Paying in cheque made out to someone else!

Discussion in 'UK Finance' started by dave, Aug 24, 2005.

  1. dave

    dave Guest

    Nothing devious. My lad has been give a cheque for some part time work he's done
    - but he doesn't have a bank account. He's reluctant (understandably) to ask for
    cash payment now he'd been given this cheque. Can I pay it into my account and
    give him the cash? ie Is it possible for me to pay *his* cheque into my account
    if, say he countersigns it (or whatever needs to be done.) Does he need to be
    present when I pay it in (if payin is even possible)?
    Thanks
     
    dave, Aug 24, 2005
    #1
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  2. dave

    Fred Smith Guest

    dave wrote:

    > Nothing devious. My lad has been give a cheque for some part time work he's done
    > - but he doesn't have a bank account. He's reluctant (understandably) to ask for
    > cash payment now he'd been given this cheque. Can I pay it into my account and
    > give him the cash? ie Is it possible for me to pay *his* cheque into my account
    > if, say he countersigns it (or whatever needs to be done.) Does he need to be
    > present when I pay it in (if payin is even possible)?


    You aren't suposed to be allowed to do this - so two options spring to
    mind. Firstly he opens a deposit account at a building society with a
    few quid cash and then deposits the cheque. Not too difficult a
    process. Secondly you add him to your account in some way and then pay
    it in. You could always revoke his access to your account later.
     
    Fred Smith, Aug 24, 2005
    #2
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  3. "dave" <> wrote in message
    news:...
    > Nothing devious. My lad has been give a cheque for some part time work
    > he's done
    > - but he doesn't have a bank account. He's reluctant (understandably) to
    > ask for
    > cash payment now he'd been given this cheque. Can I pay it into my account
    > and
    > give him the cash? ie Is it possible for me to pay *his* cheque into my
    > account
    > if, say he countersigns it (or whatever needs to be done.) Does he need to
    > be
    > present when I pay it in (if payin is even possible)?
    > Thanks


    Not officially. But sometimes I have written my name above the wrong name
    on the check, crossed out the original and initialled it as the drawer,
    since there is no fraud intended I do not feel guilty about this and have
    never had a problem, although it is probably not legal.

    mrcheerful
     
    mrcheerful , Aug 24, 2005
    #3
  4. dave

    dave Guest

    On Wed, 24 Aug 2005 10:16:05 GMT, "mrcheerful
    .." <> wrote:

    >
    >"dave" <> wrote in message
    >news:...
    >> Nothing devious. My lad has been give a cheque for some part time work
    >> he's done
    >> - but he doesn't have a bank account. He's reluctant (understandably) to
    >> ask for
    >> cash payment now he'd been given this cheque. Can I pay it into my account
    >> and
    >> give him the cash? ie Is it possible for me to pay *his* cheque into my
    >> account
    >> if, say he countersigns it (or whatever needs to be done.) Does he need to
    >> be
    >> present when I pay it in (if payin is even possible)?
    >> Thanks

    >
    >Not officially. But sometimes I have written my name above the wrong name
    >on the check, crossed out the original and initialled it as the drawer,
    >since there is no fraud intended I do not feel guilty about this and have
    >never had a problem, although it is probably not legal.
    >
    >mrcheerful
    >

    Thanks. Time was I could call up my bank and ask a human being what to do. Now I
    get a machine followed by options, delays, then someone on Mars :) (If I'm
    lucky).
     
    dave, Aug 24, 2005
    #4
  5. dave

    Tim Guest

    "dave" wrote
    > Nothing devious. My lad has been give a cheque for some
    > part time work he's done - but he doesn't have a bank account.
    > ... Can I pay it into my account and give him the cash?


    Is the cheque crossed "Account Payee" ?
     
    Tim, Aug 24, 2005
    #5
  6. Tim wrote:

    > "dave" wrote
    >> Nothing devious. My lad has been give a cheque for some
    >> part time work he's done - but he doesn't have a bank account.
    >> ... Can I pay it into my account and give him the cash?

