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#687007 - 02/14/07 07:32 PM Check Endorsements
Paris Offline
100 Club
Joined: Dec 2005
Posts: 173
Honolulu HI
A customer of ours has made arrangements with the company holding his Annuity to send monthly deposits directly to the bank for processing. Upon receiving these checks we notice that there are endorsement instructions on the back of the check.

Endorsement must be in the payee's handwriting.
By depositing or endorsing this check, the payee
guarantees that the subject person, named on the
front, is living on the due date.

If the maker of the check requires such an endorsement, why would they allow the customer to have the check sent directly to the bank for depositing?

How would we know if the payee is still living on the due date? Would we be liable for the item if we were to process it without the customer’s physical endorsement?

The customer is very upset that we are requiring him to come into one of our branches to endorse the item before depositing it.

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#687078 - 02/14/07 08:52 PM Re: Check Endorsements Paris
#Just Jay Offline
10K Club
#Just Jay
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
The customer must realize that you are only following the instructions on the back of the legal instrument itself, and that the Annuity company has the legal right, no matter what their verbal agreement is, to send back the unsigned check at their discrestion (sp).

I would recommend the customer go back to his agent and work out a new payment arrangement.
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