Am I right to assume that banks should not accept checks for deposit if the name on the check doesn't match the name on the account?
Untitled
Yes, you are generally correct, and banks often have specific policies on just that topic. However, it's still quite common for a check payee to endorse a check over to someone else before it is deposited, so there frequently is not a match of payee and depositor.
If a check payable to XYZ Company is deposited to an account belonging to a different person, as it might be if checks are mistakenly put in the wrong envelopes when paying bills, or if someone stole the check payable to XYZ Company, XYZ can sign an affidavit stating that it didn't receive or negotiate the check, and the payment can be unraveled. The bank accepting the check erroneously for deposit would be liable to the bank the check is drawn on, etc.
Published on BankingQuestions.com 8/17/07
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Yes, you are generally correct, and banks often have specific policies on just that topic. However, it's still quite common for a check 