    >
    > Is the cheque crossed "Account Payee" ?


    Most are as a matter of course. Does it mean anything? No, otherwise
    all those cheque cashing shops simply could not operate.

    I understand, probably from one of JB's missives from ages ago,
    that the payee can *insist* that the collecting bank attempt to
    collect even though the cheque contains technical irregularities
    such as having the wrong date or wrong payee or being signed by
    "Mickey Mouse". Provided the drawee notices nothing wrong with it,
    which they won't unless it's for an unusually large amount or the
    account is overdrawn, it should go through OK.
     
    Ronald Raygun, Aug 24, 2005
    #6
  7. Fred Smith wrote:

    > You aren't suposed to be allowed to do this - so two options spring to
    > mind. Firstly he opens a deposit account at a building society with a
    > few quid cash and then deposits the cheque. Not too difficult a
    > process.


    Where does he find the utility bills, not including mobile phone bills,
    required to prove his identity to the bank?
     
    Jonathan Bryce, Aug 24, 2005
    #7
  8. dave

    Rob Guest

    Just give it a go.

    Go to your bank, fill out the paying in slip and pay in the cheque.

    It worked for me a couple of years ago. I accidentaly paid in a cheque
    meant for someone else into my account by mistake. No one noticed and
    the money appeared in my account.
     
    Rob, Aug 24, 2005
    #8
  9. dave

    Fred Smith Guest

    Jonathan Bryce wrote:
    > Fred Smith wrote:
    >
    >
    >>You aren't suposed to be allowed to do this - so two options spring to
    >>mind. Firstly he opens a deposit account at a building society with a
    >>few quid cash and then deposits the cheque. Not too difficult a
    >>process.

    >
    >
    > Where does he find the utility bills, not including mobile phone bills,
    > required to prove his identity to the bank?


    In the past year all three of my children opened accounts - and none of
    them had utility bills. The bank (HBOS) used a copy of their passport
    (identity) and my details (proof of address), to open an account in
    their names. The banks aren't required to see utility bills - it just
    forms a part of their screening process.

    If the OP's Son is in his twenties or older a bank may require more.
     
    Fred Smith, Aug 24, 2005
    #9
  10. dave

    Tim Guest

    > "Tim" wrote:
    > > Is the cheque crossed "Account Payee" ?

    >

    "Ronald Raygun" wrote
    > ... Does it mean anything?


    If I remember it correctly, the law changed on this matter in the
    mid-nineties.
    Previously, there was no statute on "account payee" and it was
    unenforceable; but it was then that statute was passed giving specific
    meaning to those words.
    JB, can you confirm?
     
    Tim, Aug 24, 2005
    #10
  11. dave

    john boyle Guest

    In message <%TZOe.95316$>, Ronald
    Raygun <> writes

    >> Is the cheque crossed "Account Payee" ?

    >
    >Most are as a matter of course. Does it mean anything? No, otherwise
    >all those cheque cashing shops simply could not operate.
    >
    >I understand, probably from one of JB's missives from ages ago,
    >that the payee can *insist* that the collecting bank attempt to
    >collect even though the cheque contains technical irregularities
    >such as having the wrong date or wrong payee or being signed by
    >"Mickey Mouse". Provided the drawee notices nothing wrong with it,
    >which they won't unless it's for an unusually large amount or the
    >account is overdrawn, it should go through OK.
    >


    Only 9/10 this time RR, you are right about insisting that the
    collecting bank collect a cheque that appears to be technically
    irregular on the face of it, but you cant insist where the problem is
    the 'wrong payee' because to collect such a cheque, and the cheque were
    paid, would leave the collecting bank open to a claim for conversion
    from the real payee (if such a person exists).
    --
    John Boyle
     
    john boyle, Aug 24, 2005
    #11
  12. dave

    john boyle Guest

    In message <>, Rob
    <> writes
    >Just give it a go.
    >
    >Go to your bank, fill out the paying in slip and pay in the cheque.
    >
    >It worked for me a couple of years ago. I accidentaly paid in a cheque
    >meant for someone else into my account by mistake. No one noticed and
    >the money appeared in my account.
    >

    Did the real payee lose out?
    --
    John Boyle
     
    john boyle, Aug 24, 2005
    #12
  13. dave

    Rob Guest

    No, it was for my girlfriend. She gave me the cheque to pay into her
    account. Set off half asleep early on saturday morning and paid it into
    my account instead. We have completely different names and bank
    accounts in different banks. The bank never queried it. Naturaly we had
    a laugh about it and I gave her the money.

