CHICAGO (CN) – RBS Citizens Bank makes millions of dollars by keeping mum when customers make deposits with errors in the bank’s favor, a depositor says in a class action.
Lead plaintiff Michael Stinson dba Dial DJ Service sued RBS Citizens Bank and its subsidiary, Citizens Bank of Pennsylvania, in Cook County Court.
RBS Citizens Bank operates 1,400 branches in 12 states.
“Errors in customer deposits occur daily,” Stinson says in the complaint. “Customers depositing currency, coins and checks are required to complete a deposit slip detailing the amount of currency, coins, and individual checks. Customer calculations and tabulations frequently are in error; the customer inaccurately adds the items to be deposited, noting a lesser amount to be deposited whereas the actual amount is greater.
“Customers are given confirming deposits slips from Citizens Bank reflecting the amount the customer believed it deposited, which coincides with the customer’s deposit slip. Upon information and belief, it is Citizens Bank’s policy to discourage branch tellers from adding or calculating the currency, coins and checks to confirm the amount set forth by the customer on their deposit slip.
“Deposits by customers into their Citizens Bank accounts are retrieved daily from each branch location and delivered to Citizens Bank’s various regional Proof Departments which then adds or calculates the actual deposit, crediting the customer account accordingly. Citizens Bank’s Proof Departments confirm the actual amount deposited based upon the currency, coin and checks submitted.
“When Citizens Bank discovers an error in the banks’ favor reflecting that the customer noted a lesser amount on the deposit slip than actually deposited, the differential is retained by Citizens Bank and diverted to, upon information and belief, at least two (2) different non-customer accounts maintained and controlled by Citizens Bank.”
Stinson says that “as an example of one of likely thousands of transactions, on January 31, 2011, plaintiff deposited a single check into his Citizens Bank account noting what he believed to be a deposit of $100.00. Plaintiff erred in its calculation; the actual deposit was $150.00. However, Citizens Bank credited plaintiff $100.00 and credited account number 9344820186 with $50.00. Account 9344820186 is not plaintiff’s account but an account controlled and maintained by Citizens Bank.”
Stinson claims the bank has diverted millions of dollars into its accounts this was.
He seeks restitution and punitive damages for breach of contract, conversion, misappropriation of funds, conspiracy, and unjust enrichment.
He is represented by David Thollander, of Lombard, Ill.
A similar federal class action against the bank last year was dismissed with prejudice. Plaintiffs in that case also were represented by Thollander.
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