May 16, 2008 10:36 pm US/Eastern
Bank Sues Retired Couple After Deposit Error
PITTSBURGH (KDKA) ―
Suppose more than $250,000 suddenly showed up in your bank account. Would you spend it?
The Altoona branch office of First Commonwealth Bank says Herbert and Becky Starbird did.
In a complaint filed in Blair County, the bank alleges that more than $280,000 was accidentally deposited into the Starbirds' bank account last October and the couple spent more than $177,000 before the bank discovered their error in February.
Local attorney David Salzman, who is not involved in this case, says the general rule is pretty simple.
"If you know it's not yours, then it was deposited by mistake. And in all likelihood when the mistake is discovered, the person whose money it is is going to want it back," he said.
Now there is a factual dispute. The Starbirds say they tried several times to turn the money back to the bank. The bank says at no time were they alerted to this mistake.
The Starbirds claim the bank told them repeatedly that there was no mistake. So they began spending the money thinking some anonymous do-gooder was helping them out.
"My kids like to believe in Santa Claus as well, but it would be highly unusual that an anonymous benefactor would simply put money in your account," Salzman said.
But the Starbird's attorney says First Commonwealth Bank is just trying to use its powerful position to strong arm the retired couple.
"This lawsuit could actually be beneficial because now we can get in front of a jury, in front of some people who would listen to this thing and come up with a fair resolution, instead of just have the bank strong arm us or muscle us," Thomas Dickey, the couple's attorney, said.
Ultimately, a jury will decide the facts of this particular dispute. But lawyers say that as long as you know the money in your bank account isn't really yours, you shouldn't spend it.
And that's true even if your bank won't own up to their mistake when you call them.
Bottom line: It's not your money, so don't act like it is.
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