    Banks don't seem to perform even the most basic of security checks,
    such as lookng at the signature or name. Back in the 80's someone stole
    some cheques from my cheque book and wrote them out to himself
    attempting to forge my signature. It didn't even come close. The bank
    still transferred the money into his account though.
     
    Rob, Aug 25, 2005
    #13
  14. dave

    Chris Blunt Guest

    On 25 Aug 2005 00:46:52 -0700, "Rob" <> wrote:

    >Banks don't seem to perform even the most basic of security checks,
    >such as lookng at the signature or name. Back in the 80's someone stole
    >some cheques from my cheque book and wrote them out to himself
    >attempting to forge my signature. It didn't even come close. The bank
    >still transferred the money into his account though.


    They do check the signatures on some cheques, but only for a tiny
    proportion of the total number they process. I believe only cheques
    above a certain value are checked.

    Chris
     
    Chris Blunt, Aug 25, 2005
    #14
  15. john boyle wrote:

    > In message <%TZOe.95316$>, Ronald
    > Raygun <> writes
    >
    >>> Is the cheque crossed "Account Payee" ?

    >>
    >>Most are as a matter of course. Does it mean anything? No, otherwise
    >>all those cheque cashing shops simply could not operate.
    >>
    >>I understand, probably from one of JB's missives from ages ago,
    >>that the payee can *insist* that the collecting bank attempt to
    >>collect even though the cheque contains technical irregularities
    >>such as having the wrong date or wrong payee or being signed by
    >>"Mickey Mouse". Provided the drawee notices nothing wrong with it,
    >>which they won't unless it's for an unusually large amount or the
    >>account is overdrawn, it should go through OK.
    >>

    >
    > Only 9/10 this time RR, you are right about insisting that the
    > collecting bank collect a cheque that appears to be technically
    > irregular on the face of it, but you cant insist where the problem is
    > the 'wrong payee' because to collect such a cheque, and the cheque were
    > paid, would leave the collecting bank open to a claim for conversion
    > from the real payee (if such a person exists).


    But you could indemnify the bank against such a claim, which would be
    the obvious thing to do in the typical scenario where you are laun^H^H^H^H
    processing a cheque for a friend or relative.
     
    Ronald Raygun, Aug 25, 2005
    #15
  16. dave

    Tim Guest

    > john boyle wrote:
    > > ... you cant insist where the problem is the 'wrong payee'
    > > because to collect such a cheque, and the cheque were
    > > paid, would leave the collecting bank open to a claim for
    > > conversion from the real payee (if such a person exists).

    >

    "Ronald Raygun" wrote
    > But you could indemnify the bank against such a claim, which
    > would be the obvious thing to do in the typical scenario where you
    > are laun^H^H^H^H processing a cheque for a friend or relative.


    But if you *are* a money laun^H^H^H^H processor, do you think the bank would
    accept your indemnity?
     
    Tim, Aug 25, 2005
    #16
  17. Tim wrote:

    >> john boyle wrote:
    >> > ... you cant insist where the problem is the 'wrong payee'
    >> > because to collect such a cheque, and the cheque were
    >> > paid, would leave the collecting bank open to a claim for
    >> > conversion from the real payee (if such a person exists).

    >>

    > "Ronald Raygun" wrote
    >> But you could indemnify the bank against such a claim, which
    >> would be the obvious thing to do in the typical scenario where you
    >> are laun^H^H^H^H processing a cheque for a friend or relative.

