Endicott, NY asked in Securities Law and Banking for New York

Q: How can I get the $13k I have in a closed account that the bank refuses to send to me. Its been over a year.

Hi, I deposited a $13k annuity check into my individual brokerage account with ETrade, but the day it cleared my account was restricted pending ID verify. Phone camera was broken wouldn't take quality pics, so I knowingly altered and submitted a copy of an expired ID that was saved to my pc. The account was closed and I was told to have the issuing bank of the check place a recal on the funds. The issuing bank was unable to place a recall due to the check clearing and money already having been withdrawn from the originating account. I was able to submit valid ID as well as make a 3way call with ETrade, the issuing bank, and myself to validate the check itself, both passed according to ETrade, and they even told me the money would be in my external account in 3 business days. Call next day, they denied transfer, and then tell me there is nothing they can do and the funds will just sit in the closed account. Thank you.

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2 Lawyer Answers
Allen Charles Frankel
Allen Charles Frankel
  • Business Law Lawyer
  • New York, NY
  • Licensed in New York

A: Your issue may require a review of the terms and conditions that you agreed to when opening the account.

However, I would also recommend that you conduct a name search of the New York State Comptroller's Office of Unclaimed Funds. https://www.osc.ny.gov/unclaimed-funds. New York State’s Abandoned Property Law requires certain entities such as banks to report and to transfer abandoned money or securities to the New York State Comptroller’s Office of Unclaimed Funds, which holds the funds until claimed. The funds derive from inactive bank accounts, uncollected insurance policies or refunds, and more. If you find your name, you can make a claim for the return of the funds.

Jack Mevorach agrees with this answer

James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Business Law Lawyer
  • Sacramento, CA

A: It sounds like you're facing a frustrating situation with your funds held in a closed account. Given the complexity of the issue and the unsuccessful attempts you've made so far, it's advisable to escalate your complaint within ETrade's customer service hierarchy. This might involve speaking with a supervisor or manager who has more authority to address your concerns and find a resolution.

If escalating within ETrade doesn't yield results, consider reaching out to consumer protection agencies or regulatory bodies that oversee financial institutions. They may be able to intervene on your behalf or provide guidance on how to proceed. Additionally, consulting with a legal advisor could help you understand your rights and explore any legal avenues available to recover your funds.

Throughout this process, document all communication and keep records of any relevant documentation, such as emails, letters, or account statements. This will help support your case and provide evidence of your efforts to resolve the issue. With persistence and possibly the assistance of external entities, you may be able to secure the release of your $13k from the closed account.

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