I gave Home Depot a deposit check for some work to be done. Check never cleared, and then I discover, upon finding my account overdrawn(!), that they charged me - using my check routing information and account number - the entire amount of the project. Never mind that the work hasn’t even been done. From my point of view, they stole over $1300 from my account. Fortunately, the bank made it right when I told them it was an unauthorized debit. Assuming somebody at HD made a BIG mistake, is what they did wire fraud?
IANAL but if you’ve described the entire situation then I’d say yes, Home Depot committed a crime. They can’t use the information on one check you gave them to create new transactions.
However, you should make sure this is the entire situation. Did you ever sign any other agreement with Home Depot? You may have signed something which authorized them to do this in the fine print.
I would have to do research that I’m too lazy to do, but to prove wire fraud, I believe you would have to show that they “knowing and willfully” took your money without permission. Of course, they will say “oopsies.”
But I think you would have a civil action of a breach of contract (provided that the terms were as you say) and whatever other goodies you state consumer protection law allows…IANAL, YMMV.
This is a completely common, normal business process these days.
It’s called ACH Check Conversion. It involves converting a physical check into an electronic transaction processed through the Federal Reserve System’s ACH (Automated Clearing House) process. And it is completely legal under the ‘Check 21’ law, effective October, 2004.
It’s very common – on my last bank statement i had 17 checks processed, and 8 other checks converted to ACH debits.
But your statement “check never cleared” – are you sure? Checks converted to ACH debits should show on your bank statement, and the info should include the original check number. Are you sure you didn’t miss such an entry?
Also, the statement that “the work hasn’t even been done” – that’s a separate problem with them fulfilling the contract. But the accounting department that does the banking just deposits all the payments received by Home Depot that day – they do not hold them until the contracted work is completed. They probably don’t even know that our check was payment for some construction or installation work – just that it was a payment received.
For this problem, you need to deal with the department that is supposed to do the work, and their schediling people. The accounting department doesn’t have any control over that. But if your agreement had a scheduled date that this work was to be completed, and they didn’t make that date, you do have a legitimate complaint, and a cause for legal action.
What the OP is saying was the check was for the deposit (lesser) amount, and the full (greater) amount of the project was withdrawn. They withdrew an amount not written on the check.
A check constitutes written authorization to perform an ACH transaction of the indicated amount. CC is saying the merchant transacted a far larger amount. That is most definitely not allowed, unless there was some additional agreement (aside from the check) permitting them to do direct debits against the account.
Seeking input on specific legal cases is basically seeking advice, and such queries are best suited to IMHO.
Colibri
General Questions Moderator
Nope - I wasn’t seeking advice. I was simply curious and seeking information as to whether anyone knew if the event as described appears to fall under the larger rubric of “wire fraud,” as I’m not sure exactly what that term refers to. If I wanted legal advice, much as I esteem the SDMB, I would ask a lawyer.
I would assume wire fraud requires intent. This could easily be a clerical error.
How? I agree, it theoretically COULD be, but…by what (realistic) process could this happen?
Unless the OP signed a contract authorizing this, it sounds pretty close to being unequivocal theft.
I don’t know what the process for ACH is exactly. If it involves using a computer to file the check with the bank someone could have typed in the total from the contract instead of the down payment. The money was returned and Home Depot didn’t challenge it. The OP suffered no damages. Seems unlikely for a prosecutor to file charges under those circumstances. It;s Home Depot though, wouldn’t surprise me if it’s outright theft.
The fine print may be key. What does it say in regards to this situation?
Also, as the work hasn’t been done, was the work scheduled to be done? What was the schedule? Were all the funds due before the work began? Was a percentage of the funds due before the work began?
I’d suggest that you go back to the original contract, and find out exactly what it said, including the fine print. Note that I’m not saying that you (or HD) are right or wrong; I’m simply saying that the answer to your question may lie somewhere in the original contract.
Just FYI, the contract and the payment summary are clear. The deposit was listed and the remainder is listed as the amount to be paid upon completion of the work, which has not yet been scheduled due to the city’s delays. No fine print authorizing it. Someone screwed up. I’m still trying to track down how it happened, and they haven’t been real helpful yet. The bank, an entity considerably bigger than Home Depot, handled the matter almost immediately and courteously. I’m getting some runaround right now from a district sales manager at Home Depot, however, so they’re just making it worse.