    >
    > But if you *are* a money laun^H^H^H^H processor, do you think the bank
    > would accept your indemnity?


    Why not? All it means is that if JB gives me a cheque payable to you,
    and I ask my bank to put it into my account, and the bank says "but
    what if Tim sues us for conversion", I just tell them not to worry,
    and if he does then I'll give him the money.
     
    Ronald Raygun, Aug 25, 2005
    #17
  18. dave

    Tim Guest

    > > "Ronald Raygun" wrote
    > >> But you could indemnify the bank against such a claim, which
    > >> would be the obvious thing to do in the typical scenario where you
    > >> are laun^H^H^H^H processing a cheque for a friend or relative.

    > >

    > "Tim" wrote:
    > > But if you *are* a money laun^H^H^H^H processor,
    > > do you think the bank would accept your indemnity?

    >

    "Ronald Raygun" wrote
    > Why not? All it means is that if JB gives me a cheque payable
    > to you, and I ask my bank to put it into my account, and the
    > bank says "but what if Tim sues us for conversion", I just tell
    > them not to worry, and if he does then I'll give him the money.


    But isn't it a bit late, if you've cleaned-out the a/c and left the country?
    The bank might not believe that you'd still be there, or at least "there
    with the money left", when I got around to sueing them for conversion...
     
    Tim, Aug 25, 2005
    #18
  19. Tim wrote:

    >> > "Ronald Raygun" wrote
    >> >> But you could indemnify the bank against such a claim, which
    >> >> would be the obvious thing to do in the typical scenario where you
    >> >> are laun^H^H^H^H processing a cheque for a friend or relative.
    >> >

    >> "Tim" wrote:
    >> > But if you *are* a money laun^H^H^H^H processor,
    >> > do you think the bank would accept your indemnity?

    >>

    > "Ronald Raygun" wrote
    >> Why not? All it means is that if JB gives me a cheque payable
    >> to you, and I ask my bank to put it into my account, and the
    >> bank says "but what if Tim sues us for conversion", I just tell
    >> them not to worry, and if he does then I'll give him the money.

    >
    > But isn't it a bit late, if you've cleaned-out the a/c and left the
    > country? The bank might not believe that you'd still be there, or at least
    > "there with the money left", when I got around to sueing them for
    > conversion...


    Yes, it would be, but my bank knows me and trusts me. Actually, if it
    really were worried, it wouldn't let me clean out the account until it
    was satisfied you'd had your dosh.
     
    Ronald Raygun, Aug 25, 2005
    #19
  20. dave

    Tim Guest

    > >> > "Ronald Raygun" wrote
    > >> >> But you could indemnify the bank against such a claim, which
    > >> >> would be the obvious thing to do in the typical scenario where you
    > >> >> are laun^H^H^H^H processing a cheque for a friend or relative.
    > >> >
    > >> "Tim" wrote:
    > >> > But if you *are* a money laun^H^H^H^H processor,
    > >> > do you think the bank would accept your indemnity?
    > >>

    > > "Ronald Raygun" wrote
    > >> Why not? All it means is that if JB gives me a cheque payable
    > >> to you, and I ask my bank to put it into my account, and the
    > >> bank says "but what if Tim sues us for conversion", I just tell
    > >> them not to worry, and if he does then I'll give him the money.

    > >

    > "Tim" wrote:
    > > But isn't it a bit late, if you've cleaned-out the a/c and
    > > left the country? The bank might not believe that you'd
    > > still be there, or at least "there with the money left",
    > > when I got around to sueing them for conversion...

    >

    "Ronald Raygun" wrote
    > Yes, it would be, but my bank knows me and trusts me.


    Even if you wanted to start money laundering?!

    "Ronald Raygun" wrote
    > Actually, if it really were worried, it
    > wouldn't let me clean out the account
    > until it was satisfied you'd had your dosh.


    In which case, *why* would they need the indemity?
     
    Tim, Aug 25, 2005
    #20
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