If your settlement check arrives with a misspelled name or other error, you can often still deposit it by using the dual endorsement method: sign the check exactly as the name appears (including the error), then write your correct legal name beneath it and present photo identification to your bank teller. Under the Uniform Commercial Code Article 3, a check remains payable to the intended recipient even when the name is wrong, including situations where a nickname was used instead of your legal name. This legal protection means you may not need to wait weeks for a corrected check if you act strategically at your bank.
For example, if a class action settlement check arrives made out to “John Smithe” when your legal name is “John Smith,” you would endorse the back with “John Smithe” first, then write “John Smith” below it. However, if your bank still refuses the deposit, you have several options including requesting a hold on funds while they verify your identity with the issuing bank, or contacting the settlement administrator or your attorney to request a replacement check. This article covers the specific steps to take for various types of check errors, your rights under banking law, how to work with attorneys and claims administrators on corrections, and the liability protections that exist if something goes wrong during the settlement payment process.
Table of Contents
- How Do You Fix a Settlement Check Made Out to the Wrong Name?
- What to Do When a Settlement Check Goes to the Wrong Address
- Understanding Attorney Responsibilities for Settlement Checks
- Steps to Take Immediately When You Discover a Check Error
- Common Issues with Settlement Check Processing
- Your Rights If a Bank Improperly Cashes Your Settlement Check
- Preventing Settlement Check Problems Before They Happen
- Conclusion
How Do You Fix a Settlement Check Made Out to the Wrong Name?
The first approach to try is the dual endorsement at your bank. Endorse the check exactly as it appears””misspelling and all””then write your correct legal name on the line below. Bring valid photo identification and explain the situation to a bank teller rather than using an ATM or mobile deposit. Many banks will accept this solution on the spot because the UCC specifically permits payment to the intended recipient regardless of name errors. If the teller declines, escalate to customer service and ask them to process the deposit with a hold on the funds.
During this hold period, the bank can contact the issuing institution to confirm you are indeed the intended payee. This verification process typically adds a few days to when you can access your money, but it avoids the longer delay of requesting an entirely new check. When neither approach works, you will need to request a replacement check. Send written communication to your attorney or the settlement claims administrator explaining the error. Be aware that banks will not accept checks with scratch-outs or manual corrections””the original check becomes void the moment anyone attempts to fix it by hand, so a properly printed replacement is the only option at that point.
What to Do When a Settlement Check Goes to the Wrong Address
Address errors create a different problem because you may never receive the check at all, or someone else might intercept it. If your settlement payment was mailed to an incorrect address, you are entitled to have the check reissued. Contact the distributing party””whether that is a claims administrator, law firm, or defendant’s insurer””and request that they cancel the original check and issue a new one to your correct address. For class action settlements specifically, visit the settlement website and locate the Claims Administrator’s contact information.
These administrators handle thousands of claims and have procedures for exactly this situation. Keep in mind that canceling the original check and issuing a new one takes time because the administrator must confirm the first check was not cashed before releasing replacement funds. However, if the original check was already cashed by someone who was not entitled to receive it, the situation becomes more complicated. You may need to file a police report for mail theft and work with the claims administrator on a fraud investigation before receiving replacement funds. Document everything from the moment you discover the error.
Understanding Attorney Responsibilities for Settlement Checks
When you receive a settlement through legal representation, the check is often made payable jointly to you and your attorney. This joint payee arrangement exists to ensure the attorney can collect their fee, but it creates specific requirements. Both parties must endorse the check””your attorney cannot deposit it without your signature unless they have obtained your written permission in advance. California case law established in *Palomo vs.
State Bar* (1984) makes clear that an attorney’s general authority to pursue your claim does not include implied authority to endorse your signature on checks payable to you. This protection exists because settlement proceeds belong to the client until properly disbursed according to the fee agreement. Attorneys must also follow trust account rules when handling settlement funds. They are required to deposit the full settlement amount into a client trust account first, then withdraw only their agreed-upon fee portion. If you notice your attorney depositing a joint check without your endorsement, or failing to provide a full accounting of how settlement funds were distributed, these are serious ethical violations worth reporting to your state bar association.
Steps to Take Immediately When You Discover a Check Error
Acting quickly matters because settlement agreements often include deadlines for claiming your payment, and some checks become void after 90 or 180 days. The moment you notice an error, contact your attorney or the settlement administrator through the contact information provided in your original claim confirmation or settlement notice. Request written documentation of the error and keep copies of all correspondence. An email chain or certified letter creates evidence of when you reported the problem and what steps you took to resolve it.
This documentation protects you if there is later any dispute about whether you attempted to claim your settlement funds within the required timeframe. The tradeoff you face is speed versus certainty. Attempting the dual endorsement method at your bank is faster if it works, but if rejected, you have lost time that could have been spent requesting a new check. For larger settlement amounts, the safer approach is often to request a corrected check from the start, accepting the additional wait time in exchange for a cleaner transaction that is less likely to trigger bank holds or fraud reviews.
Common Issues with Settlement Check Processing
One frequently overlooked problem involves name changes between when you filed your claim and when the settlement check arrives. If you got married, divorced, or legally changed your name during the class action process, the check will likely bear your old name. Gather documentation showing the legal name change””marriage certificate, divorce decree, or court order””and bring these to the bank along with current photo identification. Deceased claimants create complications for family members attempting to collect settlement funds.
If the original claimant passed away after filing but before receiving payment, the settlement check may be made out to someone who can no longer endorse it. Estates typically need to work with the claims administrator and provide death certificates along with probate documentation showing who is authorized to receive funds on behalf of the deceased’s estate. A warning: some settlement checks include restrictive endorsement language such as “for deposit only to the account of the payee.” These restrictions can prevent you from cashing the check at a check-cashing store or endorsing it over to someone else. Read the front and back of the check carefully before attempting to negotiate it.
Your Rights If a Bank Improperly Cashes Your Settlement Check
Under UCC Section 3420, a bank commits conversion if it makes payment to a person not entitled to receive it. This means that if your settlement check was forged, stolen, or cashed by someone other than you, you have legal recourse against the collecting bank.
The payee whose endorsement was forged can sue the bank directly for the amount of the check. For example, if a roommate stole your settlement check from the mailbox, forged your signature, and deposited it at their bank, that bank bears liability for honoring a forged endorsement. You would file a claim with the bank and potentially pursue legal action to recover your funds, while the bank would then pursue the person who committed the forgery.
Preventing Settlement Check Problems Before They Happen
Many check errors trace back to the original claim filing. When you submit a class action claim, double-check that you have entered your legal name exactly as it appears on your bank account and government identification. Include your current mailing address and update the claims administrator if you move before receiving payment.
Looking ahead, more settlement programs are offering direct deposit options that eliminate paper check issues entirely. When given the choice between a physical check and electronic payment, the direct deposit option reduces the risk of address errors, name misspellings, lost mail, and forgery. If direct deposit is available for your settlement, it is usually the more reliable choice despite feeling less tangible than a check arriving in your mailbox.
Conclusion
Settlement check errors are frustrating but usually fixable. For name misspellings, try the dual endorsement method at your bank first””sign as the name appears, then add your correct legal name and show ID.
If that fails, contact the settlement administrator or your attorney in writing to request a corrected check, and keep documentation of all communications. Your key protections are the UCC provisions that recognize payment should go to the intended recipient regardless of name errors, and the liability rules that hold banks accountable for honoring forged endorsements. Act promptly when you discover any error, know your rights regarding attorney handling of joint checks, and maintain records of every step you take toward resolution.