Hello!

I recently joined a small institution. Today I found out that when opening a new deposit account for an existing customer, that they are not doing a new signature card - but amending the old card to include the new account number.

So clearly there are some very serious potential legal issues (is the new account a valid agreement, etc.) but what other major issues would this cause? Has anyone ever heard of this?? I have not...

I presume updated account agreement and sickosures are mailed out but have not yet confirmed.

Any help or guidance would be very much appreciated.

Thanks!!

"So clearly there are some very serious potential legal issues"

Yup - and therefor you need to be talking to legal counsel. Without of review of the signature card and agreements, we are as in the dark as you are.

Thanks Randy - going to be talking to them tomorrow - I’ll find out more then.

Have you (or anyone else) ever heard of this?

Depending on the strength of the records, it could adversely impact FDIC insurance coverage.

Also as an off topic aside, when posting a question, a descriptive topic title will help others searching the forums find topics to answer similar questions.

One other thing, is that signatures change over a period of time. If the signature card is the ultimate record for comparisons for authority to withdraw, there may be a doubt if the same signature card is used over decades.

Sadly, yes...and other similar atrocities.