Is This Legal???? - Tilted Forum Project Discussion Community

scoobydugan · 09-06-2003, 06:53 PM

Hey guys....about a month ago I received a $1,500 scholarship from a local organization....I had them transfer the money into 2 seperate accounts(the treasurer works in a local bank so i opened 2 accounts with them)....1000 into checking so it's readily available...and 500 into savings....turns out the day after the transfer my car broke down....so i used the 1000 to get it fixed....now they aren't letting me withdraw MY other 500 from my savings because they found out that I didn't use the 1000 for school!!! Can they do this???? It's my money now, it's in my account....how can they hold me away from it?

Buk · 09-06-2003, 06:59 PM

Umm, well I don't know about the bank not letting you take out the $500 but you are in deep crap with the organisation that gave you the scholarship when they ask you to send them the grades and they call your school for a receipt on your tuition payment.

Uh, good luck.

tinfoil · 09-06-2003, 07:09 PM

Did you sign anything when you received the cash?

scoobydugan · 09-06-2003, 07:12 PM

They knew it wasn't going for tuition...that's already covered from my fafsa and tap...I only signed stuff for the account....I guess if I really wanted I could take it to court...it is my money afterall

SecretMethod70 · 09-06-2003, 07:15 PM

check the rules of the scholarship contest. They probably say something about how it must be used for school.

Good luck with it.

scoobydugan · 09-06-2003, 07:18 PM

All they said was to submit the paperwork saying I was a full-time student and that they would send the check to the school for tuition....I told them my tuition was taken care of and they placed it in those accounts for me....

oberon · 09-06-2003, 08:17 PM

Umm, money is money. If you use $1000 from a scholarship to pay for school, you have $1000 for something else. If you pay $1000 for school, you get the scholarship money for something else.

What's the difference? Or did scoobydugan get complete coverage from fafsa and other external sources that aren't personal? I guess it depends on what the rules for your scholarship are.

vermin · 09-06-2003, 08:24 PM

Dude, you are so fucked. How far away from either the Canadian or Mexican border are you?

skysooner · 09-06-2003, 08:42 PM

You just need to look at the scholarship rules as was mentioned previously. I won a $5,000 scholarship in graduate school when my school, books, tuition, and housing were basically paid for from other scholarships. I bought stock in Wendy's with the money. There was no limitation on what it could be used for though. They might be concerned at their possible tax liability since by giving it as a scholarship, it is generally tax-free to them. By you using that particular money for something else, they may feel it jeopardizes them in that way. All you can do is ask.

MSD · 09-07-2003, 06:49 AM

Do you use the car to get to, or get around at, school? It's school related.

Silvy · 09-07-2003, 06:58 AM

IANAL, but I don't think this is legal.

The accounts are yours right? So the money in them is yours. The bank should at any and all times give you access to your money. (In extreme cases they should be given some time to accomodate especially if it is a large sum, which is not the case here).

On the other hand, you might be in trouble with the organization that gave you the money. You may have to return it to them or something.
They could in theory block your accounts if they have reason to fear you're not going to repay them (court order necessary?).

But If they do not repossess your accounts then the bank should allow the only rightful owner (that's you btw) access to the money. I think this is a case where a bank employee has crossed the line between business and personal. Take it to their management claiming they are not giving you your money, and threaten with a lawyer.

The bank should be a totally seperate entity here which should not interfere with your private realtionships unless officially asked by either you or the other organization.

Cynthetiq · 09-07-2003, 07:06 AM

its a scholarship not a grant or bursary. rules apply to scholarships, grants are given money without rules. dunno about bursaries.

legolas · 09-07-2003, 11:40 AM

There must be something in the rules or it's complete bs. Go online and read the rules or something.

i_t_man · 09-07-2003, 12:39 PM

Quote:

Originally posted by Silvy
IANAL, but I don't think this is legal.

The accounts are yours right? So the money in them is yours. The bank should at any and all times give you access to your money. (In extreme cases they should be given some time to accomodate especially if it is a large sum, which is not the case here).

On the other hand, you might be in trouble with the organization that gave you the money. You may have to return it to them or something.
They could in theory block your accounts if they have reason to fear you're not going to repay them (court order necessary?).

But If they do not repossess your accounts then the bank should allow the only rightful owner (that's you btw) access to the money. I think this is a case where a bank employee has crossed the line between business and personal. Take it to their management claiming they are not giving you your money, and threaten with a lawyer.

The bank should be a totally seperate entity here which should not interfere with your private realtionships unless officially asked by either you or the other organization.

I think the only way they could have legally done this is if the Bank deposited the funds into your account before the check actually cleared, then the scholarship company stopped payment on the check. Otherwise I don't think it's legal to put a hold on someone's account without a court order.

Silvy · 09-07-2003, 12:44 PM

Quote:

Originally posted by i_t_man
I think the only way they could have legally done this is if the Bank deposited the funds into your account before the check actually cleared, then the scholarship company stopped payment on the check. Otherwise I don't think it's legal to put a hold on someone's account without a court order.

