I signed a personal loan for my daughter. Instead, the bank withdrew money from my father’s account. How could this happen?



Dear Quentin,

My daughter took out a personal loan from the bank three years ago and I had to co-sign the loan due to her age and lack of credit. The bank processed the loan documentation according to normal protocol and asked my daughter before closing if she wanted to automatically debit her checking account every month, which lowers the interest rate by half a percentage point, so she agreed.

By the way, I use a different bank, but I am in my elderly father’s checking account as he is in poor health and has been in and out of the hospital for more than I can count over the past few years.

“I agree it should have been discovered earlier, but I don’t have access to my daughter’s account and she saw that the loan was being paid off every month.”

Fast forward to about six months ago. My father and I were checking his monthly expenses, we saw a deduction of the amount X, which was listed as payment on the loan. He has no outstanding loans, so it took us quite a while to figure out what was being withdrawn each month (phone calls to the bank took weeks to get answered).

It turns out that my daughter’s loan was paid from my father’s checking account, not my daughter’s checking account. Then I asked my daughter if she was paying the loan. We checked her checking account, but no deductions were made.

The bank told us that we should have seen this earlier. They said that all they can do is deduct the amount that was paid from my father’s account from my daughter’s. I agree that this should have been discovered earlier, but I do not have access to my daughter’s account and she saw that the loan was paid off every month. so she didn’t doubt it.

My problem, and of course my father’s problem, is that the bank made the mistake of specifying its account number as the checking account from which the loan was to be paid, instead of my daughter’s account. Isn’t the bank responsible for helping to correct the situation?

Father stressed

Dear stressed,

I have questions, and you don’t need to be Inspector Poirot to answer them.

How did your father’s bank account number appear on the loan application? Who filled it in and who, besides yourself, had this account? This seems like a good place to start. Did you fill out the form and mix up the two accounts? Are you a co-owner of your father’s account or are you listed as a co-owner? If you are a co-owner and have provided an incorrect account number, you are responsible as the co-owner of the loan. Did your daughter write down your father’s bill instead of hers? If so, where did she get your father’s bank account number?

Are you a co-owner of your father’s account or a co-owner? If you are a co-owner and added the wrong account number, you are responsible.

If your father’s bank account number was not considering the original documents, the bank made a mistake. If this is the case, given that your father is not a third party in this loan, the bank must fully rebuild his account. If a bank puts money into the wrong account – an unforeseen amount of $ 1 million – and a person spends it, the bank may turn to that person for money. It wasn’t their money. The converse is also true. The bank will not take money from your father’s bank account.

Did your daughter say that she saw the loan being paid off, but she never noticed that the money had not been withdrawn from her own checking account for three years? If so, she should be rich in cash, and in theory, she should have no problem paying your father money that has been withdrawn from his account in the past three years. Or did she notice that the loan was being paid off, did not see the withdrawal and her account looked very healthy under the circumstances, and decided to either ignore or not act?

Someone dropped the ball here: your bank, your daughter, or your wellness.

Read also: I want to get my husband’s life insurance policy. He says that “ hell will freeze over ” before he becomes more dead than alive

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