Two checks for $20,000.00 were deposited to a relative's account without endorsement of the payee. The money from the deposit was diverted to a mutual fund by the person who made the original deposit. If we go back to the issuing bank and sign an affidavit of forgery, will the bank that took the checks for deposit try to recover from all persons named on the account? Are all account holders liable for the actions of one of the account holders? This is a very sticky family situation.
We have a customer who sent a check for payment to a specific company. Company says they did not receive check, however, we found that check had been paid and endorsed by someone else not related to the payee company. Endorsement is not as drawn and not a forged endorsement. What course of action do we take for the customer?
What are the risks to financial institutions if the merchant doesn't obtain proper endorsement or follow appropriate endorsement standards?
My customer says that a check she wrote to her daughter was never received, however, the check has cleared the customer’s account and she states her daughter’s signature has been forged. I know the BOFD warrants the endorsement, but what action must be taken to recover the loss? Does the paying bank need to have an affidavit of forgery of the endorser? Please advise.
When a business uses a stamp to endorse their checks, what is the requirement for verbiage on the endorsement? Should it include the bank of first deposit ABA number in addition to the business account number?
Our customer deposited a check last July that was made payable to someone else. The check was endorsed by the payee and then endorsed by our customer and now the payee is claiming that the endorsement was forged. Are we liable for this since it was a third party item? Naturally, our customer's account is now closed.
My understanding is that the USA PATRIOT Act forbids the negotiation of government checks by anyone other than the payee or payees. Do you know where I can find this in print as I have an irate customer that wants me to "prove it" when I told him I was unable to accept a government check made payable to someone else because of the second endorsement required.
We have a customer who wrote a check to a business to pay a bill. The check was cashed and he has the returned check. The following month, he got another bill saying that it had never been paid. Come to find out, a person at the business had stolen the checks from the company and deposited them into another account at another bank. We are not sure if the suspect opened the account at another bank in her own name, or if it was in the business's name with their Tax ID and information, as she would have had access to that information as well. Either way, who would be responsible for the loss? I am under the impression that it would fall back onto the business or the other bank, as they do have due diligence to verify and know who they are opening an account for, am I correct?
Can the account example below be opened if titled like this? It would be under John's social security number:John Doe DBA John's Cleaning DBA Jane's Closet