04/21/2019
A check is payable to 4 people, 2 of the payees are our bank customers and have endorsed the back of the check. The other 2 payees came into our branch, signed and cashed the check. If by some chance this check is returned to our bank, who would be liable? We understood that it is always the last signer and the person who received the cash. Is this true?
02/10/2019
An item was presented for cash at the bank. The handwriting and signature matched our customer's previous checks and signature card. However, the customer is now stating that they did not process this item and it is a forgery. What due diligence does the bank have to follow since we believe this is NOT a forgery but our customer trying to gain funds. The customer has completed and signed an affidavit of forgery. Does the bank have an obligation to give credit back to the customer without an investigation or police report filed? At what point is our customer liable?
01/27/2019
A longtime customer came into the Bank and presented the teller with a check. The teller asked the customer about the check and she stated that she had received the check in the mail as part of her winning the Publisher's Clearing House. The letter instructed her to cash the check and submit a portion of the funds back to them while they finalized the issuance of the "large" winning check. This sounded strange to the teller who called a supervisor and through research found the check to be fraudulent. The supervisor retained the fraudulent check refusing to return it to the customer (fearing she would take it to another bank).
Does the bank have the right to retain the fraudulent check or should it have been returned to the customer, or should the check be destroyed and documented that such action was taken?
01/20/2019
We have a customer that transfers money from his operating account to his tax account each month. His accountant has asked him to do this in check form for tracking. When he writes the check he puts his account number as the "Pay to the Order of" line. Is this acceptable?
10/14/2018
Should a bank cash a check made payable to a corporation or any business?
07/01/2018
If a commercial customer has an account with our bank, and he pays his employee who has a charged off account with us and owes us money, are we bound to cash the check for the party who owes us money, and not have him pay us what he owes us?
04/29/2018
Bank A issues a cashier's check for $25,000 payable to Smith Jones Construction. Bank B accepts the check for photo deposit into Mr. Jones' personal, private account indorsed with only his single signature. The cashier's check is never endorsed in the name of the payee company. Bank A then accepts the check from Bank B. Mr. Jones quickly withdraws the money from Bank B and misappropriates the funds. The business itself never gets paid. If it matters, this is in Ohio.
What banking errors were made here and by whom? The business is asking for recourse.
01/07/2018
If grantors of a trust are deceased, can the trustee's leave the SSN of the grantor as the tax ID for the account and can they make deposit into the account not payable to the trust specifically?
11/26/2017
If we have a customer that recently purchased a business. He wants to deposit a check made payable to the business but is also payable to the former owner. Should we just have them request a new check be issued to only the business or, based on paperwork provided can we confirm the current customer has rights to anything made payable to the business going forward regardless of the additional reference to prior owners?
10/29/2017
How long should a bank continue to pay valid checks on an old account that was closed due to fraud from the new account opened by the customer?