That's exactly what I suggested, next to the fact that some employee has got a conflict of interests here. If the bank does not have a legal/official obligation to block your account then that employee should start looking for a new job.

Btw: there are other reasons a bank can block someone's account, but a request from some employee or random organization is not enough.

My advice: contact a lawyer to make sure, and then send a letter to the management of the bank.

scoobydugan · 09-07-2003, 05:14 PM

Thanks guys....Tomorrow morning I am going to the bank...hopefully the lady is there....I will explain the situation to her once again and hopefully I will receive my money...If not I will threaten with a lawyer.....I got a certificate with the scholarship...no rules....just something saying that I was awarded $1,500....

H12 · 09-07-2003, 08:51 PM

Lawyer for sure. I'd despise somone who had control of my money and refused to give it to me when I asked for it. I don't know about the scholarship thing though...you'd probably need to look into that a lil' bit more, but you gotta get your money back somehow.

BonesCPA · 09-08-2003, 11:12 AM

If you can't get the money fromt the bank after discussing it with them - have them issue a check to the school. Send it to them to put on your account. Since it will be an overpayment, contact them in a few weeks and ask if you have any excess payments, and request a refund - and take it to a new bank. The process may take a month or so, but at least you will be away from the bad bank and potentially saving money on an attorney.

GakFace · 09-08-2003, 11:34 AM

Quote:

Originally posted by scoobydugan
They knew it wasn't going for tuition...that's already covered from my fafsa and tap...I only signed stuff for the account....I guess if I really wanted I could take it to court...it is my money afterall

question: With FAFSA.. how much of that was loans?

scoobydugan · 09-08-2003, 02:29 PM

none....all grants

GakFace · 09-08-2003, 03:51 PM

oh.... damn, thats nice.. Seeing how thats the case, I'm curious about it to. Everything was covered, and they gave you the money. NOW I see your problem

Slims · 09-08-2003, 08:18 PM

Many scholarships/aid programs have specific stipulations that say the money must not be spent on a car. Even my living expense money can't be spent on car-related expenses (except maybe gas).

But if whoever gave you the scholarship thinks you broke the rules, they have to take you to court, and a bank can't freeze your account without a courts permission.

I would call the police and report the money as stolen, since a bank has to give you access to your money.

MacGnG · 09-08-2003, 10:18 PM

if u explained to them in a formal letter they would probly understand that you have to have your car to get to school. but there are all kindsa restrictions on stuff like that...

09-06-2003, 06:53 PM	#1 (permalink)
scoobydugan Crazy	Is This Legal???? Hey guys....about a month ago I received a $1,500 scholarship from a local organization....I had them transfer the money into 2 seperate accounts(the treasurer works in a local bank so i opened 2 accounts with them)....1000 into checking so it's readily available...and 500 into savings....turns out the day after the transfer my car broke down....so i used the 1000 to get it fixed....now they aren't letting me withdraw MY other 500 from my savings because they found out that I didn't use the 1000 for school!!! Can they do this???? It's my money now, it's in my account....how can they hold me away from it?

09-06-2003, 07:09 PM	#3 (permalink)
tinfoil Fucking Hostile Location: Springford, ON, Canada	Did you sign anything when you received the cash? __________________ Get off your fuckin cross. We need the fuckin space to nail the next fool martyr.

09-06-2003, 07:15 PM	#5 (permalink)
SecretMethod70 Human Administrator Location: Chicago	check the rules of the scholarship contest. They probably say something about how it must be used for school. Good luck with it. __________________ Le temps détruit tout "Musicians are the carriers and communicators of spirit in the most immediate sense." - Kurt Elling

09-06-2003, 08:17 PM	#7 (permalink)
oberon Quadrature Amplitude Modulator Location: Denver	Umm, money is money. If you use $1000 from a scholarship to pay for school, you have $1000 for something else. If you pay $1000 for school, you get the scholarship money for something else. What's the difference? Or did scoobydugan get complete coverage from fafsa and other external sources that aren't personal? I guess it depends on what the rules for your scholarship are. __________________ "There are finer fish in the sea than have ever been caught." -- Irish proverb

09-06-2003, 08:24 PM	#8 (permalink)
vermin Indifferent to anti-matter Location: Tucson, AZ	Dude, you are so fucked. How far away from either the Canadian or Mexican border are you? __________________ If puns were sausages, this would be the wurst.

09-06-2003, 06:59 PM	#2 (permalink)
Buk Addict Location: Seattle, WA	Umm, well I don't know about the bank not letting you take out the $500 but you are in deep crap with the organisation that gave you the scholarship when they ask you to send them the grades and they call your school for a receipt on your tuition payment. Uh, good luck.

09-06-2003, 07:12 PM	#4 (permalink)
scoobydugan Crazy	They knew it wasn't going for tuition...that's already covered from my fafsa and tap...I only signed stuff for the account....I guess if I really wanted I could take it to court...it is my money afterall

09-06-2003, 07:18 PM	#6 (permalink)
scoobydugan Crazy	All they said was to submit the paperwork saying I was a full-time student and that they would send the check to the school for tuition....I told them my tuition was taken care of and they placed it in those accounts for me....

