Long story short, we were part of a large class action lawsuit against a major bank. They contacted us a few months ago letting us know that we had been lied to by. By employees of this bank years back when we were trying to refinance. They had told us we were not eligible for a good rate, and roped us in to an arm loan.
Turns out, we WERE eligible for a better fixed rate and they calculated an estimate of overage we paid in interest. They also offered another estimated amount if we could prove this damaged our credit score, which it did and we proved it. So after a few months going back and forth they sent us a letter with an amount they were going to pay out. We agreed, sent the paperwork back in and waited for a check.
Well, the check came yesterday and it's quite a bit more then we expected. Every letter has stated "calculated" amount, never a set amount.
So, we are going to call and check on this, but are wondering....... Is this just a cruel mistake and we'll have to send this back and wait for another check? Or did they possibly calculate this total and the check is correct? ((((sigh)))) seems to go to be true.
Anyone experience anything like this before?
I would question it. I wouldn't cash it until someone put it in writing that was the correct amount.
Then I would put the funds towards the balance of my mortgage!! :)
since the last settlement amount there could have been additional penalties or fees they needed to include. Do your investigating but also check the date the check needs to be cashed AND DO NOT LET IT PASS. Usually a check is good for a year but sometimes it is 180 or even 90 days.
I would go ahead and deposit the check, but hold the funds. Write a letter to them asking for an itemization/accounting of how the check amount was calculated.
No I haven't been there.
But I do know most companies don't send checks then ask for them back.
Deposit it.
A calculated amount is just an estimate. I suggest the amount you received is correct. It would be extremely rare for the bank to make an error. The amount of the checks was approved by the court.
I would deposit the check into a savings account and not touch it until you have investigated it. Sounds like there were additional penalties and possibly interest added to the settlement account.
I would certainly find out who to question and I would ask for details about the amount. Personally, I would want to see the signed off copy of the paperwork.
Do NOT cash it until you have all of the information because once you sign off on it and cash it, the settlement is over because your signature and cashing the check says you agree to the terms. Hence, that is why you need to see all of the fine print.
Once you get all of the details, talk to your financial advisor or CPA to find out about any fees, taxes, etc that you may owe from this settlement.
THEN, once everything is free and clear for you... pay off your debt, put it in your retirement or college fund accounts.
Best wishes!
Was the bank required to pay penalties for not acting in good faith? Perhaps this is why the check is larger than it seems?? Also, are you going to have to pay taxes on this windfall? Perhaps they were required by the settlement to gross it up to cover taxes? Who is the settlement company that is tasked with the distribution? Call them and find out what is going on with your check. Then once you get your check, pay off any existing debt and put the rest on your mortgage or for retirement or for college funds. Happy Thanksgiving!
You are right to call and question this. If the check is more than you anticipated, then you should figure out why. You would not want them to come back later and expect you to pay the overage back...
If it has to do with interest then that could be why the amount is different, they can only calculate/estimate a certain amount because it differs from day to day. I would cash the check since it will probably be no good after 90 days. You can also call them before the 90 days is up and find out for sure.
If you provided more detail it would be helpful. What's a "bit more"? How long was it between when you sent in the paperwork and when you received the check?
In a class action suit, usually you're given an "estimate". If you were an amount 6 months ago, remember interest will continue to accrue from that point.
I would go ahead and deposit the check. If you believe it's a mistake, then just let the excess funds sit in your account in case an error is discovered and they want you to pay back the overpayment.
I'd go ahead and cash it.
I would deposit it and count your blessings for a bigger check than you expected! You deserve that extra amount anyway after what you were put through!
