I made a check payable to a corporation and the payee signed the company's name on the back, but put the account number for a different account underneath the endorsement. The bank allowed the check to be deposited into the other account. Does this violate any US statute?
Untitled
The bank was obliged to accept the check for deposit only to an account of the payee. Now, because you're stuck owing the money to the original payee, you should get the payee to sign an affidavit that it did not endorse or receive the proceeds of the check. Your bank should be able to supply a form.
When the payee gives you the affidavit, you should give it to your bank and ask that you receive back the amount that the bank erroneously paid on the check. Your bank then sends the check back to the bank that took it for deposit, which should reimburse your bank. You'll need to surrender the original, or the bank will have to use a copy. That bank then will try to get the funds back from whoever received credit for the check.
Whether or not the depositary bank gets its money back should not be your concern. You are entitled to get your money back from your bank, and then you can give the original payee another check.
Published on BankingQuestions.com 4/17/08
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The bank was obliged to accept the check for deposit only to an account of the 