Tweet
Part of the suck here is not the customer's fault, but rather the investment company that does not warn them what they need when they tell the customer to go to their bank to get a signature guarantee.
Background: there is a type of stamp called a Signature Guarantee, sometimes referred to as a Medallion Guarantee. It can be required for certain types of investment changes, like when you are changing ownership on a mutual fund or stocks (maybe due to a death of the original owner) or transactions. The customer will get a stack of forms they need to fill out from whatever investment company they are with, and at the back of the form there will be a place for their signature and a box that will often say something like "Must have medallion signature guarantee stamp. Do NOT use a notary."
So, of course, you get the customers that come in and immediately ask for a notary. READ YOUR FORM. A notary can NOT help you.
----------------------------
So, the customer finally signs in for a signature guarantee. And unless they are lucky on the timing, they will wait, because only the managers and assistant managers at my bank are given the authority for signature guarantees. But If I notice that the customer is signed in, I will go over to check on them to make certain that they have what they need. Because they won't. Not EVER.
Me: I see this is a transfer of a mutual fund to the named beneficiary due to a death. That means we will need a copy of the account statement (less than 90 days old), showing the balance and current owner, and a certified copy of the death certificate. We also need something showing that you are the named beneficiary for the account. (That last, usually, is actually provided by the investment company with the forms, but not always.)
customer: Why do I need that? I wasn't told I needed to bring anything except my photo ID. Even though I didn't know what a signature guarantee was two days ago, I have now had this sort of stamp done for me dozens of times, and I have never had to provide all of that information.
Me: A medallion signature guarantee is NOT a notary. By stamping this form, our bank takes responsibility for the basic details being correct. This means we MUST be able to verify that the name being removed is the name actually on the account and that, since it is being transferred due to a death, that said person has passed away. We also must be able to verify that you are the person to whom the account is supposed to go to. In addition, we must verify the balance because my bank is only able to do signature guarantees up to $500,000 and we must have proof that the account in question does not go above that limit.
customer: *whine* But I was told all I need is my photo ID! I have to have this done today! Eleventy!!!
Me: We do have computers available. If you are able to access the account online, you may be able to print out a copy of the most recent statement. That should have the ownership and balance information. If you were listed as a pay on death beneficiary, the statement may show that as well. However, we will still require a copy of the death certificate.
(side rant: seriously, what part of the process involving someone who has passed away does NOT require a copy of the death certificate? You can't do anything without it.)
customer: But they already have all of that information!
Me: They may have all of the required information, but we do not, and we are the ones being asked to make our financial institution liable for making certain that this is done correctly.
Customer: But they said all I would need would be my photo ID!
Me: We need more than a photo ID because this is NOT a notary. We are doing more than verifying that you are the person who signed. We GUARANTEE that you are the person who is SUPPOSED to sign this form.
rinse/repeat
*sigh*
Worse is, from what I have heard, there ARE some banks around that will simply stamp the forms without proper documentation. Great for them. My bank isn't big enough to take on that liability if something goes wrong.
Background: there is a type of stamp called a Signature Guarantee, sometimes referred to as a Medallion Guarantee. It can be required for certain types of investment changes, like when you are changing ownership on a mutual fund or stocks (maybe due to a death of the original owner) or transactions. The customer will get a stack of forms they need to fill out from whatever investment company they are with, and at the back of the form there will be a place for their signature and a box that will often say something like "Must have medallion signature guarantee stamp. Do NOT use a notary."
So, of course, you get the customers that come in and immediately ask for a notary. READ YOUR FORM. A notary can NOT help you.
----------------------------
So, the customer finally signs in for a signature guarantee. And unless they are lucky on the timing, they will wait, because only the managers and assistant managers at my bank are given the authority for signature guarantees. But If I notice that the customer is signed in, I will go over to check on them to make certain that they have what they need. Because they won't. Not EVER.
Me: I see this is a transfer of a mutual fund to the named beneficiary due to a death. That means we will need a copy of the account statement (less than 90 days old), showing the balance and current owner, and a certified copy of the death certificate. We also need something showing that you are the named beneficiary for the account. (That last, usually, is actually provided by the investment company with the forms, but not always.)
customer: Why do I need that? I wasn't told I needed to bring anything except my photo ID. Even though I didn't know what a signature guarantee was two days ago, I have now had this sort of stamp done for me dozens of times, and I have never had to provide all of that information.
Me: A medallion signature guarantee is NOT a notary. By stamping this form, our bank takes responsibility for the basic details being correct. This means we MUST be able to verify that the name being removed is the name actually on the account and that, since it is being transferred due to a death, that said person has passed away. We also must be able to verify that you are the person to whom the account is supposed to go to. In addition, we must verify the balance because my bank is only able to do signature guarantees up to $500,000 and we must have proof that the account in question does not go above that limit.
customer: *whine* But I was told all I need is my photo ID! I have to have this done today! Eleventy!!!
Me: We do have computers available. If you are able to access the account online, you may be able to print out a copy of the most recent statement. That should have the ownership and balance information. If you were listed as a pay on death beneficiary, the statement may show that as well. However, we will still require a copy of the death certificate.
(side rant: seriously, what part of the process involving someone who has passed away does NOT require a copy of the death certificate? You can't do anything without it.)
customer: But they already have all of that information!
Me: They may have all of the required information, but we do not, and we are the ones being asked to make our financial institution liable for making certain that this is done correctly.
Customer: But they said all I would need would be my photo ID!
Me: We need more than a photo ID because this is NOT a notary. We are doing more than verifying that you are the person who signed. We GUARANTEE that you are the person who is SUPPOSED to sign this form.
rinse/repeat
*sigh*
Worse is, from what I have heard, there ARE some banks around that will simply stamp the forms without proper documentation. Great for them. My bank isn't big enough to take on that liability if something goes wrong.
Comment