Ok, maybe there is a reason for this that I am just unaware of. That could very easily be the case, so I'm asking for comments on this.
I have two companies, and I just made a deposit into each one at my local bank. The deposits consisted of about 10-15 checks for each company.
The teller verified all the amounts and looked through the checks and then informed me that in the near future, they would no longer accept checks that did not have the full company name on them (as the payee).
More over the fold...
Some of the checks said 'XYZ Corporation' and some said 'XYZ Corporation Inc'.
I receive a lot of checks monthly, and have partners that pay me from accounts set up with them up to 10 years ago. What is printed on the check is what is in their account systems...and it has never been a problem.
I asked if I would be hit with a fee, or the other company would be hit with a fee for the checks being returned to them...but the teller said no.
Has anyone else heard of this?
My first thought was that there would be returned check fees, and that the bank(s) are just trying to come up with ways to justify extra charges...but for now, the teller says that is not the case.
Does this make sense to anyone?
Have my checks been incorrect for a long long time, but the banks just didn't care?
If there aren't additional fees involved, then how is this helping anyone?
I can't remember any problem related to the company name on the check for either company I run, for as long as I have been receiving checks.
This makes me worry about sending checks to companies and having them returned because I didn't have their EXACT business name on them too.
I'm just puzzled about what is going on, and why this would be enacted.
Any ideas?