‘Without cause’: Bank fires complaining client
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Tim Kindrick, 20-year veteran in the U.S. Army military police, still doesn’t understand why his bank told him to take a hike.PHOTO BY LISA PROVENCE
When Tim Kindrick went into his bank on September 23, he thought it would be business as usual to deposit a $2,100 insurance check he and his wife received for water damage. Kindrich ultimately got the check deposited, but when he complained about how it was handled, First Citizens froze his debit card and said it didn’t want his business.
“It kind of floored me and my wife, the way we were treated,” says Kindrick, 45, who’s retired from the Army.
He’d been banking with the Forest Lakes branch of First Citizens— motto: “We value relationships”— for about three years, had over $20,000 in his account and had deposited three or four similar checks already this summer with a teller who knew him, he says.
This time, a different teller said she couldn’t deposit the check because it was made out to both Kindrick and his wife Natalie, and the account was in his name only.
Natalie Kindrick had endorsed the check, but not with the special endorsement adding “make payable to Tim Kindrick” the bank wanted, he says. And when Tim Kindrick asked to see the policy, he says the bank manager told him she didn’t have time to look for it, and that this policy was to protect his wife.
The manager called Natalie to confirm her signature on the check, according to Kindrick, and then deposited it. “To me, the accusation is I forged her name and tried to steal the money,” he says.
Still peeved, Kindrick wanted to talk to a supervisor to see a copy of the endorsement policy, and says he was told someone would call him. That didn’t happen, says Kindrick, until five days later, when Jeremy Cox, the area operations manager, called to say that Kindrick could never deposit another third-party check in his First Citizens account.
“When I told him that I wanted to talk to someone higher than him about the decision, he told me, ‘No, the buck stops here,’” says Kindrick.
Kindrick decided he needed a new bank, and when he told Cox, he says the bank rep immediately froze his debit card and said he had 10 days to close his account. “It wasn’t a right to bank with them, it was a privilege,” Kindrick alleges Cox told him.
And on that particular decision, Cox was able to provide the policy: Page 34 of the “Deposit Account Agreement,” which states that the account can be closed at anytime “with or without cause.”
“I’m flabbergasted,” says Kindrick, “and shocked when I requested to talk to a supervisor, and was told no.”
Cox did not return a phone call from the Hook.
“Unfortunately I’m not going to be able to say anything because this speaks to a specific client matter,” says First Citizens spokesman Frank Smith.
In general, does Raleigh-based First Citizens, which has 359 branches in eight states and the District of Columbia, drop clients if they complain too much or the bank finds them annoying?
“We can’t comment,” says Smith. “It’s due to federal privacy law.”
“I can’t even write a check right now,” says Kindrick, who says he fears a check would bounce if it didn’t clear before the 10 days he was given to park his money elsewhere were up. And without the debit card that he estimates using about 50 times a month, Kindrick had to drive to the bank to get money until he opened a new account.
The Federal Deposit Insurance Corporation, which regulates First Citizens, has seen complaints about banks jump from 6,255 in 2008 to 8,289 in 2009.
And while there’s nothing to prevent a bank from ditching depositors, rejected clients can complain to the feds. “If they send in a written complaint, the FDIC will investigate,” says FDIC spokesman Greg Hernandez.
Meanwhile, Kindrick is still trying to figure out how asking to see a written policy led to First Citizens dumping him. Says Kindrick, “I feel very much like I was retaliated against.”
the bank’s motto must have been written by the same machine that produces them for the city
“We value relationships” = “Smart, Citizen-Focused Government”
If asked, I’m happy to send my goat in to make a few unique deposits of her own.
Banks are having the same problem every other business in America is having. Namely, the lack of good competent intelligent employees.
I feel…retaliated against. I didn’t understand what I was told. And then they didn’t have the time to talk me through it, and I felt worse and worse.
I demanded to talk to someone higher up, but that didn’t make me feel better, either, so
I wanted to see some one even higher jump. But they didn’t kiss up to me.
They made me feel, like they thought, that I didn’t know what they said, so I felt as if, well,..Flabbergasted. Shocked.
I’ll fell better at the Tea Party rally.
Thankyou for this article. I will add First Citizens to the name of banks with whom I will never do business.
1. Bank of America
2. First Citizens
Good to know.
Banks suck. A license to steal! All of them!
Thanks for the story. I have felt lately that the bank was treating me without respect also. I plan to move both of my accounts tomorrow.
