News

ATM vault cash provider files suit against armored carrier

January 2, 2003

AMARILLO, Texas -- Herring National Bank, based in Amarillo, filed suit on Dec. 31 against Dallas-based armored car company Mobile Express Corp., claiming the firm failed to return more than $2 million in cash recovered from ATMs, according to a report in the Amarillo Globe-News.

According to the suit, Herring, a vault cash provider for ATMs owned by third parties, contracted with Mobile Express to provide armored car services and stock the machines with cash. Under the contract, residual cash remaining in the ATMs was supposed to be returned to Herring.

The suit claims Herring recently became aware that the armored car company was not returning cash from ATMs on a consistent and timely basis. On Nov. 17, Herring prepared a reconciliation of amounts Mobile Express owed to Herring because of the bank's concerns about missing ATM cash.

According to the Globe-News report, the reconciliation determined Mobile Express failed to return large sums of Herring's cash that was removed from ATMs. After Herring made repeated attempts to collect the money from Mobile Express, the bank on Dec. 30 made a formal request for Mobile Express to return about $1.8 million in cash.

"Despite MEC's acknowledgment that residual cash is unaccounted for, MEC failed and refused, and has continued to fail and refuse, to return the cash due and owing Herring," the suit states.

The suit claims Herring provided Mobile Express with more than $2 million in cash that was not returned. The bank is seeking damages, court costs and attorney fees in its suit.

According to its report, the Globe-News attempted to contact officials from Mobile Express for comment, but the company's telephone had been disconnected.