Thread: Banking Frustration; Advice Needed

For the past three years, my bank has happily deposited all of my dance checks with my dance name on them into my main account, which is under my legal name. They just handed me a pen and had me write in the legal name next to "Leyla."

Until today; the teller told me that what I was doing was illegal and they would not cash the check. They gave it back to me and told me that there was "probably something I could do with the state to be a business." For a bank that does small business accounts, they don't know a thing about it.

So have any of you done anything with the state? I've already signed and written my account number on it, so I can't just open a business account and deposit it there. I don't think at least.

ETA: I found that MD, the state I'm in has a Trade Name Application. Will that work?

Any advice is appreciated! Thank you.

In order to deposit checks into my account made out to my business name, I had to file a DBA (Doing Business As) form with my county of residence. It cost $11, and I had to give a copy of it to the bank.

From what I have heard, the process varies wildly depending on where you live.

It is very weird that they couldn't tell you what documentation you need, though. Otherwise, how do they expect you to prove that you've "done something with the state to be a business?" Have you tried calling your bank's main customer service line, instead of just asking the people working at the branch?

Thank Lara!

It didn't occur to me to call the bank's main number, but I did and the woman was very helpful.

It looks like I've got to do the DBA, which in MD is referred to as a trade name, which I probably should have done already anyway!

Laura, maybe you can tell me then. Once you registered your name, did you just take a form to your bank? How do they know the two are the same?

Thanks!

Originally Posted by LeylaFahada

Laura, maybe you can tell me then. Once you registered your name, did you just take a form to your bank? How do they know the two are the same?

Thanks!

I just made a photocopy of it, and they added "DBA Galatea Middle Eastern Dance" to the account name.

Awesome, well hopefully my bank knows how to do this. I called the state dept in charge of this stuff and when I asked the woman some of my questions, she told me that the bank would have to answer that. I told her that they had directed me to her and she said, "well then, you might need to switch banks."

Thanks Laura; great info! I can finally calm down, stop eating cake, and go practice!

that's weird. If you were deposit the check in your bank account via ATM, it still would hit your bank account and you'd be able to withdraw those funds immediately (unless it is a fairly new account and you have a freeze period for check deposits)

The bank teller probably doesn't know a thing about it, but the person at your bank who opens new accounts should.

My experience, in Illinois, is exactly like Galatea's (she's in Wisconsin). Went to courthouse, paid a few $$ to file the form (maybe $10-20? I don't remember) then was required to run an announcement in the paper to tell the world. Then I received my certificate in the mail and took it to the bank, and they added DBA Lotus Arts Studio after my name on the account.

I just talked to a new bank who said they don't need to see the certificate, just make sure I have the DBA on the account name and it'll be fine, so it may vary by bank as well as by state.

Originally Posted by kemintiri

that's weird. If you were deposit the check in your bank account via ATM, it still would hit your bank account and you'd be able to withdraw those funds immediately (unless it is a fairly new account and you have a freeze period for check deposits)

...until/unless someone discovers that the check was altered by the recipient. It *is* illegal to accept a check from someone and then alter it after the fact.

Originally Posted by Lauren_

...until/unless someone discovers that the check was altered by the recipient. It *is* illegal to accept a check from someone and then alter it after the fact.

This is what kills me! I can't tell you how many times the tellers have handed me a pen and said, "Just write your legal name on the line next to Leyla." I started going in with it written on there.

Yeah it looks like I can do the DBA by mail, fax, or in person, and have it expedited so I can get it in a week. So that's nice at least. But of course I've already tampered with the check and I really, really don't want to ask the client to reissue - how embarrassing is that?!

I would go to a different teller for this one check. Or just wait, I wouldn't go back to the client.

Originally Posted by Lauren_

...until/unless someone discovers that the check was altered by the recipient. It *is* illegal to accept a check from someone and then alter it after the fact.

no, no alterations. you just sign the back and deposit it in your bank account. (sometimes I deposit checks without even signing them no problem)

the assumption is that is if you can deposit the check in the bank account, you have the pin and the card and you are therefore the rightful owner of that account. One client made me a check to "the best hairdresser ever" and I had zero problems cashing it in the ATM. I mean, even if they doubted that the cheque is legit, and they call the issuer. "did you issue a check to Leyla Fahada?" client will say yes. Like, there's no fraud here.

Leyla,
I'm glad to see you've found your answers and it's all in process. It shouldn't be a problem at all to deposit the check into the new account once you get it open.

You need to have a DBA Leyla (doing business as Leyla) put on your account title. In the computer system, it will probably look like having a second signer, even though it's just you. As you've already found out, you can get state documents to show registration of your DBA status.

When you have them change your account and add the DBA Leyla, make sure they put it in the computer (and not just on the signature card!). That way, if you ever have to do business at another branch, or if your bank is swallowed up by another bank, hopefully they will be able to find the computerized record for your DBA without pulling your physical/paper signature card.

