Paying in cheque made out to someone else!


D

dave

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
 
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F

Fred Smith

dave said:
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.
 
M

mrcheerful

dave said:
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
 
D

dave

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).
 
T

Tim

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" ?
 
R

Ronald Raygun

Tim said:
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.
 
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J

Jonathan Bryce

Fred said:
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?
 
R

Rob

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.
 
F

Fred Smith

Jonathan said:
Fred Smith wrote:




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.
 
T

Tim

Tim said:
... 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?
 
J

john boyle

Ronald said:
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).
 
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J

john boyle

Rob said:
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?
 
R

Rob

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.
 
C

Chris Blunt

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
 
R

Ronald Raygun

john said:
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.
 
T

Tim

john said:
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?
 
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R

Ronald Raygun

Tim said:
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.
 
T

Tim

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...
 
R

Ronald Raygun

Tim said:
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.
 
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T

Tim

Yes, it would be, but my bank knows me and trusts me.
Even if you wanted to start money laundering?!

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?
 

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