If only I had an account there - I would close it immediately. First Citizen bank’s attitude is all too typical and an example of the financial arrogance that got this country into a huge mess that we had to bailout. Regulate those ungrateful hypocrits into submission.
Makes me wish I had a account with them so i could close it. We have not heard the last of this they don’t like bad publicity and more will come from them.
Are we sure Mr. Kindrick didn’t degrade any of the tellers? Seems odd that a big bank would fire him for no reason.
A solid business knows that the customer isn’t always right. We, as customers, sometimes think we can treat people in the service businesses like we own them.
If Mr. Kindrick was causing problems at the bank, it’s best for the bank and for Mr. Kindrick to part ways.
i work at a bank…. this whole problem was due to many issues but two stand out. 1) employees lack of consistency with following regulations which resulted in the teller who was doing his/her job to look like the bad guy. 2) its all in how you handle the situation and how you say it. BUT…. Unfortunetly customers also need to not twist things into “your accusing me”, “your questioning me”. Not to accuse this man but some people are really sensitive when it comes to banking. In banking the customer IS NOT ALWAYS RIGHT. Employees jobs are on the line. This situation would get the teller fired. Even if the customer does not complain, compliance partners will still act on this in a disciplinary matter. Yes, the only way to help the customer for this specific situation without sending him home was to call his wife. It is important to educate customers BUT own your mistakes as a manager. If the rest of the story is true the managers behavior was unacceptable! On the matter of “asking to see the policy”, not everything will be on paper for customers, rather internal, but the most common questions/issues you will find on a “Depositors Agreement” (big package when you open your account) employees must provide this to customers. If you want it in writing sometimes we cant give you the answer right then and there and have to call corporate which can take up to five business days but this should be clearly communicated to you. Again, please communicate and also be understanding and don’t take it personal. Working at a bank is seriously underestimated responsibility even for a teller where 1 wrong move gets you fired. Good luck, i hope you find a good banker.
Kindrick actually started the process by deciding to telling the bank he wanted to move his account to a new bank. He may have accelerated that process by stating his desire to move in less than professional language….
one last thing to add (a friendly FYI to everyone out there)…. every customer experience in a bank no matter who helps you CAN and WILL be documented and very easily pulled up on the computer. An ill behaved customer will be documented IN DETAIL. Calling 800 number is also documented soo you cant fool anyone unless it wasn’t documented. If you threaten to go to another branch to get what you want they will be notified as soon as you walk out. Remember RESPECT GOES BOTH WAYS. Again good luck :)
Hey, JK, I’ll add First Citizens to my list of banks to avoid also:
1) Wahovia (Walkoveryou)
2) First Citizens
I was considering having this bank be a co-trustee of a trust account, but after reading this I’m reconsidering. Do others have any experience with this bank–good or bad–to report? Thanks.
B of A has always done right by me.
I suggest that he take his business to the UVa Credit Union. In my opinion, they are the best in this area. Their customer has continued to grow over the years.
Excuse the error in my comment. Corrected- Their customer base has continued to grow over the years…
Mr. Kindrick, thank you for your service first of all.
I can recommend Navy Federal Credit Union. It’s open to all active and retired service members of any military branch and their families. A good organization in my experience. They treat their members with proper respect.
Corporate banks, in my experience, treat customers like a nuisance at best and, at worst, like dirt.
I like Sun Trust.
Mr. Kindrick does not understand his place in the greater scheme of things.
The bank is the master.
He is the servant.
Barack Obama, Tim Geithner and John Boehner will be happy to explain this to him in greater detail, if necessary.
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deal with a local bank! Virginia National Bank is a good one
I’ve dealt with BB&T for 8 years at several branches and have always been treated with the utmost respect.
There are long-standing banking policies and customs that address account holders, non-customer payees and required endorsements all based on the Uniform Commercial Code that covers all negotiable instruments.
The check as presented was not properly endorsed. The bank should not have accepted it. Phoning was not sufficient. If his wife did not have any relationship with the bank where they could verify her signature, the bank needed to verify her identity in person before accepting the check for deposit and even then they are under no obligation to accept a deposit that doesn’t meet the conditions laid out in the account agreement. The insurance check was probably a draft, not a check, and that opens up a whole other can of worms.
How they handled delivering the “bad news” to the customer is another matter. From his photo, it doesn’t appears he would handle “bad news” very well.
