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#1870027 - 11/08/13 10:14 PM Endorsement of a check written to the bank
Mike Baker Offline
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Mike Baker
Joined: Dec 2002
Posts: 192
Tennessee
Could someone please explain the logic of this to me?
I present for a deposit a personal check which I have written, drawn on another bank. I have made the check payable to the bank to which I am depositing the check. There are no issues here about suspected NSF, identity theft etc. Nor was the transaction a split transaction in which there would be cash back to me [there is a place on the deposit slip to sign for that case]. In fact this was a $10 check. Why would the teller require me to endorse the back of the check? That just seems wrong to me. It would seem that the endorsement should be that of the bank at which I am making the deposit. If I write a check to say, Bob, then of course I would expect Bob to be the one required to endorse it. Would the same principle not hold true if I write the check to the bank? What is the difference between a check writeen for deposit and a check written for a loan payment, in sofar as required endorsement? Am I missing something or has an erroneous procedure been communicated to our tellers? It is late on a Friday, and I think I need to go home...thank you for your assistance!
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#1870037 - 11/08/13 10:28 PM Re: Endorsement of a check written to the bank Mike Baker
BrianC Offline
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BrianC
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Illinois
InfoVault Q & A

If you want to deposit money to your account, the correct way to do so is to make the check payable to yourself or cash and endorse the back.

If you are making a loan payment/safe deposit box rent payment, etc. then make the check payable to the bank.
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#1870044 - 11/08/13 10:36 PM Re: Endorsement of a check written to the bank Mike Baker
Elwood P. Dowd Offline
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Elwood P. Dowd
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Next to Harvey
Quote:
What is the difference between a check writeen for deposit and a check written for a loan payment, in sofar as required endorsement?


Your teller followed a practice common to many banks. Regardless of whether the individual was cashing the check, using it to purchase an official check, or making a deposit, they require the drawer to sign the back to make it clear that the check was not a payment to the bank. If the monies were actually owed to the bank; e.g. a loan payment, safe deposit rental, etc. hopefully they would not ask you to endorse it.
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#1870051 - 11/08/13 10:46 PM Re: Endorsement of a check written to the bank Mike Baker
BrianC Offline
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BrianC
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Illinois
...and here's the "Why." Corporation sends bookkeeper in with check payable to bank to pay their loans. Bookkeeper deposits chcek into personal account instead. Corporation sues bank for misappropriating the checks. Bank loses.

Rather than distinguish whether its a check from you to yourself, or from a company, the bank isn't going to make the tellers try and figure it out. Instead they want the endorsement of the person/entity who is ultimately receiving benefit from the proceeds of the check.
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#1870193 - 11/12/13 03:35 PM Re: Endorsement of a check written to the bank Mike Baker
Mike Baker Offline
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Mike Baker
Joined: Dec 2002
Posts: 192
Tennessee
Thank you for the responses. In the example cited, while I would certainly hope that the corporation would at least have indicated "loan payment" in the memo section of the check, I am sure that there are some who would not, therefore leaving a door open...

However, in my particular case, a check written on my account, at another bank, signed by me, with a deposit slip filled out by me, and there being no concern about my identity nor whether the check is good...it still seems to go against reason...I feel like I am being asked to endorse on behalf of the bank, whom the check is designated "pay to the order of...'

Oh, well, it may be easier just to have tellers get the signature, regardless, rather than to delve into so many particulars...

Again, I appreciate the responses...I would be curious to know if this seems to be a standard tenet by which most tellers are instructed, or if there is some variance among financial institutions?
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#1870215 - 11/12/13 04:04 PM Re: Endorsement of a check written to the bank Mike Baker
rlcarey Online
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rlcarey
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Galveston, TX
It really comes down to the fact that you made the check payable to the wrong person/entity. Confusion regarding the teller's reactions are really misplaced.
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#1870218 - 11/12/13 04:08 PM Re: Endorsement of a check written to the bank Mike Baker
Elwood P. Dowd Offline
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Elwood P. Dowd
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Next to Harvey
Quote:
I would be curious to know if this seems to be a standard tenet by which most tellers are instructed, or if there is some variance among financial institutions?


There is certainly variation. Requiring the drawer's endorsement when a check is mistakenly made payable to the bank is only really common in the banks where tellers are well trained.
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