5 ms·

Citibank has agreed to be the paying agent for the borrower. Literally every other payment received from the borrower came from citibank. Those checks can and s

Citibank has agreed to be the paying agent for the borrower. Literally every other payment received from the borrower came from citibank. Those checks can and should be cashed. Similarly, the company servicing your mortgage may not own it. Doesn't matter, if you pay to them they need to reduce the mortgage balance (even though you didn't owe them specifically the money) and then carry out their responsibilities with lender.

stingraycharles 6y ago
That’s a technicality. In the case of a loan payment, it isn’t Citibank’s money they are wiring, so you cannot just say “this was a loan payment, it’s just they keep it”. Of course it’s acceptable that this caused confusion with the receiving party, but it does not mean they can keep it. It’s not the money from the party that was supposed to pay back the loan.
- IncRnd 6y ago
  Citibank literally did make a loan payment - of the exact amount due in principal plus interest. That means that Citibank calculated the amount due, and sent the payment.
  - stingraycharles 6y ago
    It can mean a computer calculated that (like some dashboard with multiple buttons and one that says “pay everything” which was accidentally pressed) and it did not take any conscious action for that to happen, so that doesn’t say anything about intent.
    - IncRnd 6y ago
      This isn't going to be decided on some theoretical dashboard with a "pay everything" button but on something more concrete.
- donor20 6y ago
  Please cite a law here. The money was owed, it may have been distressed and in default (so due immediately) the balance was paid. Seriously, no lender is responsible for investigating at the level you are talking about - seriously, they do not need to figure out if you used your own money, the paying agent used their money, a title company paid out a title claim and used their money, an insurance company settled the debt as a result of a loss event etc. Paying agents in other areas (securities / bonds) pay trillions a year - the system would not work if everyone was always having to worry that the "good funds" being used to pay debts were not good funds.
kbenson 6y ago
I would think facilitating payment would only leave you liable for the amount given to you to transfer, not the amount of your assets that total the amount of debt between the parties you are facilitating for. If Alice owes Bob $500, and I've agreed to take Alice's $5 bill to Bob, and I accidentally give Bob my own $500 bill, Bob doesn't get to keep it. The liability I took on in that transaction is for the amount of money I accepted from Alice for the purpose of delivering to Bob, not Alice's total debt.
ViViDboarder 6y ago
That doesn’t seem relevant to me. If you and I both have accounts at a particular bank and they draw from yours instead of mine, generally I’d expect the bank to take the money from me and give it to you to right the situation. However, are you just SOL if I don’t have the cash to make you whole again? Just because we both use the same bank?

stingraycharles 6y ago

That’s a technicality. In the case of a loan payment, it isn’t Citibank’s money they are wiring, so you cannot just say “this was a loan payment, it’s just they keep it”. Of course it’s acceptable that this caused confusion with the receiving party, but it does not mean they can keep it. It’s not the money from the party that was supposed to pay back the loan.

IncRnd 6y ago
Citibank literally did make a loan payment - of the exact amount due in principal plus interest. That means that Citibank calculated the amount due, and sent the payment.
- stingraycharles 6y ago
  It can mean a computer calculated that (like some dashboard with multiple buttons and one that says “pay everything” which was accidentally pressed) and it did not take any conscious action for that to happen, so that doesn’t say anything about intent.
  - IncRnd 6y ago
    This isn't going to be decided on some theoretical dashboard with a "pay everything" button but on something more concrete.
donor20 6y ago
Please cite a law here. The money was owed, it may have been distressed and in default (so due immediately) the balance was paid. Seriously, no lender is responsible for investigating at the level you are talking about - seriously, they do not need to figure out if you used your own money, the paying agent used their money, a title company paid out a title claim and used their money, an insurance company settled the debt as a result of a loss event etc. Paying agents in other areas (securities / bonds) pay trillions a year - the system would not work if everyone was always having to worry that the "good funds" being used to pay debts were not good funds.

kbenson 6y ago

I would think facilitating payment would only leave you liable for the amount given to you to transfer, not the amount of your assets that total the amount of debt between the parties you are facilitating for. If Alice owes Bob $500, and I've agreed to take Alice's $5 bill to Bob, and I accidentally give Bob my own $500 bill, Bob doesn't get to keep it. The liability I took on in that transaction is for the amount of money I accepted from Alice for the purpose of delivering to Bob, not Alice's total debt.

ViViDboarder 6y ago

That doesn’t seem relevant to me. If you and I both have accounts at a particular bank and they draw from yours instead of mine, generally I’d expect the bank to take the money from me and give it to you to right the situation. However, are you just SOL if I don’t have the cash to make you whole again? Just because we both use the same bank?