Here’s a sample policy from a credit union:
If two payees are on the check and it is being deposited into a single ownership account where one payee matches the account ownership, the non-member payee must be present and must endorse the check “Pay to the order of (the member)” in the presence of the Commonwealth Credit Union employee (MSR). The MSR will verify a photo ID and signature of the non-member payee. The member payee would then endorse below the non-member endorsement so the deposit could be made.
That’s a standard approach.
I don’t agree with a lot of what is going on with the banks these days so not trying to defend them and customer service is down the tubes everywhere.
HOWEVER: The teller was correct. It was not endorsed properly. PERIOD. Once they called his wife and because the teller knew him they graciously (or maybe not so graciously) agreed to let him deposit that check. Had they allowed him to deposit without taking those steps and his wife protested later, the bank would have eatn that $2100 and the teller would have been responsible.
Thank you for your service, Mr. Kindrick but there are two sides to this story. Whatever happened after that could have been prevented and this never would have been news.
Why do business with banks? We have a community credit union. And we do have a local bank in Charlottesville too.
If I had an account at First Citizens (I don’t) I would immediately close it down based on this story.
Listen, first and foremost, i too work in banking. Obviously, higher up the food chain than yourself. The issues at hand are numerous. You did outline one, however in this area banking needs to be a hometown venture. Its clear that these folks knew Mr Kendrick as their neighbor and friend, at least one teller did. He should be treated as such. You cannot accomadate the mans request and then decide to simply shut it down. If the call needed to be made, (which it didnt) it should have been done immediately and not been told he couldnt make the deposit. The Managers behavior is inexcusable, she needs to be fired immediately. For there, lies the real problem. Uneducated employees acting as if they have control…..the area operations manager i can promise you will suffer severely from this as well. The finanical markets and industry are struggling, folks bank with you because they k now you. THey know you treat them well and can offer them peace of mind and friendly service. Not because of your policies. So, “Listen” please spare me the company jargon because i wrote that book. Instead, understand that the requirements for being a teller are basically breathing and that in the grand scheme of thins, as harsh as this sounds, the customer IS MORE IMPORTANT THAN YOU. (ps, the customer is also always right. You might not be able to reach agreements but they need to be treated with respect and their requests accomadated)
What’s the big problem. Just take your business elsewhere. Plus, you can get a newspaper to run an article about it and get it posted on the web, like this. I suspect they’ll soon be some job openings at First Citizens.
UVA Community Credit Union is the best!!
@listener and also “a banker”
Your spelling and grammar skills are atrocious (especially yours, Mr. Higher Up On The Food Chain). If you represent the general calibur of local bank employee/manager/whatever, we are all screwed.
Dear “a Banker” why the hostility for no reason. I think you clearly didn’t understand what i said. if you are a banker than NO i am higher than you and respected in my district in this BIG Bank in a Management position. I have done every role in a bank including yours. Your message seems to imply that you probably have not. You arent thinking beyond your position as well as what happens to the deposit when it leaves the bank to be processed and possibly rejected. Good thing you are not a teller or a manager. But to get to the point. All customers are to be respected even if you know them or not, BUT no policy is to be broken because a customer is known. It is in bending and breaking these policies where the system breaks down in service and consistency falls apart. Again work with the customer to help them BUT educate them as well to avoid service breaks. Sometimes the customer will not get what they want hence the customer isn’t always right. An excellent employee can give the bad news, educate and successfully have the customer leave happy even if they didnt get what they wanted. Every situation is different. And i stand for what i said before in the teller not accepting the deposit because of the endorsement until a manager approved it and did the right thing by confirming with his wife if he didn’t want to go home. This simple problem could have been easily fixed if done right by the manager. There seems to be more to this story for such a drastic thing to happen to Mr. Kindrick or the manager should be seriously investigated. How it was handled unprofessionally, account shut down, and the rest is all downhill and too much to go into. Again good luck for those of you looking for banks and for Mr. Kindrick. For you “a banker” think the next time you make the decision revolving a regulation that was OBVIOUSLY created by someone HIGHER THAN YOU. Your disrespect of tellers as “simply breathing” is unacceptable. A tellers job is to be valued. They work with and see a lot of customers a day and are the face of that branch. The best employees will always be those well rounded that have gone up the “food chain”. I got the day off. What are you doing on the internet at 8:30 when you should be preparing to open the branch at 9.
I recommend Wachovia… a little biased but also because i know how everything there works. i bank there and plan to even if i leave working there. :)
Its not the banks, its the employees that make your experience there great. When you do choose your new bank a good manager should and will introduce you to every employee. :)
What ever happened to customer friendly business practises. Reactions like, “We want your business. How can we resolve this complaint?”. It seems businesses these days think there are an unlimited number of customers and this incident underscores that impression.
