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Can I sue my bank for loaning money to my son, secured by my CD, if it was done without my permission?

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My youngest son (47 yrs old) secured a loan at my credit union for $10,000 using my $36,000 CD as collateral, without my knowledge or consent. My number 3 son is a joint owner of that CD and he did not know about this either. Son #4 has since paid off four credit cards using this loan, raising the total debt to $28,000, all without my knowledge or approval. I should have been informed when he first applied for the loan and each time he increased it since the loan is secured by my CD. He is now having great difficulty making ends meet and may file bankruptcy. Do I have any legal recourse with the bank for basically lending my money to my son without my permission? Can I sue them and make them absorb the $28,000 debt? I am 76 years old and can not afford to lose this money.

Attorney Answers

2
Dorothy Bunce ·
If your bank secured a loan against a CD that was yours alone, for a debt by someone who is not on the account, it sounds like you have a good potential lawsuit against them. But banks don't usually make mistakes this bad, cause if they did, they would be out of business even faster than they already are! So look into the facts first, get the relevant documents from the bank, and then take it to a litigation attorney. Hope this perspective helps!
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