The bank is after me for fraud! I deposited a check into my business account made payable to my business by my client. It was an insurance check that was originally made payable to my client. He endorsed the check along with PAY TO THE ORDER OF: me. I in turn endorsed it and deposited it. Now my bank has restricted all three of my accounts, personal and business. I am unable to withdraw any money or use my debit cards. I have contacted my bank's customer service department only to be told on a Friday evening after hours that I need to speak to the loss management department regarding the check being returned for forgery. The loss management department will not be back in their office until Monday. This check was not forged by me. How do I handle this situation when I speak to them on Monday morning? What are my rights? How can they restrict all of my accounts? What can happen in this situation?
It seems someone in the bank got concerned about the fact that you deposited a check payable to a third party, notwithstanding the fact that the payee endorsed the check to you. Many banks have policies against accepting checks with a second endorsement like that. The bank may be even more concerned that the check was issued by an insurance company, which might be really nit-picking about endorsements on the checks it issues.
Is is possible that the check in question was issued to two payees (in the form of PAYEE-ONE AND PAYEE-TWO)? That would definitely be a problem if the second payee had not endorsed the check.
Whatever the reason behind the bank's actions, they do appear a bit over the top given what you've described as the events leading up to the deposit. Contact the Loss Management Department with an open mind, and listen carefully to what they tell you. Then explain how you received the check, and from whom. If your explanation doesn't get your funds released, your next visit should be to an attorney.
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
It seems someone in the bank got concerned about the fact that you deposited a check payable to a third party, notwithstanding the fact that the 