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#2029988 - 07/27/15 08:41 PM 2 party checks
Banker57 Offline
Gold Star
Joined: Jul 2010
Posts: 439
A customer frequently brings in checks made out to another person. This other person then endorses the checks to our customer to cash. We advised the customer this other person should get his own account so he can cash his own checks. Well the application was declined due to previous account abuse. Anyone have advise on the best way to handle this situation? We have been requiring that the checks are deposited and a hold is placed on the funds. However this is getting to be more and more work on our side.

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#2029990 - 07/27/15 08:47 PM Re: 2 party checks Banker57
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Your bank has the option of not accepting for deposit third-party checks like the ones you described. More and more banks have adopted such a policy, and only permit exceptions for businesses that routinely cash checks.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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#2029991 - 07/27/15 08:48 PM Re: 2 party checks Banker57
Cape Codder Offline
Gold Star
Joined: Jul 2011
Posts: 413
Refer non-customer to local grocery/convenience store/check cashing MSB? Sometimes you just have to say no.
Nothing difficult is ever easy.

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