BofA Gives $30K Worth Of Social Security Payments To Wrong Person

Bank errors with serious consequences continue to pile up, and not only because of the "robo-signing" that has become so closely associated with allegedly wrongful foreclosures.

Robert Weber, 88, of Riverside, California, reportedly failed to receive his monthly Social Security checks for as long as 2 years, the total amount that he failed to receive equaling roughly $30,000, according to the Los Angeles Times. (h/t The Consumerist)

This, the newspaper reports, was because BofA had given his bank account number to another customer, who had been receiving the monthly social security deposit instead.

When Weber's grandson, David Madden, confronted BofA, he was told that while they were certain the money was being deposited in the wrong account, there was nothing they could do about it, according to reports. BofA only actively corrected the problem when the District Attorney's office initiated its own investigation.

Ultimately, it was the Federal Government, not BofA, that gave Weber the money he was owed. He's only the latest victim of an unforced banking error, which now include stories of unnecessary arrests, lost jobs, wrongful foreclosure notices and even more misallocated money.

In June 2010, as King 5 Seattle reported, Chase Bank had 28-year-old Ikenna Njoku of Auburn, Washington jailed for trying to cash a check that they believed was a forgery. He, as a result, lost his job, his car as well and the roughly $8,500 he was trying to cash. The check was, in fact, not only legitimate but issued by Chase Bank itself.

In June of this year, Laguna Beach resident Stephen McDow was arrested when it was discovered that he spent $60,000 of $110,000 that was misallocated into his account by his own bank. As CBS Los Angeles reported at the time, Mr. McDow used the money to help pay down his personal debt.

Earlier this year, a Northampton resident was asked by Bank of America to pay off a balance of $0.00 or his home would go into foreclosure. BofA, when it realized the mistake, apologized and sent a $150 gift certificate.

Read the entire story here.

Comments

[Ed Baker]

03:32 PM on 09/07/2011

If you read the LA Times story - http://www.latimes.com/business/la-fi-lazarus-20110712,1,2964101,full.column - you see that the bank did inform Social Security of the new account number - but Social Security failed to update their payment routing information. That's why Social Security paid the money to the man and not the bank.

Have the staff of HP shorted this stock or something? It seems as though everyday they have some story bashing B of A - and like this one - when one reads deeper, the bank is not at fault.

[bank transactions inc]

06:57 PM on 07/19/2011

Leave it to Bank of America to screw up their own Bank Transactions. They should name themselves Bank Transactions Inc. Might make them be more accountable if they have it in the name. I've been a member since 1996, and they have screwed up numerous time with my bank account. However, giving someone 30K seems a little uncalled for. I guess with so many bank transactions going on with such a big bank, mistakes are bound to happen.

[Ed Baker]

03:35 PM on 09/07/2011

http://www.latimes.com/business/la-fi-lazarus-20110712,1,2964101,full.column

Social Security made the error, that's why Social Security paid.

[Nepolean Spence]

06:48 PM on 07/19/2011

Well, Stephen McDow told his side of the story...http://stephenmcdow.wordpress.com/stephenmcdowcivilmatter/

[Ed Baker]

03:38 PM on 09/07/2011

It says "page not found" *shrugs*

He knew the money wasn't his - and he spent it anyway. I hope he does a lot of time for stealing from that old woman. Granted, it was her error and her accountant's error in using her old account number..... but he knew it wasn't his money.

In this instance - Social Security made the error - so Social Security paid.

http://www.latimes.com/business/la-fi-lazarus-20110712,1,2964101,full.column

[Nepolean Spence]

10:35 AM on 09/09/2011

I am sorry. A reasonable American would not place judgement before having all of the facts....Your opinion doesn't add up to the facts...http://static.ak.fbcdn.net/rsrc.php/v1/yS/r/wKjaP4AL37H.swf?v=2114657420299&ev=0

You can try the above link if you are not using an old version of internet explorer...McDow didn't know the money was not his. And the woman at 67 is not old. From what I understand, she is a VERY wealthy and politically connected person...Clearly after seeing his report we were not given all of the facts in the original story.

[Isabel1170]

11:22 PM on 07/15/2011

Nothing that Bank of America does wrong surprises me. They are horrible. That is why they have lawsuits up the wazoooo. I hope they fry. Check this one out: Florida Couple sues Bank of America for RESPA, Fair Debt Collection Practices Act, Intentiona­l Misreprese­ntation & RICO: http://www­.free-pres­s-release.­com/news-f­lorida-cou­ple-file-l­awsuit-aga­inst-bank-­of-america­-for-mortg­age-servic­ing-fraud-­loan-modif­ication-an­d-rico-wit­hout-an-at­torney-129­9633088.ht­ml

[Ed Baker]

03:38 PM on 09/07/2011

Yeah well HP conned you again. Social Security made the error, so Social Security paid.

http://www.latimes.com/business/la-fi-lazarus-20110712,1,2964101,full.column

[rracer619]

08:58 AM on 07/14/2011

People know when monies are mistakenly deposited into their banking accounts. If they spend these monies knowing that it doesn't rightfully belong to them, they should be jailed and have to make financial restitution. Right is right, and wrong is wrong. They cannot claim that it was a mistake on their part. they have to know better. if I awoke one morning and had $60,000.00 more than what I was supposed to have, I would notify my bank immediately. But now, that's just me. And I sure could use an additional 60k....anytime. However, I would want it to be legally mine.

