Backstory: in December 2014, I was short $800 for my rent, so I needed money so badly I posted on kijiji about a loan and got some response, most are asking for upfront fees which I deemed scams, one guy by the name of Michael Paczkowski offered me $1000 so I agreed, long story short I ended up having $11,000 check sent to me because of an error writing the amount and I didn't want to wait another week to correct it. I deposited the check and this guy instructed me to send $9,000 to a guy in US and $1,000 to some country in Africa, and three months later, Scotiabank phoned me in regards to a fraudulent check. The check came from a legitimate business in Mississauga that's why I think my bank let it through.
Now Scotiabank deactivated my account, agreed to pay back the funds. But the thing that aggravates me is that they won't let me take my money, I have a lot of bills and rent payments to take care of, I work two jobs and don't have time to go to the branch to do a simple balance check and the manager is only working weekdays. We agreed to pay $300 each month and even stated that I'll pay more towards the balance if I have extra.
Can they do this legally and do you think this is a harassment? I give money to my parents on a monthly basis and budget my funds everyday and they won't even let me withdraw by hundreds if the manager isn't there.
Of course the bank can close your account. You are actually lucky they didn't file felony bank fraud and money laundering charges against you. People are sitting in jail 3-5 years after falling for these common scams.
It's illegal to charge upfront fees on a loan. And if a company writes the wrong amount you can't cash that check. It's your responsibility to write Void across the check and return to sender and have them send you a check for the correct amount
That was such a common scam I'm surprised you fell for it. Unfortunately you now owe the bank the whole amount, and yes they can keep any money of yours that they have.
It is completely legal on the bank's end. Being told to send money to people in other countries should have tipped you off that it was a scam. There was no 'error in writing the amount' that the check was for $11,000. It was a money-laundering scheme ~ with you being what is called the 'mule'. That's why *your* bank account was deactivated. (You are actually lucky that you didn't get arrested for being part of this scheme, even if you didn't realize it was a scheme.)
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There is no money. That check bounced and you will be paying $300 a month to the bank for about the next four years. You are probably going to have to start using payday check-cashing places for your financial needs now. It's unlikely that any bank will let you open an account with them after something like this, sorry.
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It is indeed questionable about how banks will allow checks (especially large checks) to go through without verifying them first.
Yes, they can do it legally. No, it is not harassment.
