Depositing checks made out to someone else

[rlsebring]

Florida

I am a PI and I receive payments for my clients from various entities. Sometimes these checks are made out to my client and/or their business. I always have a POA on the client and their business and my local bank, for the past 20 years, has always let me endorse then deposit these checks into my business account then I would make my payout to the client. My local bank recently merged with a much larger national bank and with my most recent check the bank refused the POA (they said they rarely honor any POA).

All of my local banks are now reginal or national banks and seem to be on the same page about the POA's. I am currently sitting on a check that I can not easily do any thing with. Does any one know of a work-around that would allow me to deposit these types of checks? I've been thinking escrow type of account or something along the lines of a lawyers client trust account.

Any ideas?

Thanks

 

[quincy]

Florida

I am a PI and I receive payments for my clients from various entities. Sometimes these checks are made out to my client and/or their business. I always have a POA on the client and their business and my local bank, for the past 20 years, has always let me endorse then deposit these checks into my business account then I would make my payout to the client. My local bank recently merged with a much larger national bank and with my most recent check the bank refused the POA (they said they rarely honor any POA).

All of my local banks are now reginal or national banks and seem to be on the same page about the POA's. I am currently sitting on a check that I can not easily do any thing with. Does any one know of a work-around that would allow me to deposit these types of checks? I've been thinking escrow type of account or something along the lines of a lawyers client trust account.

Any ideas?

Thanks

A client trust or escrow account could work. You should discuss this with your bank.

Why can’t you have your client endorse the check you are holding or, if the money from the check is for the client, forward the check to him?

 

[adjusterjack]

Do you mean that the checks are made out to your client and then your client endorses the check over to you? That shouldn't be a problem.

Or are you trying to deposit checks made out to your client that aren't signed on the back by the client? If that, I'm surprised that banks didn't put the kibosh on that long ago.

 

[quincy]

Do you mean that the checks are made out to your client and then your client endorses the check over to you? That shouldn't be a problem.

Or are you trying to deposit checks made out to your client that aren't signed on the back by the client? If that, I'm surprised that banks didn't put the kibosh on that long ago.

From what was written, it sounds like the latter to me - and I agree that it would be odd for a bank to allow unendorsed deposits.

Perhaps an endorsement stamp has been used in the past for these checks (one that says “deposit in account number whatever”)?

Rlsebring, are you still buying judgments?

 

[Litigator22]

Do you mean that the checks are made out to your client and then your client endorses the check over to you? That shouldn't be a problem.

No, the OP is not saying that his clients have been endorsing the checks over to him. (Were that so he wouldn't be here.)

What he is saying is that he holds a power of attorney for given clients. The problem is that as of recent the re-shuffled depositary bank will no longer honor his endorsement as the payee's attorney-in-fact. In his words:

". . . my {sic] most recent check the bank refused the POA (they said they rarely honor any POA)".

(In your words, they've put the kibosh to the former practice.)

 

[zddoodah]

Your post doesn't appear to raise any legal issue. Do you have a question about a legal issue?

 

[quincy]

Agreed. It is a bank policy question which can only be addressed by the bank.