Q: I was paid over $5000 by a company to advertise on my car. I deposited it into my bank and spent it.
The checks came back as fake and now my bank wants me to pay all the money back to them. I'm on Social Security Disability and can't afford to do that. Since my bank is FDIC insured, won't they get their money back that way? Am I really obligated? After all, the only true victim is me if I'm responsible for paying it back.
FDIC insurance covers you (the funds in your deposit account) if the bank fails (kind of like going bankrupt). As an account holder you are responsible to the bank for all checks deposited into your account. This is covered by law (under the Uniform Commercial Code) in every state, and all banks have a provision in their account contracts or the terms and conditions that govern deposit accounts (you were probably given a booklet or print-out when you opened your account). Your bank can provide you with a copy of the terms and conditions governing your account if you lost your copy. In summary, you are responsible to repay your bank under state law and contract.
Unfortunately, you are the true victim, not the bank.
You can report what happened to the local police and they may be able to capture the wrongdoers and obtain court order restitution in criminal court.
Bruce Alexander Minnick agrees with this answer
Yes, its certainly is true that you are a victim of a scam that has cost you $5,000; but you have also received $5,000 and already spent it; right? So it looks to me like you are coming out even--at least right now.
If you can look at it from the bank's perspective, they did absolutely nothing wrong; so they are also a victim, right? But at least the bank has a way to recover their $5,000 loss: getting it from you.
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