I understand banks need to protect their customers. I’ve gotten excellent services in this area recently from my bank. At the same time Mr. Kindrick reacted in an understandable way and no one at the bank cared enough about his business to give him the time to resolve his concerns.
That was all Mr. Kindrick likely wanted when he said he would look for a new bank. He had been told several times bank employees they didn’t care about his concerns. We’ve all wondered at sometime if a business wanted our business. Maybe Mr. Kindrick thought they would show caring if he threatened to take away his business. The answer seems obvious. They wouldn’t.
I also had problems with First Citizens. My problems were more of an annoying nature. I opened up a savings account and then forgot about it for years. Then one year, when I got my yearly statement, I saw they were charging me for having my savings account. So at the end of that year I had less money than when I started! Evidently their policy had changed and oddly enough, I didn’t get that memo. I did try to talk to someone but I found the bank tellers totally disinterested. This was also at the Forest Lakes Branch. I simply moved my money to UVa Credit Union where I have had a happy relationship!
This bank didnt come to your house and ask you to be a member, you chose it, so you kind of have to play by their rules. Rules which are put into place to protect customers. If this had gone the other way and they had let the check be cashed and then found out you werent who you said you were, you would have been upset. The facts are that they handled business the way it was supposed to be handle, by the book so to speak. Its not the tellers fault, they were merely following rules put in place by higher ups. If you think that an article on the hook will hurt First Citizens in any way with all its branchs in all its towns with all its customers you are mistaken. It todays economy/business environment 10-15 unhappy customers doesnt matter at all, its sad but true. There are plenty of banks in the area pick another…
Jackie, if you are forgotten that you have a bank account, then you probably have many more challenges ahead in your life…
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@Jackie, why would you talk to bank tellers about bank policy?
@Small town, small minds, your name says most of it.
@listen, you are right in most things, however, how do you know it was the wife that answered the phone and not a girl friend who had locked her up in a trunk downstairs and was waiting to escape with her lover using his wife’s money? How did the teller that “knew” him know that her wasn’t stockpiling his wife’s money into his personal account so he could eventually leave her destitue? There are reasons why banks have policies and I think the manager should take the knowing-teller aside and let him know his not following this policy to the letter in the first place precipitated these events in the first place. Also, the teller should not allow himself to bullied by a customer into bending the rules or regulations and he should have alerted the manager the first time it happened. Yes, I suspect there’s a bully in this story and I also suspect that somebody’s b ehavior was so obnoxious to the employees and other customers that the manager thought it was best that he not return to that bank. I witnessed that type of incident years ago and thought that the manager should have called the police.
I know the Kindricks. They are good people and not prone to exaggeration. If this story has made it this far it’s because of the abysmal way the bank handled this. The fact that it had never been a problem before and now all of a sudden it was impossible, what’s a customer to think? I think the bank manager had it wrong. It was a privilege to have the Kindrick’s business, not their right. I recommend UVA Credit Union or Virginia National…both local, both great to work with.
BTW First Citizens, enjoy the loads of bad publicity you’re getting!
@Crikey, I agree with you.
The statement that “bending the rules to accomodate the customer is the problem” is EXACTLY why people hate banks (or any business for that matter)The manager did the right thingby calling the wife and bending the rules. She could have also placed a hold on the funds to make sure and that would have been reasonable. This is not about the rule itself, this is about the banks treatment of a customer. This is like the auto shop who says “we are closed” at 5:31pm when your car just needs a wiper blade in the rain and you have spent thousands in repairs over the years. This is about the restaurant that won’t allow you to substitute a different side (regardless of the cost) when you are there with an entire family and the check will surely be over 150 bucks. Banks don’t get it. People need to hold them accountable and I am glad that this article was written so that first citizens (and other banks who are wiping their brow as they read the article)can maybe try and be a little more customer friendly next time.
@billmarshall, how do you know he talked to the wife? I’m sure you won’t answer this question. I guess the answer is he made a video call to her and compared her face to her driver’s liscense.
P.S., you certainly seem to need a lot of special attention.
