Dear Attorney,

My US bank reported a fraud on Chex Systems and now the old bank I’ve been using for seven years is closing all of my personal accounts and two of my business accounts.

I deposited two envelopes using the ATM, one with $400 and the other with $100. I mistakenly put the $100 on the other envelope.

I didn’t withdraw any money until on the fifth business day. And now the bank has reported on Chex Systems the fraud activities on my deposit.

It’s a nightmare because all my old accounts are being closed due this report. I called US bank and they said they can’t do anything.

It’s really hurting me that I’m comfortable with my old account.

Dear Reader,

What? I’m not sure I understand your letter enough to answer you, but I’ll give it my best shot.

Chex Systems is charged with accurately reporting fraudulent or non-sufficient funds activity on your checking account. They rely entirely on reports provided by your bank.

If your bank has incorrectly reported something to Chex Systems in connection with your account activity, you can contest that. (See my column from two weeks ago for information on how to go through that process.)

You should also contact your bank again. Talk to someone who has the Advertisement

[ Berry-Bell and Hall Mortuary ] authority to make the necessary corrections or to explain their position as to why they cannot.

You either committed fraud (although it’s not clear how from the tone of your letter) or someone thinks you have (which is also not clear).

Either way, you need to straighten this out.

Dear Attorney,

My brother filed for bankruptcy recently and his bank froze his funds. He doesn’t even owe them money.

Can they do that?

Kevin, Temecula

Dear Kevin,

If I were a betting man, I’d put my money on your brother banking at Wells Fargo because that’s the only bank I’ve seen do that.

I’d also wager that he has a balance of over $5,000 because they don’t touch it otherwise.

The banks can freeze your brother’s funds just because he filed bankruptcy and they won’t release them until the bankruptcy trustee authorizes them to or the case discharges.

If your brother’s attorney exempted the funds from liquidation in the bankruptcy, he can ask the bankruptcy trustee to sign a stipulation for the release of the funds and then serve this on the bank.

If the trustee won’t sign a stipulation, he’ll have to file a motion to turn over the funds.

Either way, he gets his money back, it’s just terribly inconvenient and he could incur attorney’s fees.