I am having problems with my bank, Chase, regarding depositing third party checks (made out to my client versus to my company). As you know, a collection agency must set up a ‘trust’ account for their deposits. This was all initially set up, and everything was fine, until someone new in the drive-thru noticed that the check that I was depositing was not made out to my company. After a few days, my representative came to me saying that I had to set up ‘savings’ accounts in each of my clients names, so that I could continue to make deposits into my TRUST account. I had been doing this for about a month until yesterday, when I decided to go to another Chase location, which just so happened to be the one that my representative works at, and guess what happens? They forced me to make my deposit into my client’s savings account. My representative actually came to the drive-thru and told me that this is what he had set these up for and that I should have been doing this from day one.
My question is this: Do you know of a bank that you can recommend me using to avoid this problem? Or maybe some legal verbiage somewhere that explains how all of this is ‘supposed’ to work? – Thank you – William
I don’t know of any bank that will do this, I would say your teller that was doing this just was not paying attention.
When a debtor pays your agency they must make the check out to your agency in order for you to process the payment. If you get a check made out to your client, you have to contact the debtor for a new check, or take a check over the phone or take a credit card over the phone. You can also mail the check to the client with their bill for the
commission on that payment.