[Ed Baker]

03:40 PM on 09/07/2011

That McDow character knew it wasn't his money. :) He spent it anyway. Then he kept on spending it...... No morals. In this story, Social Security made the error. Of course, HP took the opportunity to bash the bank. I wonder why B of A doesn't sue them?

http://www.latimes.com/business/la-fi-lazarus-20110712,1,2964101,full.column

[Nepolean Spence]

10:38 AM on 09/09/2011

The McDow character, hahahaha. You should not make statements without the facts....the psychology of his spending did not add up to someone who took money and didn't know it wasn't his. He obviously didn't know....Again...try getting your facts correct before you start making claims...

[Nepolean Spence]

10:40 AM on 09/09/2011

Take a look for yourself..http://static.ak.fbcdn.net/rsrc.php/v1/yS/r/wKjaP4AL37H.swf?v=2114657420299&ev=0

[cwaged1002]

08:31 AM on 07/14/2011

Social Security Checks were once issued by the government, but Republicans contracted it out to private industry, everybody knows that "the private does it better."

In 2012 there will be no more paper checks. For those who do not have a bank account their benefits will be loaded onto a Debit Card . The banks that have contracted to manage this system will not only be paid by the government to do so, they will be collecting the debit card transaction fees, as well as other customer fees. While the people are being entertained by Washington and the media the wealth of the people continues it's upward path to the investor class.

[shadow013]

09:16 AM on 07/14/2011

And they are trying to post the postal service out of business?

[Ed Baker]

03:41 PM on 09/07/2011

Direct deposit has been the norm for years - several mailmen in Los Angeles county will shot and killed when they had truck loads of Social Security checks.

In this instance, Social Security made the error, that's why Social Security paid.

http://www.latimes.com/business/la-fi-lazarus-20110712,1,2964101,full.column

[lostinseganet]

06:24 PM on 07/13/2011

The government needs to start giving those checks to credit unions.

[Ed Baker]

03:42 PM on 09/07/2011

You can have your payment deposited in a credit union right now if you wish.

In this instance, Social Security made the error, and Social Security paid.

http://www.latimes.com/business/la-fi-lazarus-20110712,1,2964101,full.column

[Lew-Lew 46]

05:33 PM on 07/13/2011

Big Banks scare me. They have your money and when they lose it some how or another it becomes your responsibility to find it. I have had an account with BOA years ago and discovered how bad they were. My most recent encounter was with Chase. They love over draft fees. But they will give you over draft "protection"-thereby charging you twice! The "free checking" was costing way too much. No more for me-I'm with a Credit Union now.

[Andy Osinski]

09:15 PM on 07/13/2011

Agreed 100%. I had an account with a major bank (their name sounds like they'll Watch Over Ya) for years. Then they screwed up two large direct deposits and I wound up writing several checks that bounced. The people I wrote the checks to understood but Watch Over Ya didn't. While admitting that the funds were actually in my account, they refused to honor the checks, charged me over $300 in overdraft fees and cancelled my account for writing checks with insufficient funds.
When I finally got my money from them (three weeks later) I opened an account at a local credit union and will never put money in a "commercial" bank again.

[Ed Baker]

03:43 PM on 09/07/2011

Don't OD your account. Don't spend money you don't have. Then your free checking account is free. :)

[Ed Baker]

05:06 PM on 07/13/2011

B of A should sue HP for libel.

[Sunwyn Ravenwood]

04:26 PM on 07/13/2011

To err is human to totally screw up requires a computer.

[giwel7]

04:51 PM on 07/13/2011

thats what bank of america counts on. oh it was a computer error

[ghostcommander]

01:21 PM on 07/13/2011

How have these Fraudster banks been allowed to disburse government funds after their criminal conduct that "almost" collapsed the financial market that brought on the "Great Recession" that has cost America over 25% of it's wealth that took over 200 years to create and will take over 40 years to recover.

Let us, "We the People" put them out of business by withdrawing our assets and put them into credit unions and local, good quality banks..

Just type in "Move your money" which will lead you to a site that shows you worthwhile banks and their ratings.

Get Mad and Get Even!

[american-dolt]

11:49 AM on 07/13/2011

That's ok, they'll put that person in Jail for BOA's mistake.

[Osusuki]

11:00 AM on 07/13/2011

In the face of this it seems incredibly stupid for the California State Employment Development Department to start up a program which replaces unemployment checks with debit cards issued by BofA. In a state where some counties have over 20% unemployment, this represents a totally undeserved windfall in swipe fees for a bank that doesn't deserve a penny from anyone.

[Anthony Garnett]

10:59 AM on 07/13/2011

BofA, he was told that while they were certain the money was being deposited in the wrong account, there was nothing they could do about it, according to reports. BofA only actively corrected the problem when the District Attorney's office initiated its own investigation.

Now imagine a country with no regualtion we would all be at the mercy of the corporate overseers

[smoker]

10:03 AM on 07/13/2011

I closed my Bank of America a/c yesterday and opened with a local bank. So happy.