Expert: Robin Sexton - 7/18/2008

Question
I live in Wisconsin.  My daughter and I floated checks to each other twice and my bank is asking me to close my accounts because they feel I was kiting.  There was no money lost by either financial institution.  Will my bank notify my daughter's bank of this matter?  My daughter gave me two blank checks to write to myself.  I wrote them to myself, then signed her name.  Can I be charged with forgery?

Answer
Jackie,

Check kiting use to be a lot more common prior to the digital processing of transactions.  Checks now clear almost immediately.  Although there was no loss for the institution the potential is there and these transactions can be risky for both banks and retailers.  They may notify your daughters bank or may not. It is individual decision with each bank.  As far as forgery, your daughter would have to complain.  Short of that the bank just doesn't have to honor the check, again their choice.  It is not a good practice to be signing someone else's name.

Hope this helped



Robin