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Old Today, 10:26 AM
 
10,932 posts, read 4,432,878 times
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Quote:
Originally Posted by rstevens62 View Post
So what purpose do they carry deposit insurance for then? What scenario would the insurance company be on the hook for the money?
I really don't know.

Maybe if the bank was unable to locate where the deposit actually went, or, in this case, will be unable to recoup the entirety of the 120K.
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Old Today, 10:30 AM
 
10,932 posts, read 4,432,878 times
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Quote:
Originally Posted by Delahanty View Post
Wrong.

That money is no more theirs because the bank made a mistake, than money they found on the street would be if they saw the person who'd dropped it, looking for it.

This couple knew that it wasn't their money, yet kept it. Hence, the criminal charge.
I think it might be a little more nuanced.

Like with the flat screen TV that guy had that was mistakenly delivered to his house, you don't have to proactively try to return stuff that's accidentally been given to you. But when the true owner shows up demanding it, you have to give it back.

The guy with the flat screen decided he wouldn't give it back, and he was also charged with felony theft.

(An aside, I looked this guy in the bank deposit case up, and he's got 30 criminal records. Not surprising).
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Old Today, 10:38 AM
 
Location: Kentucky
592 posts, read 334,198 times
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I once found a kid on my dock at the lake. Never once thought about keeping him...
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Old Today, 10:42 AM
 
3,949 posts, read 2,055,866 times
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Quote:
Originally Posted by rstevens62 View Post
Isnt this why the banks carry insurance?



If it was the banks fault, the insurance should be on the hook, its found money to the people whose account it was accidentally deposited in.
Wrong! That's kid stuff.

That money didn't belong to them no matter how you spin it.
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Old Today, 10:44 AM
 
21,463 posts, read 17,049,955 times
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Quote:
Originally Posted by Arcenal352 View Post
At the very least, WAIT a while -- a LONG while, to see if it's going to get reversed.
Eventually the bank is going to do an internal audit, even if it's 3 years from now. There's no safe time limit IMO.
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Old Today, 10:45 AM
 
10,932 posts, read 4,432,878 times
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Quote:
Originally Posted by ocnjgirl View Post
Eventually the bank is going to do an internal audit, even if it's 3 years from now. There's no safe time limit IMO.
You're right. Although as I said earlier, the customer has a limited time frame to resolve an error that's in the bank's favor, the bank has no time limits whatsoever to reclaim their funds.
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Old Today, 10:48 AM
 
21,463 posts, read 17,049,955 times
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Quote:
Originally Posted by rstevens62 View Post
So what purpose do they carry deposit insurance for then? What scenario would the insurance company be on the hook for the money?
Are you talking about insurance like FDIC? That isn't to protect the bank, it's to protect consumers who have accounts at the bank in case the bank goes belly up, like in the Depression, or what could have happened with AIG and a couple others without the bailout.
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Old Today, 10:53 AM
 
10,605 posts, read 12,539,701 times
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Stupid case but if they present it in front of the right jury they could be found innocent! Just need 12 people that think like them!
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Old Today, 10:58 AM
 
Location: State of Transition
79,499 posts, read 71,916,611 times
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Quote:
Originally Posted by Delahanty View Post
They finally admitted that they knew it wasn't theirs, but spent it anyway. According to reports, these mistakes happen more frequently than we'd care to know, but I can't imagine not notifying the bank.

They couldn't wait to spend it, either--and on, among other things (including giving $15K to a friend in need), four vehicles. What else is there when you hit the jackpot?

Yeesh.
Why would two people need 4 new vehicles in addition to whatever one/s they already had? What would they do with them all? Where to park them? How to afford insurance for all of them (not to mention periodic maintenance), once the windfall is spent?

Incredibly dumb. And now, how are they going to come up with the $$ to repay the bank? Sell the vehicles? They'll still be in debt, due to instant depreciation.
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Old Today, 11:06 AM
 
Location: Brooklyn, New York
3,828 posts, read 3,919,619 times
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Quote:
Originally Posted by rstevens62 View Post
So what purpose do they carry deposit insurance for then? What scenario would the insurance company be on the hook for the money?
Bank insurance (FDIC) is there in case the bank is unable to pay your deposit back to you, the insurance would pay out. It prevents the "run on the bank" scenario, where when the public perceives that a bank is going bankrupt, they all rush to get their money out of the bank... causing the bank to actually go bankrupt when it wasn't going to. Since your deposited money is insured (up to $250K) you don't have to rush to withdraw your funds from a failing bank.
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