Banking industry can't explain what measures would stop a $400 check from clearing for $4K | Call Kurtis Investigates
SACRAMENTO – Chase Bank is accepting responsibility for a mistake that caused a check written for $400 to deduct $4,000 from a Sacramento viewer's Wells Fargo account.
But the question neither bank can answer is why it wasn't caught before 10 times the amount of the check left Gerald Monroe Mann's account.
"I'm not rich. Money is important," Mann said, referring to the fact Wells Fargo claimed it had 10 days to investigate, leaving his account nearly $900 in the red.
"Now I'm screwed because you screwed up. Not cool," Mann said.
Wells Fargo blamed the bank of the person who cashed the check. In this case, it was Chase, which said its teller entered $4,000 instead of $400.
But the Call Kurits team kept pressing Wells Fargo and Chase for the processes in place that should've caught this type of error before it left someone's account.
Neither bank would say.
"We relied on the bank which accepted the check to properly debit the amount as written on the check," Wells Fargo said.
So we reached out to the trade organization for state banks, the California Bankers Association, which said, "errors happen for a variety of reasons but there are important safeguards in place to protect customers."
CBS13 wanted to know more about those safeguards, but the group never said.
"The bank where the check was deposited is liable for accurately capturing payment information and requesting funds from the payor's bank. Funds are commonly credited back on a provisional basis, typically on the same or next day pending the outcome of an investigation," the group said.
It didn't happen in Mann's case. He was left without his money, for more than a week.
"When they make a mistake, it shouldn't be the person's problem," he said.
"We are pleased we could help resolve this matter," Wells Fargo said. "Our investigation confirmed the amount discrepancy was due to a processing error by the bank where the check was deposited, and thus they requested funds for the erroneous amount. It would be inaccurate to say that Wells Fargo interpreted the wrong amount."
Chase issued an apology, saying the check was processed incorrectly.
"Once identified, we quickly corrected the error. We strive for accuracy and are committed to promptly resolving any issues," Chase said.