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Old 07-01-2010, 05:09 PM
 
416 posts, read 519,913 times
Reputation: 300
Default Bank of America - Third Party Checks

Has anyone every had a problem with Bank of America depositing a third party check? Recently, a friend who owes me money signed over a check made payable to him over to me. He endorsed it properly ("Pay to the order of John Doe, signed Jack Doe). I figured we were good to go, but when I got to Bank of America, they refused to deposit the check, saying that they had to way of knowing if the original check payee really wants me to deposit the check or not. The check was only for $382, and this whole situation has left a bad taste in my mouth.

1) First, haven't third party checks been around since the dawn of banking? While I have never dealt with one before, I remember my parents depositing third party checks quite often and never having any sort of problems. Have laws changed?

2) If the bank is worried about the check being good, why can't they just put a hold on the check balance till it clears? That way the bank does not bear any risk.

3) Every time I go to BofA, the teller tries to push me into opening a credit card that I have supposedly been pre-approved for (I always turn them down because I don't need more credit). However, I think it's comical that BofA will trust me with a $6000 credit card balance, but doesn't see fit that my banking relationship yields me trustworthy of depositing a $382 check from a third party. Surely a 20 year, totally-unblemished banking relationship should mean some level of trust? If BofA wants me to trust them with my money, surely I deserve some reciprocal trust and respect.

Has anyone else had this problem? Is this scenario common in today's banking world. Just for kicks, I called two local community banks in my area and they said that such a transaction was not a problem.
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Old 07-01-2010, 05:51 PM
 
Location: Oakland CA
7,370 posts, read 10,077,296 times
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Back when I was in banking, a person that brought a third party check was always suspect. We'd only do it for really really good customers. We had a bar that did it a lot, and his third party checks were in the neighborhood of 50 bucks, and he had a standing 100K balance in his business account, and around another 100K in personal accounts and various loan products. He wasn't going anywhere....

A check John Smith wrote to Bill Miller who signs it over to you -- we have no way of identifying John Smith's signature, we have no way of identifying Bill Miller's signature, and a check that is fraudulent has 30 days + end of the John Smith's statement cycle for John to tell his bank that this check wasn't written by him.... and you aren't going to want your bank to hold funds for around 60 days. And they aren't allowed to anymore.

They MIGHT do it if you have lots of money and the check isn't lots of money, so if it comes back they have money to cover it. And yes -- times have changed. There is a LOT of fraud out there, and third party checks have a higher tendency to be bad.

And banks right now are trying to cross sell products EVERY TIME you walk in. The tellers have sales quotas they need to meet, so every time you walk in, the teller will hit you up for a credit card. It's not personal. Banks right now feel the more products you have with them, the more roped in you are. It's one thing to close a checking account, but it's far more complicated to close a checking, and a savings account, a CD, car loan, home loan.....

The only way you can get around this is to use an ATM... or bank by mail. I LOVE bank by mail....
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Old 07-01-2010, 09:33 PM
 
Location: Spokane via Sydney,Australia
6,608 posts, read 6,734,333 times
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When I arrived in the USA nearly 10 years ago I was quite surprised that banks here would accept 3rd party checks (it's unknown in Australia, cheques must be deposited to the payee's account, or can only be cashed at the payor's actual bank), but I have noticed over the last couple of years that the major banks (like USBank and BoA) are no longer accepting them.

It's about time as well, I'm sure it cuts down on a whole lot of fraud.
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Old 07-02-2010, 10:49 AM
 
41,633 posts, read 44,854,191 times
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Likely your lookig at a general policy that woulkd take a supervisoor to overule.That would take your havig substantial accounts that can be drafted on incase of it boucing and a fee if it does. that is why I never take thrid party chacks as I don't want to sign as first in line for the bounce.The eaiest way to check is present the check to the bank drawn on .you'll know quickly.
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Old 07-02-2010, 11:26 AM
 
Location: Oakland CA
7,370 posts, read 10,077,296 times
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Quote:
Originally Posted by texdav View Post
Likely your lookig at a general policy that woulkd take a supervisoor to overule.That would take your havig substantial accounts that can be drafted on incase of it boucing and a fee if it does. that is why I never take thrid party chacks as I don't want to sign as first in line for the bounce.The eaiest way to check is present the check to the bank drawn on .you'll know quickly.
The only way that will work is if both the parties show up to the check writers bank. It's still the same thing -- one of those signatures might be forged and the bank won't touch it.
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Old 07-02-2010, 12:36 PM
 
508 posts, read 839,536 times
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That's right. Doing it in person ensures the transaction will actually take place properly. My mother used to do it for me at USBank, and my dad at Bank of America. We did it where the tellers knew my mother and father very well.
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Old 07-03-2010, 02:01 AM
 
328 posts, read 492,636 times
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Tell the bank you will report the bank to the state banking commission for violating UCC code. There are endorsement laws for a reason, and the bank is breaking them by not accepting your properly endorsed check for deposit.

That will wake them up. Of course you probably have to get a manager as I am sure the average teller doesn't even know what UCC stands for.
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Old 03-25-2013, 03:47 PM
 
1 posts, read 50,796 times
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Default Have another situation:

ok say you receive from a family member, a state tax refund check, that they sign and sign over to you and you add your signature. What law states that the bank can take it from your atm deposit, from your checking account? Apparently unbeknownst to me, the family member had an account with the same bank 10 years earlier that they overdrawn, being irresponsible teenager and now the bank decides ten years later that this same person is a match and take the funds right out of the parents account and no the parent had no inclination, nor any attachment to this teenagers account. I can't get the bank to tell me anything that I need to speak with the person who's account is overdrawn? OK call me stupid, but first I know now that I will cash the checks at other institutions before depositing into my account, but how was I to know that this family member had an account with the same institution, let alone there have been numerous times they could have taken any check over the years and haven't till now. What laws have changed and where is it written that they can do that?
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Old 03-25-2013, 03:55 PM
 
10,426 posts, read 8,444,336 times
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Quote:
Originally Posted by 19kuuipo61 View Post
...how was I to know that this family member had an account with the same institution, let alone there have been numerous times they could have taken any check over the years and haven't till now. What laws have changed and where is it written that they can do that?

Sounds like you're mad at the wrong party. Instead of blaming the bank, you should blame the irresponsible family member who stiffed the bank years ago.
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Old 03-26-2013, 04:15 AM
bUU
 
5,970 posts, read 2,263,504 times
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Quote:
Originally Posted by ave1024 View Post
Tell the bank you will report the bank to the state banking commission for violating UCC code.
The UCC does not require acceptance of third party checks. The UCC provides limitations on the indorsement but not requirements on the banks.
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