forge your authorization to withdraw funds from your account?

My wife had this happen to her. She owes money to one of the hospitals in town and they took the liberty to just go ahead and withdraw the money without her permission. She understands she owes the money, but never gave any authorization for them to do so.

They ended up using a fake check #9999 and used prior information they had on record to obtain the funds.

Who is responsible for this? Is it the collector, the bank or both? The bank never returned the money, never covered any over draft charges, and basically said it could take up to and over a year to investigate the matter. I thought banks were insured so the people money in the banks was also insured. Wouldnt this fall into theft basically?

Should my wife pursue a lawyer to go after both the bank and the collector since the bank doesnt seem to be doing anything? Since this happened our account has been suffering numerous overdraft and returned checks since the amount the collector withdrew exceeded my wifes paycheck.

Running out of characters to use. It would be greatly appreciated for any legal advice one could give us.

Thanks sorry didnt have enough space to explain it all.

1 Answer from Attorneys

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