@cville eye. I agree, there are a lot of what if’s out there thats why regulations are in place. There are alway steps to help the customer. Like you said @cville eye we forget the wife… a check that is half hers goes into an account that is his and once there she does not have access to it at all. IF, and thats a risk the manager takes, they can have the power to approve decisions with there name (job) on it. For this specific scenario where customer claims to be known and possibly the wife: Hopefully this manager knows that they are doing :) and every bank is different to a degree. The wife can only be called by the phone number on the system. NOT from customer, NOT from phone book, NOT from a cell phone. Manger will then ask specific questions and get her permission. If any are wrong then sorry, tough luck. These questions are certainly not the typical SS, birthdate, address… these are questions only the customer would know. I would certainly also verify the wife’s signature on the system by comparing it to images of her signature on older documents. When the manager does this they also should explain that the processing team can overrule it and reject the deposit, which is great because they are not biased they just see the document presented.
I also agree that threats of closing accounts and bullying to get what you want will not get you anywhere. People are also hypocritical, complain of the security procedures but when they are wronged they complain the bank didn’t protect them.
Keep in mind Managers do not have to do this and are not obligated even upon threat. Customers must clearly understand this a ONE TIME exception that will be documented. Also many simply don’t ever make exceptions. Its a decision each manager has to make. This is also an opportunity to review endorsement policy with the entire team to make sure everyone is consistent.
If the two commenting above really are bank employees, I hope they are more skilled in math than they are in the use of the English language.
@ C’ville Eye, you occasionally seem to have special needs yourself, so careful with the rocks.
I hate banks, insurance companies, and all the crooked lawyers that work for them both. So there.
How did Mr. Kendrick’s story even make it to this newspaper??
Are you that hard up for “news”??
If the bank doesn’t want to do business with you, get your money out of there!
Customer’s aren’t “entitled” to do business with anyone. It’s just normally not a problem.
@Cville eye, “small town, small minds” is actually a dig at this area, not an indication of my level of expertise. I actually prefer larger markets. This is the smallest place I have ever lived. That said, the rules are the rules. Problems occur when exceptions are made and treatment is inconsistent. Delivering “bad news” to a customer can be a challenge. A customer isn’t always right, but a customer is always the customer and they are free to go somewhere else. Telling him to take his business elsewhere was way over the top.
My personal observations have revealed a “Cville Syndrome” where employees here are not as skilled in/trained for/interested or whatever in delivering high quality customer service. Cville is NOT customer-driven. Take any national chain and see how you’re treated here. Go to a larger market and see how you’re treated in the same store there. Big Difference. Compare the stores. The Cville version is dirtier, less organized and the service is below par.
I don’t know if it’s arrogance, laziness or exactly what causes customer service to be below par here, but it is, with very few exceptions, and yes, there are some pleasant exceptions. I think the lack of competition is one contributing factor. Another is the labor pool and how difficult it is for “regular” folks to live here and earn a decent living. They’re not “happy campers” and it shows in how they treat customers.
In general, banking isn’t what it used to be. Knowing your customer and establishing a relationship has been replaced by transaction-based treatment with an eye on the bottom line. Just part of the increasing coarseness of our society, even in Cville.
@confused, same to you, hence the name.
@Small town, small minds I didn’t think you were describing yourself. Actually I thought you were talking to people commenting on this blog. The idea that that a bank manager would follow the directives of someone he can not identify over the phone mystifies me. I find it strange that most people on this blog seem to believe that the teller should have just deposited the check makes me wonder about the future. I suspect ost of them do not have bank accounts. Naive at best, stupid probably.
My family has been a long time customer and we’ve had nothing but the most wonderful customer service available! I usually have a youngster with me and so get distracted easily with his wanderings but the tellers are always so patient with my transaction. I love going to the Forrest Lakes Branch and wouldn’t bank anywhere else. Sorry to hear about someone else’s dealings but I can’t praise their customer service enough with us. And I’m in the customer service industry.
“crikey”–exactly. Many years ago I worked as a teller at First Union (later Wachovia); there is a great deal more skill required than simply breathing. Far too often I found myself in this teller’s position–compelled to follow company policy because it was the right thing to do, and because I was not about to lose my job trying to accommodate someone who could have graciously and politely returned with his wife, instead of making a mountain out of a molehill. What’s particularly infuriating about this kind of situation is that, had Mr. Kindrick’s account been compromised in any way by a teller who did NOT follow procedure, he most likely would have complained that the proper precautions weren’t taken. I’m still confused as to why Mr. Kindrick feels he was treated so disrespectfully; with rampant identity theft in this country, Mr. Kindrick should be ecstatic that an underpaid teller respected him and his money enough to question the deposit. I commend the teller for not allowing him or herself to be steamrolled. Customers should educate themselves on the terms and conditions that are given to them whenever they open a financial account, they might be surprised that “please the customer at all costs regardless of damage to our institution or reputation” is not a condition of the agreement.
