Tackling fraud scams
Accompanying the April 6 article “Fraud Traps Await Unwary Associations” was a sidebar titled “Built-In Safety Checkpoints.” The first item in the list is “Require two signatures on checks . . . greater than $500.”
Most banks will not honor a request to require two signatures on a check for it to clear, especially for amounts as small as $500. They claim that automated processing of checks makes it impossible to monitor the number of signatures.
Some years back, I tried to get the California Legislature interested in mandating banks to honor such requests from nonprofit organizations, which would include homeowner associations.
However, my effort was unsuccessful because so many banks claim federal laws exempt them from such state mandates.
David E. Ross
Oak Park
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