Posted By: TeamOps
Large Endorsements Verification - 06/22/22 09:42 PM
Hi,
Question: We are deciding whether or not we should discontinue the endorsement review because the Bank (we) are not the first bank of deposit and the items have already cleared our customers' accounts. Currently, if we notice that the endorsement does not match the payee or has a guaranteed stamp, we contact branch personnel to ask if they would like to pay or return for proper endorsement. The branch then attempts to contact the customer for verification. If the branch cannot contact the customer, the branch decides if they would like to pay or return it. If they do return the check, operations creates a manual return (which kicks the check back to the 1st bank for the correct endorsement) and makes entries to credit the customer.
We are wondering if we keep in place the checking our customers signatures, encoding errors and stale date if we can stop checking the endorsements since we are not the first bank of deposit and the items have already cleared our customers accounts?
Can anyone provide some guidance on the necessity of this procedure and pros/cons of discontinuing it?
Question: We are deciding whether or not we should discontinue the endorsement review because the Bank (we) are not the first bank of deposit and the items have already cleared our customers' accounts. Currently, if we notice that the endorsement does not match the payee or has a guaranteed stamp, we contact branch personnel to ask if they would like to pay or return for proper endorsement. The branch then attempts to contact the customer for verification. If the branch cannot contact the customer, the branch decides if they would like to pay or return it. If they do return the check, operations creates a manual return (which kicks the check back to the 1st bank for the correct endorsement) and makes entries to credit the customer.
We are wondering if we keep in place the checking our customers signatures, encoding errors and stale date if we can stop checking the endorsements since we are not the first bank of deposit and the items have already cleared our customers accounts?
Can anyone provide some guidance on the necessity of this procedure and pros/cons of discontinuing it?