A lot of stealing is going on between spouces, soon to be ex spouces. Cleaning out joint accounts, taking out all the equity out of a joint credit line on a house etc. They are right to have their own single accounts but they may want a joint household account also. Was one side or the other rude to the other side? I’ll hold my popcorn/opinion for the video to come out. (which a bank wouldn’t do of course)
What is a ’spouce’?
Sam is right, joint accounts are a big hassle for everyone. Best thing to do is keep separate accounts, and decide who pays for what. Also, Stellar One is the best bank we have ever done business with. Everyone is very pleasant, they know us on a first name basis, and will do anything to help us solve any problem. I can only speak for our particular local branch of course, but we try to do as much banking business with them as possible because we are always treated so well.
I recommend Union Bank, especially the Forest Lakes Branch. They are great to work with!
The fact that Mr. Kendrick told the reporter he was a 20 year veteran and the balance of his account just shows his sense of entitlement. I appreciate your service but it doesn’t mean you can’t steal. Sorry to tell Mr. Kendrick but $20k isn’t that much money. Bank employees see a lot of zeros on the end of numbers. If you think you are a high roller, think again. Wealthy people do not do their banking where you and I do. Granted I think the length someone is customer should make a difference but 3 years? I’m 30 and I’ve been banking at the same place for 14 years. Three years is nothing.
He was depositing a check that didn’t belong to him in his account. The check belonged to him and his wife. Tellers are usually fired for policy violations that total more than $2000. If this check had come back on her, she would be fired.
This teller was doing her job, following policy, and ten to one this guy threw a fit. Can’t you see it? “I’ve been banking here for 3 years. I have a lot of money with this bank.” If you have ever said these things to a bank employee, you my friend, think too highly of yourself.
I’ve never heard of a “make payable to” endorsement before. The wife signed the check, doesn’t it stand to reason that she wanted it cashed/deposited?
Banks have some weird rules and procedures. If I deposit a check into my bank at 9 AM the money isn’t actually in my account until sometime during the middle of the night. But I could instead cash the check and walk away with the cash right then. Does that make sense? I’ve been wanting to cash a check and then turn around and deposit the cash immediately, would it show up in my account right away?
After several years dealing with different banks because of my job, I learned which banks had the best customer service. If a bank treats a non-account holder in a friendly and respectful manner– even if that person doesn’t appear to be wealthy– then it’s a safe bet they treat their account holders well. Best customer service by far (at all branches) came from VA National and UVA Credit Union. Worst was Union Bank @ Pantops and any B of A branch. I’m now a very happy VA National customer.
Regarding Mr Kindrick, I think the teller handled things appropriately in protecting Mrs Kindrick’s interests. However, I think the manager should have been willing to work to keep the account there– barring any yelling and screaming behavior on Kindrick’s part, that is.
Wow, a lot of ego flyin around in these comments. o_O
Admittedly though Randy’s comment made me chuckle, because it was kind of spot on. “Sorry to tell Mr. Kendrick but $20k isn’t that much money. Bank employees see a lot of zeros on the end of numbers. If you think you are a high roller, think again.” :D :D
I see a lot of information here from people who seem to be in or know the banking industry so could you please clarify for me how the endorsement is incorrect.
By Virginia State Law specifically VA Code 8.3A-205(b), The signature alone is considered a blank endorsement and the instrument (i.e. check) becomes payable to bearer.
How does the Bank become responsible when their policy states the account holder is responsible for all endorsements as well as any loss or expense the bank may incur to include in some cases attorney fees (pg 11-12 First Citizens Policy Booklet).
This check was payable to one account holder and one non-account holder. That’s the rub! It’s a payee issue even before it gets to be an endorsement issue.
If a check is payable to two people, both names should be on the account for the item to be negotiated or the bank really needs to be diligent in positively identifying the non-account holder in person. Otherwise, the bank could be on the hook if the non-account holder later claimed they did not intend for the account holder to deposit the check. Don’t know what the statute of limitations is on endorsements, but I don’t imagine the account holder would appreciate having a “hold” on his account for the amount of the check for what ever that specified period of time is.
As for the account holder being on the hook for all prior endorsers, what happens if the account holder deposits the check, closes the account and the check is subsequently bounced back to the bank for some endorsement problem? Who’s on the hook then?
That’s what banks follow the Uniform Commercial Code.