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  1. #1

    Default Demand Letter

    My question involves a consumer law issue in the State of: MO

    "Hello,
    Received a demand letter from a financial institution asking me to pay them back for a transaction that occurred due to an "administrative error" with their computer system. They did not provide any documentation that this error actually occurred. Before I waste my time going through my bank and brokerage accounts, and even if I find that this demand is legit, what should be my first response to them?
    Thanks a lot!"

  2. #2
    Join Date
    Mar 2013
    Posts
    17,814

    Default Re: Demand Letter

    Assuming that you have already verified that the financial institution actually exists and that you once did business with them at some level, common sense would dictate that you respond by asking for documentary evidence of the debt. Make sense?

    Does the letter say when the debt was incurred? How much are they asking for? MO has a long statute of limitation for a lawsuit based on a written contract (10 years). Is the account still active? Do they have any of your money that they can use as a "set off" if you don't pay?

    What you do or don't do depends on a variety of factors that you haven't yet shared.

  3. #3

    Default Re: Demand Letter

    Thank you for your reply!
    1. I have used them in the past to transfer funds from my US bank to another bank overseas.
    2. They claim they credited my account due to an "administrative error" with their computer system and they want to be repayed.
    3. When I login I do not see the credit they claim on my transaction history.
    4. They refuse to provide any documentation that this error actually occurred.
    5. If I don't pay them in 2-3 days, they will take me to court, so they say.

  4. #4
    Join Date
    Oct 2006
    Posts
    16,129

    Default Re: Demand Letter

    Quote Quoting mc352@yahoo.com
    View Post
    Thank you for your reply!
    1. I have used them in the past to transfer funds from my US bank to another bank overseas.
    2. They claim they credited my account due to an "administrative error" with their computer system and they want to be repayed.
    3. When I login I do not see the credit they claim on my transaction history.
    4. They refuse to provide any documentation that this error actually occurred.
    5. If I don't pay them in 2-3 days, they will take me to court, so they say.
    How do they want to be paid? This sounds a little scammy.

  5. #5

    Default Re: Demand Letter

    That's exactly what I am trying to find out and I would never give any credit to their emails. Assuming it is all real, I really can't involve an attorney or accountant without pay them upfront. Any legal and/or accounting expenses due to their "administrative error" should be their responsibility? Any other expense derived by court findings and actions is also their responsibility, regardless if they are right or not?
    Thanks a lot!

  6. #6
    Join Date
    Mar 2013
    Posts
    17,814

    Default Re: Demand Letter

    Quote Quoting mc352@yahoo.com
    View Post

    4. They refuse to provide any documentation that this error actually occurred.
    If it was me I would tell them to pound sand until they do.

    Quote Quoting mc352@yahoo.com
    View Post

    5. If I don't pay them in 2-3 days, they will take me to court, so they say.
    Are you afraid of court? If you are, then pay. If you aren't, tell them where to stick their threats.

    Quote Quoting mc352@yahoo.com
    View Post
    Any legal and/or accounting expenses due to their "administrative error" should be their responsibility? Any other expense derived by court findings and actions is also their responsibility, regardless if they are right or not?
    Not right. In the American legal system each party to a lawsuit bears their own attorney fees unless the contrary is specified in the contract.

    If you get sued you pay your lawyer, they pay theirs.

    Just what kind of financial institution is this?

  7. #7

    Default Re: Demand Letter

    Not afraid of going to court, my concern is the expenses I could incur. Is it ok for me to replay... You ask me to pay due to an "administrative error", yet you do not provide any documentation to substantiate that your "administrative error" is correct. I am willing to hire a law firm to investigate your issue. Are you willing to pay for any legal and accounting expenses to verify this problem? Note that should you decide to have a court decide that your "administrative error" is correct, you may still be responsible for travel expenses, coronavirus, etc.

  8. #8
    Join Date
    Mar 2013
    Posts
    17,814

    Default Re: Demand Letter

    Quote Quoting mc352@yahoo.com
    View Post
    I am willing to hire a law firm to investigate your issue. Are you willing to pay for any legal and accounting expenses to verify this problem? Note that should you decide to have a court decide that your "administrative error" is correct, you may still be responsible for travel expenses, coronavirus, etc.
    No, don't include any of that. Scammers and legitimate creditors see that kind of thing all day, every day, and know it's BS.

    Just keep is simple. No proof, no owe.

  9. #9
    Join Date
    Jan 2011
    Posts
    343

    Default Re: Demand Letter

    Small claims limit in MO is $5,000. Are they demanding more or less than that?

    Do you have a copy of this financial institution's contract and terms of service for the transactions? I'm a bit surprised that somewhere in their terms of service there's not language stating that they have the right to withdraw erroneous deposits from your account if they do make a mistake.

    When you contacted the financial institution did you use the contact info on the letter, did you use Google to get the company's contact info, or did you get it from an old statement from when you used their services?

    Did the letter refer to a specific account number, transaction date, amount, etc.?

    How do they want to get paid?

  10. #10
    Join Date
    Feb 2020
    Posts
    288

    Default Re: Demand Letter

    Steve Lehto is a Michigan attorney who has hundreds of videos on his U-Tube channel. He's a very sharp guy..see for yourself. He says, in at least Michigan, that a bank has 30 days to find their mistakes. Otherwise, the mistake cannot be fixed after that.

    In his case his client was accidentally given $12,000 and not discovered by the bank until 90 days later. His client kept the money.

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