09-06-2003, 08:42 PM	#9 (permalink)
skysooner Registered User Location: Oklahoma	You just need to look at the scholarship rules as was mentioned previously. I won a $5,000 scholarship in graduate school when my school, books, tuition, and housing were basically paid for from other scholarships. I bought stock in Wendy's with the money. There was no limitation on what it could be used for though. They might be concerned at their possible tax liability since by giving it as a scholarship, it is generally tax-free to them. By you using that particular money for something else, they may feel it jeopardizes them in that way. All you can do is ask.

09-07-2003, 06:49 AM	#10 (permalink)
MSD The sky calls to us ... Super Moderator Location: CT	Do you use the car to get to, or get around at, school? It's school related.

09-07-2003, 06:58 AM	#11 (permalink)
Silvy paranoid Location: The Netherlands	IANAL, but I don't think this is legal. The accounts are yours right? So the money in them is yours. The bank should at any and all times give you access to your money. (In extreme cases they should be given some time to accomodate especially if it is a large sum, which is not the case here). On the other hand, you might be in trouble with the organization that gave you the money. You may have to return it to them or something. They could in theory block your accounts if they have reason to fear you're not going to repay them (court order necessary?). But If they do not repossess your accounts then the bank should allow the only rightful owner (that's you btw) access to the money. I think this is a case where a bank employee has crossed the line between business and personal. Take it to their management claiming they are not giving you your money, and threaten with a lawyer. The bank should be a totally seperate entity here which should not interfere with your private realtionships unless officially asked by either you or the other organization. __________________ "Do not kill. Do not rape. Do not steal. These are principles which every man of every faith can embrace. " - Murphy MacManus (Boondock Saints)

09-07-2003, 07:06 AM	#12 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	its a scholarship not a grant or bursary. rules apply to scholarships, grants are given money without rules. dunno about bursaries. __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

09-07-2003, 11:40 AM	#13 (permalink)
legolas shit faced cockmaster Location: CT	There must be something in the rules or it's complete bs. Go online and read the rules or something. __________________ "To alcohol! The cause of, and solution to, all of life's problems."

09-07-2003, 05:14 PM	#16 (permalink)
scoobydugan Crazy	Thanks guys....Tomorrow morning I am going to the bank...hopefully the lady is there....I will explain the situation to her once again and hopefully I will receive my money...If not I will threaten with a lawyer.....I got a certificate with the scholarship...no rules....just something saying that I was awarded $1,500....

09-07-2003, 08:51 PM	#17 (permalink)
H12 I'm not about getting creamed, I'm about winning! Location: K-Town, TN	Lawyer for sure. I'd despise somone who had control of my money and refused to give it to me when I asked for it. I don't know about the scholarship thing though...you'd probably need to look into that a lil' bit more, but you gotta get your money back somehow. __________________ "We are what we repeatedly do. Excellence, therefore, is not an act, but a habit." --Aristotle

09-08-2003, 11:12 AM	#18 (permalink)
BonesCPA No. It's not done yet. Location: sorta kinda phila	If you can't get the money fromt the bank after discussing it with them - have them issue a check to the school. Send it to them to put on your account. Since it will be an overpayment, contact them in a few weeks and ask if you have any excess payments, and request a refund - and take it to a new bank. The process may take a month or so, but at least you will be away from the bad bank and potentially saving money on an attorney. __________________ Back into hibernation.

09-08-2003, 02:29 PM	#20 (permalink)
scoobydugan Crazy	none....all grants

09-08-2003, 03:51 PM	#21 (permalink)
GakFace Go Ninja, Go Ninja Go!! Location: IN, USA	oh.... damn, thats nice.. Seeing how thats the case, I'm curious about it to. Everything was covered, and they gave you the money. NOW I see your problem __________________ RoboBlaster: Welcome to the club! Not that I'm in the club. And there really isn'a a club in the first place. But if there was a club and if I was in it, I would definitely welcome you to it.

09-08-2003, 08:18 PM	#22 (permalink)
Slims Eccentric insomniac Location: North Carolina	Many scholarships/aid programs have specific stipulations that say the money must not be spent on a car. Even my living expense money can't be spent on car-related expenses (except maybe gas). But if whoever gave you the scholarship thinks you broke the rules, they have to take you to court, and a bank can't freeze your account without a courts permission. I would call the police and report the money as stolen, since a bank has to give you access to your money. __________________ "Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery." - Winston Churchill "All men dream: but not equally. Those who dream by night in the dusty recesses of their minds wake in the day to find that it was vanity: but the dreamers of the day are dangerous men, for they may act out their dream with open eyes, to make it possible." Seven Pillars of Wisdom, T.E. Lawrence

09-08-2003, 10:18 PM	#23 (permalink)
MacGnG Know Where!	if u explained to them in a formal letter they would probly understand that you have to have your car to get to school. but there are all kindsa restrictions on stuff like that...