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Home >> Accounts >> Business Accounts
Big Problems with Our Business Accounts
We opened an account three months ago and we have had nothing but nightmares with our bank.
1) There have been four requests made for our bank card and they have failed to send it.
2) We have an umbrella corporation with two legally registered divisions underneath. Sometimes customers write their checks out to the division. I have all of the documentation the bank needs to accept the deposits in the corporation and its two divisions, yet the bank still will not accept this. However, when we first inquired about banking with them they said it was no problem and accepted the deposits the first month.
At first they told me to get multiple EIN numbers. I had to fight with them explaining that the IRS doesn't allow multiple EINs. Then they told me to have multiple names on the articles of organization. Then I had to fight them with explaining that the government does not do multiple names. The government told me I needed to file with the register of deed and take the notorized, stamped records for the divisions to the bank and that is all that is required. I did that and the bank told me I just needed to re-organize my business.
3) A customer wrote us a $1000 check, then did a stop payment. About a week later he gave us certified funds to replace that money, but now my bank is telling me that all check deposits will be held for eleven days each for the next six months. Is that possibly legal? We have never had a returned check and they check for funds for each check before accepting the deposit as I sit in front of them at the counter.
I have have all my merchant accounts, checks, payroll, etc. set up with this bank (who I hate) but don't have the time to move it all.
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 Your current bank could benefit from some basic training in how corporations and their divisions operate. Clearly, you could operate with multiple deposit accounts, one for each division and one for the corporation, but there is no legal compulsion to do so. You could ask the bank if it would accept an endorsement with all three names, once it understands that you clearly do business under all three names. The records you have supplied the bank seem to document that fact. That the bank would suggest that you should reorganize your business is bizarre and unprofessional. As for the check deposit problems, the bank again seems ignorant of the regulations that apply.
You say that you don't have the time to move your accounts. Actually, you can't afford to waste more time trying to fight with a bank that appears not to understand your needs or how it should be operating. You need to invest the time to make the move. The sooner you do that, the sooner you will be able to spend time running your business instead of wasting time fighting the bank.
Published on BankingQuestions.com 1/13/09
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