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.

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.

Refer non-customer to local grocery/convenience store/check cashing MSB? Sometimes you just have to say no.