Did bank ask for proof of business

[knabb92]

What is the name of your state? Florida .. My husband and I are building a home and we are self-contracting it out. We found a cabinet man from the state of Georgia. We signed a contract with him with his "business" name of B & B Cabinets. We gave him a deposit of $5500.00 on a check written out of our building account.After 3 months of not returning calls, not delivering cabinets and no product we filed a suit against him.. My question is I have found out that B&B Cabinets is not a business, what are the rules about the bank cashing the check? The check was written out of my building account which is a checking account. The check was cashed at my bank by cabinet man.. Was he required to show proof of business? He does not have any accounts at this bank.

[Veronica1228]

Originally Posted by knabb92

What is the name of your state? Florida .. My husband and I are building a home and we are self-contracting it out. We found a cabinet man from the state of Georgia. We signed a contract with him with his "business" name of B & B Cabinets. We gave him a deposit of $5500.00 on a check written out of our building account.After 3 months of not returning calls, not delivering cabinets and no product we filed a suit against him.. My question is I have found out that B&B Cabinets is not a business, what are the rules about the bank cashing the check? The check was written out of my building account which is a checking account. The check was cashed at my bank by cabinet man.. Was he required to show proof of business? He does not have any accounts at this bank.

At my bank, our policy is that we NEVER cash checks made out to a company or business. They must deposit it into an account whose title matches the payee name of the check. In other words, if the the check is made out to ABC Company, the check can only be deposited into an account with the title of ABC Company. If they want any portion of that check in cash they must deposit the entire thing and then write a check from their account.

Your bank has some iffy practices. However, it doesn't make them responsible for the problem you are having with this company or individual. You can't hold them accountable for this.

[djohnson]

However, another common practice and perfect legit would be for him to produce the check to your bank in order to have guaranteed funds and the bank cut him a bank check or cashiers check for the amount minus a fee to the name of the business and he could deposit that into his business account.