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ID Requirements: Third-Party Endorsed Money Orders

A friend recently gave me a money order written to him. He signed the back and handed it over to me. I deposited. The bank has cashed the money order. It was honored, but the bank will not release the funds to me.

The bank wants this guy to come in and sign forms with identification before they release the money to me. I thought that was the whole purpose of signing the money order. What can I do? (I am looking for the guy!)


If your bank accepted the money order and processed it for deposit (which seems to be the case, since you said it was "honored by the bank"), we don't see any excuse for the bank to continue holding the funds. Although the bank could place a rather long hold (up to eleven business days, which equates to about fifteen calendar days) on the deposit, it would have to release the hold at the end of that period.

If, on the other hand, the bank realized it didn't know the check payee's signature and hasn't yet officially accepted the deposit, the bank can continue to refuse the deposit until your friend provides them with documentation that his endorsement is genuine. Published on 6/12/07