Depositing check with 2 names in the "Payee" section

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BHOCnewbie
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Joined: Sun Jul 12, 2015 7:03 pm

Depositing check with 2 names in the "Payee" section

Post by BHOCnewbie » Mon Feb 12, 2018 11:07 pm

Have a situation where I need to deposit a check that has both my wife and mother-in-law's (MIL) names with an "and" in between both the names. The banks are not depositing the check since they expect both names that show up on the check have to be joint account holders in the bank.

Unfortunately we live across the country from our in-laws. Our bank suggested that my MIL will need to get her bank to validate her signature on the back of the check and mail it to us and we can then deposit the check once my wife endorses the check. But my MIL's bank refused to validate her signature leaving us in a quandary.

Other than opening an account with both their names on the account, have any of you run into this type of situation and how did you resolve this?

any thoughts/feedback appreciated.

Thanks,

UpperNwGuy
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Re: Depositing check with 2 names in the "Payee" section

Post by UpperNwGuy » Mon Feb 12, 2018 11:11 pm

Can you ask the person who wrote the check to write a replacement check with only one payee?

123
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Joined: Fri Oct 12, 2012 3:55 pm

Re: Depositing check with 2 names in the "Payee" section

Post by 123 » Mon Feb 12, 2018 11:19 pm

Dealing with real people is bound to lead to problems. Have you tried depositing it at the bank's ATM?
Last edited by 123 on Mon Feb 12, 2018 11:29 pm, edited 2 times in total.
The closest helping hand is at the end of your own arm.

Compound
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Re: Depositing check with 2 names in the "Payee" section

Post by Compound » Mon Feb 12, 2018 11:21 pm

I have never dealt with this type of situation before, but logically can’t you reverse the proposal? By that I mean have your wife’s bank validate the check then send it to MIL for deposit in her bank?

BHOCnewbie
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Re: Depositing check with 2 names in the "Payee" section

Post by BHOCnewbie » Mon Feb 12, 2018 11:22 pm

UpperNwGuy wrote:
Mon Feb 12, 2018 11:11 pm
Can you ask the person who wrote the check to write a replacement check with only one payee?
Thanks. We just closed an account at a brokerage and they were not willing to do that until we took "converted" the account from a joint account to a single account holder. So I took the what I thought was the easier problem to solve by working with the banks to deposit this check. but I realized its not that easy.

BHOCnewbie
Posts: 25
Joined: Sun Jul 12, 2015 7:03 pm

Re: Depositing check with 2 names in the "Payee" section

Post by BHOCnewbie » Mon Feb 12, 2018 11:23 pm

123 wrote:
Mon Feb 12, 2018 11:19 pm
Dealing with real people is bound to lead to problems. Have you tried depositing it at the bank's ATM?
Its a 5 figure amount hence bank warned me to not deposit in ATM as it will get rejected. I can try but don't want to go thru this and find out they were correct :happy

BHOCnewbie
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Re: Depositing check with 2 names in the "Payee" section

Post by BHOCnewbie » Mon Feb 12, 2018 11:24 pm

Compound wrote:
Mon Feb 12, 2018 11:21 pm
I have never dealt with this type of situation before, but logically can’t you reverse the proposal? By that I mean have your wife’s bank validate the check then send it to MIL for deposit in her bank?
Thanks. Same issue. MIL's bank is saying the same that bank account holders should match with that on the check esp. when there is an "and" on the payee field.

BHOCnewbie
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Joined: Sun Jul 12, 2015 7:03 pm

Re: Depositing check with 2 names in the "Payee" section

Post by BHOCnewbie » Mon Feb 12, 2018 11:26 pm

BHOCnewbie wrote:
Mon Feb 12, 2018 11:24 pm
Compound wrote:
Mon Feb 12, 2018 11:21 pm
I have never dealt with this type of situation before, but logically can’t you reverse the proposal? By that I mean have your wife’s bank validate the check then send it to MIL for deposit in her bank?
Thanks. Same issue. MIL's bank is saying the same that bank account holders should match with that on the check esp. when there is an "and" on the payee field.
meant to also add that my wife's bank at least gave us an option to get MIL's bank to validate her signature on back of the check and that is good enough, but MIL's bank says they don't "validate" signatures.

123
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Re: Depositing check with 2 names in the "Payee" section

Post by 123 » Mon Feb 12, 2018 11:29 pm

While it's not pretty you can "wash" the funds through your own account if your own financial institution will accept the deposit with all endorsement, including yours, and then you write a replacement check from your account.

Edited to add:
If you have a financial institution (bank/brokerage) that will accommodate you in this manner you may have to deal with a hold of something like 10 or more days for the check to clear.
The closest helping hand is at the end of your own arm.

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Pajamas
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Re: Depositing check with 2 names in the "Payee" section

Post by Pajamas » Mon Feb 12, 2018 11:58 pm

Have you contacted the bank the check is drawn on? Maybe you can cash it there. If it is out of town maybe they would accept notarized permission to replace it with a cashiers check made out to one person after a delay or just accept the signature with a notarized letter stating that it is genuine.

Honestly, sounds like it would be easier to just open up a joint account, deposit the check, wait for it to clear, and withdraw the money. Maybe you could even do it via a CD. But I guess the bank might insist on both parties being present to open the account. . . .

gotester2000
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Re: Depositing check with 2 names in the "Payee" section

Post by gotester2000 » Tue Feb 13, 2018 1:29 am

BHOCnewbie wrote:
Mon Feb 12, 2018 11:22 pm
UpperNwGuy wrote:
Mon Feb 12, 2018 11:11 pm
Can you ask the person who wrote the check to write a replacement check with only one payee?
Thanks. We just closed an account at a brokerage and they were not willing to do that until we took "converted" the account from a joint account to a single account holder. So I took the what I thought was the easier problem to solve by working with the banks to deposit this check. but I realized its not that easy.
If the brokerage was a joint account was there not a joint bank account linked to it originally?

BHOCnewbie
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Joined: Sun Jul 12, 2015 7:03 pm

Re: Depositing check with 2 names in the "Payee" section

Post by BHOCnewbie » Wed Feb 14, 2018 1:35 am

Just wanted to let you all know that I called up the bank in NJ and convinced them to validate my MIL's signature on the back of the check. They agreed to do so. Now I just hope our local bank does follow thru and accept to deposit this check here locally. Thanks for all your responses.

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