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#2246676 - 12/17/20 05:02 PM Odd loan payments
joeball Offline
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joeball
Joined: May 2004
Posts: 170
Bluegrass State
We have a customer that brings in checks made payable to him from family members and then uses these checks to make loan payments. He does not want to deposit the checks first then make a payment.

My question is, do we have to accept these checks a loan payments or can we require him to deposit them into his account them make the payment?
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#2246679 - 12/17/20 05:06 PM Re: Odd loan payments joeball
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,325
Galveston, TX
What does your loan agreement say about you accepting payments?
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#2246696 - 12/17/20 09:19 PM Re: Odd loan payments joeball
ACBbank Online
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ACBbank
Joined: Jul 2006
Posts: 4,239
New York City
Maybe I'm misunderstanding. What's the difference (Aside from processing) in terms of how the payments are being made?
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#2246702 - 12/17/20 10:48 PM Re: Odd loan payments joeball
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,325
Galveston, TX
Well, you could have a strawman situation, they could be laundering money, etc. Some loan contracts with stipulate payments that are acceptable. I would say unless you loan contract says you will accept third party checks, you are under no obligation to apply them to the loan,
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