Oh yes, and don't let them put number-soup in as the "corresponding taxpayer ID" of the DBA if their computer system requires it. It should either be your SSN, all 00s, or all some other number. If they put in number-soup as a dummy entry, then it'll cause problems some day, guaranteed!

Originally Posted by kemintiri

the assumption is that is if you can deposit the check in the bank account, you have the pin and the card and you are therefore the rightful owner of that account. One client made me a check to "the best hairdresser ever" and I had zero problems cashing it in the ATM. I mean, even if they doubted that the cheque is legit, and they call the issuer. "did you issue a check to Leyla Fahada?" client will say yes. Like, there's no fraud here.

FYI for those who deposit in ATMs: large checks, and any kind of state-issued checks (like tax refunds) get special scrutiny. So if you've been depositing your husband's paychecks into your private account every week for the past year, you should know that this probably won't work with his tax refund check. The bank will take the money out of your account WITHOUT WARNING, and send you back the check. It will take at least a week for you to get the check back, if not longer, and you're out the money until then.

Originally Posted by kemintiri

no, no alterations. you just sign the back and deposit it in your bank account. (sometimes I deposit checks without even signing them no problem)

the assumption is that is if you can deposit the check in the bank account, you have the pin and the card and you are therefore the rightful owner of that account.

You own the account, but that's not the same thing as owning the check. If you find -- or steal -- a check made out to me, you may be able to get away with depositing it, unsigned, via your ATM. But getting away with a thing doesn't make it legal.

Trust me I was a bank teller for years. Many tellers are lazy or undertrained and you can get away with a lot with some of them. But that doesn't make a thing legal.

In order to legally deposit a check, it has to be endorsed by the individual it's made out to, using the same name. if the check is made out to 'best hairdresser ever' you can probably sign that on the back and your legal name underneath it and be fine unless you run into a humorless bank worker along the way.

But to legally accept checks made out to a stage name, your account needs a DBA on it.

Originally Posted by SandraDances

I would go to a different teller for this one check. Or just wait, I wouldn't go back to the client.

Agreed. In this case, I'd try to slip that check through a different teller or wait until the DBA is done to deposit the check.

That's what happened at our bank - new teller at the window was a stickler for all of the new rules after 9/11 and we could no longer deposit a check made out to one of our businesses to just any of our accounts. It HAD to go into the account with the same name.

I recently opened a separate account with a DBA for my dance name. I did what Galatea and Lauren mentioned - filled out a form in my county, paid $10, had it stamped, and took it to the bank. I track all of my dance income and expenses separately, anyway, so now this account will make that even easier.

Originally Posted by Lauren_

In order to legally deposit a check, it has to be endorsed by the individual it's made out to, using the same name. if the check is made out to 'best hairdresser ever' you can probably sign that on the back and your legal name underneath it and be fine unless you run into a humorless bank worker along the way.

But to legally accept checks made out to a stage name, your account needs a DBA on it.

Originally Posted by Lauren_

You own the account, but that's not the same thing as owning the check. If you find -- or steal -- a check made out to me, you may be able to get away with depositing it, unsigned, via your ATM. But getting away with a thing doesn't make it legal.

Trust me I was a bank teller for years. Many tellers are lazy or undertrained and you can get away with a lot with some of them. But that doesn't make a thing legal.

In order to legally deposit a check, it has to be endorsed by the individual it's made out to, using the same name. if the check is made out to 'best hairdresser ever' you can probably sign that on the back and your legal name underneath it and be fine unless you run into a humorless bank worker along the way.

But to legally accept checks made out to a stage name, your account needs a DBA on it.

Lauren is right.

I worked in a bank for 10 years. Even if the cheque is made out to your name, but your name is spelled incorrectly, technically, you are supposed to endorse it the way it is made out, and then endorse it correctly, below the first endorsement. Then it becomes like a "second endorsement" (like when someone signs a cheque over to someone else.) Also, if the cheque is made out to "Susie Nippletassels", Susie is technically not supposed to endorse it "Sue Nippletassles" or "Ms. Nippletassles". She is supposed to sign "Susie Nippletassels" if that is what the payee line says. If the cheque is being deposited, with no cash back on the deposit, it is possible to endorse it, "For deposit only to the credit of the payee," but that payee's name has to be the name on the account.

I would never have accepted a cheque such as described in the original post, unless there was appropriate documentation on the account. And I do have a sense of humour.

Bank tellers are dealing with people's money. The rules tellers have to follow are there to protect people's money. Those rules aren't supposed to be subject to the teller's whims or moods. Believe me, people would get a helluva lot more upset if tellers didn't follow the rules, and something happened to their money.

I do appreciate all the info, and totally understand why checks should only be cashed to the person they're made out to. It was just so frustrating to go to the bank I've been using for years now and to be told that "there's probably something you can do with the state."

But I'm trying to fax in my application as I type this (the machine is acting up) so hopefully it will be fixed soon!