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Home >> Accounts >> Checking Accounts
Writing ID Info on Back of Checks
What do you think of a financial institution cashing checks for non-customers and writing their address and phone number on the back of a check?
I’m a banker and my supervisor pretty much requires it, although I don't think it is right considering there is really no logical reason for it. If the person is doing something wrong they are not going to give the correct info. Also I think there is privacy invasion there, and I can't believe she would have us do this knowing she has been through identity theft recently. I don't agree with this practice, but I do it so I don't get in trouble. What do you think?
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 There is nothing particularly wrong with the practice. It's one that has been in use for decades. Presumably, the address comes from the ID that's provided to confirm the payee's identity (rather than simply from a verbal statement from the payee). As a practice, recording this information may dissuade some persons from attempting to defraud the bank.
There's no real privacy issue here. The only party -- other than the bank -- that will have the time to review the information on the reverse of the check is the party that issued the check in the first place, presuming that party already has the payee's address, particularly if it's a payroll item.
A supervisor doesn't usually make up this sort of practice on his or her own initiative. Presumably the supervisor is following policy established by management, and for good reasons. Usually, following your institution's policy in an area like this is a good idea, even if you are not comfortable with it. You may be in a position later to be able to influence your bank's practices, but until then, following procedure so you don't get into trouble is a worthwhile goal.
Published on BankingQuestions.com 10/03/06
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