Expert: Jim Meadows - 4/20/2009

Question
My Father recently passed away leaving no will, Never married but had a live in girlfriend of about 12 yrs. she stated she did not have the money to pay the funeral expenses so I paid them, my father had several small accounts with no other signers. My siblings and I had an attorney comprise a state of IL small estate affidavit to claim my father unallocated assets. when I presented the bank with the paper work we learned that the girlfriend made multiple debit card transactions and wrote several checks to herself and overdrew the account, I filed a dispute with the claims dept which was denied stating that my father failed to exercise ordinary care! causing the forgery. Do I have to except this and do I have any other recourses???

Answer
Anita,You've given the bank the opportunity to do the "right thing" and they have declined. This probably means they think that their position is defensible.

You didn't say how much time has elapsed between the transactions and notification to the bank. The longer the time, the weaker the claim. Bank contracts typically specify that forgery claims must be brought within 30/60 days of the statement date.

The bank among other things will likely say that failure to notify the bank is evidence of consent by your father to the transaction.

If the amounts are substantial you might wish to discuss with an attorney but otherwise it will expensive to go against the bank. The law is on the side of bank. Your case involves disputed facts which are hard to prove. Sorry I don't have better advice. Keep in mind that the bank writes the contracts we sign and lobby for the laws that are adopted in your state. Jim