GCS Federal Credit Union

GCS Federal Credit Union has filed suit against one of its account holders, alleging he owes them $14,049.50 after a check he deposited was returned after he withdrew the funds.

According to GCS, on June, 12, 2006, William Chandler tendered a check payable to and endorsed by Helen Chandler, William's mother, for deposit in his account.

The bank claims after the deposit was made, Chandler withdrew the funds that were represented by the check.

According to GCS, the check endorsed by his mother was returned by the maker, State Farm, as an incomplete endorsed check which resulted in an overdraft of his account of $14,049.50.

GCS claims pursuant to the terms and conditions of Chandler's checking account, the account holder is responsible for checks that are deposited and then returned.

In addition, the account holder is responsible for reasonable attorney's fees and court costs in the event that a suit is filed to collect any indebtedness.

"That despite Plaintiff's demands, Defendant has failed and refused to pay Plaintiff the sums due it as a result of the overdrawn funds from the account," the complaint states.

"Defendant breached the account agreement by failing to repay Plaintiff on amounts of money to cover withdraws made from the account," the complaint also states.

GCS is seeking a judgment of $14,049.50, plus costs and $600 for attorney's fees.

The case is awaiting mandatory arbitration.

08 AR 523

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