bank signature cards

Started by JohnH18 • 12 replies • 3466 views

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JohnH18 (Georgia)
Posts: 17

Posted:

I went to the bank yesterday to get some copies of past bank statements for our permanent records and could not get them because our property manager had not turned in the signature cards. We have been using this manager for the past three years...no cards ever. This is a one person company. The reason I went to get the statements was because I could not get them from him. He had sent only two pages of a three page statement back in Jan 09. At least the bank confirmed for me what I thought was on that missing page...three overdraft fees of $35 charged against our account. I do not think we should pay these fees...it was his error. It makes one wonder what else is he hidding. This appears to be fraud...what do you think? The bank told me to get the manager down to the bank and correct this ASAP.

RogerB (Colorado)
Posts: 5,067

Posted:

John, I think Board members should be the only signees on the accounts. Why has it taken 3 years to find out about this? First look to thy self and then the manager. If it is due to his neglect then I would ask him to cover the cost.

HelenK1 (Washington)
Posts: 68

Posted:

Bank cards often have former board members on there that have never been removed. We had a similar circumstance when 2 of us got on the board and the president and property manager were dragging their feet getting us on the accounts and also withholding information. We found a homeowner who just happenned to be treasurer when the property manager was hired. He was still on the account and helped us at the bank. All it takes is someone who is on the account as a signer and some minutes for you to get on the account.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

I do not think we should pay these fees...it was his error. It makes one wonder what else is he hidding. This appears to be fraud...what do you think?

Not pay? He over drafted the account, he works for you, you pay.

Fraud? You hired him, nothing illegal about being an idiot.

If you want him off the bank account, you need a letter from him resigning and turning the account over to the treasurer and/or president. You need to write it. Next, phone him and tell him to meet you at the bank at 2pm. Walk into the bank with the letter signed by him and have him sign the account over.

Done deal in 24 hours. Why drag it out any longer?

MaryA1 (Arizona)
Posts: 7,043

Posted:

Steve,

I didn't get the impression the account was in the name of the PM, only that his name was on the sig. card. He doesn't need to be present to have his name removed from the sig. card. The Pres. of the assn should be able to go to the bank and obtain sig cards to be filled out by the individuals the BOD feels should be signatories on the account.

JohnH18 (Georgia)
Posts: 17

Posted:

Mary,
The HOA name is first , then the Management Co. name on the account. The only card on the account is that of the property manager. The bank does not know who I am.
Thanks

JoanneW2 (California)
Posts: 37

Posted:

Find our exactly waht the Bank policies require to change signatues on the account and do them right away. Write a certified retrn receipt letter to him and request that he meet you at the Bank at a certain date and time. If that doe not work have your attorney write a letter. Then two Board members should fire him after the banking is taking care of. Make sure you get your old statements also and have an idependent accountant go through the books.

The Board and community needs to do a much better job of managing the fianancial affairs of your community. As an ex-banker I would never give a management company total contol. If you hire someone else, have a limit on the amount they can write a check with only ONE signature. They need a Board members signature for anything over $500.00 for example. Good luck.

GlenL (Ohio)
Posts: 5,491

Posted:

It’s not all that complicated, ask the bank for some signature cards, go to the MC’s office and have him sign it, then have whoever you want from the HOA sign i.e. president & treasurer. Then return them to the bank along with your IDs and voila you are on the account.

Studies show that 5 out of 4 people have problems with fractions

MaryA1 (Arizona)
Posts: 7,043

Posted:

John,

Have you asked the bank what the requirements are to take the name of the mgmt co off the account and also to void his sig card and provide new ones? The name of the mgmt co should never have been put on the account because this would give them absolute access to all the funds in the account. Certainly not a good idea!

But, getting back to the problem at hand. The bank should not require the PM to appear in person to have his sig card voided. You should be able to go to the bank and obtain sig cards for all the signatories the BOD wants on the account. After everyone signs their card you should be able to take them back to the bank.

BTW, when the account was opened I'm sure the bank didn't know who the PM was either. How did he get a sig card? You may want to ask the banker about that!

JohnH18 (Georgia)
Posts: 17

Posted:

Mary,
The PM opened the account for the HOA.

TimB4 (Tennessee)
Posts: 21,059

Posted:

All,

Another example as to why you shouldn't give check writing authority over to a management company.

Tim

HelenK1 (Washington)
Posts: 68

Posted:

Best thing to do at this point is just open an entirely new account Find out from the bank exactly what documents you need from them. Tell the bank manager what is going on They will most likly help you with anything that does not jepardize them It's understandable and actually good that they do not let people just show up and add themselves to accounts, no matter what the story As far as they are concerned the old bank account was opened by PM and is his account. When you have opened your new account (and if you wondering where to get the money, If you have monthly dues payments instead of sending them to the pm use them to open new account (even if it's just a few checks of BOD to open account) From there you can instruct you HOA the new address where to send checks. You're going to have to do that anyway if you fire him From there tell the pm you want him to close his account and give you a check made out to the associaton for the balance You want to see all bank statements and if he does not cooperate you will contact an attorney.If he is fired he is legally obligated to turn over all records to you Check his contract with you Make sure all these actions are voted on by the board and minutes are recorded

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Did everyone notice this is a one man Management company. So he got the bank, acting as the Management Company to put him on the account, from what we read. Three years down the line someone question $45.00 worth of overdrafts. The Manager refuses to turn over pertinent documents, the bank refuses to give the association access to their account. I assume at some point the bank had to have authority to open the account from the Association. Who signed that authorityt? Was there ever any financial reports of any kind in three years, who drafted them? Were they published and accepted in the minutes?

You all go after this guy and you all are going to have a lot to answer for, especially those on the board for the last three years.

Better consider (as advised) starting fresh, first freeze all accounts, explain to creditors there will be a delay in payment, get an audit, get a lawyer and hope for the best. This could all be just sloppy work, but now you are on record and what ever goes forward, there will be some looking back.
Do the right thing, keep records, be as transparent to the members as advised by council, and hope for the best, do only what you need to keep you out of trouble.

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