crossed cheques

[robisiek]

can a crossed cheque a/c payee be cashed to another persons account by the payee

[Didwot]

Yes, a cheque is a negotiable instrument and you can endorse a crossed chequ by writing on the back of it "pay so and so" and signing it. The Bills of Exchange Act 1992 applies to cheques. The crossings mean that the cheque should be paid into a bank account, and not as cash.

[sammy snake]

Didwot is incorrect I'm afraid.  A/c payee on a cheque means that the cheque can ONLY be paid into the account of the payee.  It cannot be signed on the back and given to someone else. The only way this could be done would be for the drawer of the cheque to cross out the 'a/c payee' part and sign the alteration.

[Didwot]

My fingers got on the wrong keys last time round, and the Bills of Exchage Act is 1882. I will post a fuller answer tomorrow or Wednesday.

[sammy snake]

I'm unaware of what the act says but I know for certain that I have worked for a major high street Bank for 20 years and we would NEVER accept an 'a/c payee' cheque into the account of anyone other than the payee.

[5029]

I agree with Sammy Snake, having also worked in a bank, a crossed cheque may only be deposited in the account of the receiver.

 

It may not be cashed either

[Uzoma]

That's true that the cheques cannot be encashed in any other person's name.  However, there are cheque cashing places that can do it still (I think).

[JSB]

Uzoma is correct but most will charge heavily for the service because of the risks involved

[Didwot]

I have now douhble checked the matter, and have to concede that the Bills of Exchange Act 1882 was amended by the Cheques Act 1992 which inserted an ew Section 81(A) recognising for the first time the words a/c payee only, and rendering such a cheque not transferrable. Apologies.

[blacka]

so how come these cash convetors do it ?is it a contract btwn the 2 ,bank and the agent

[CASATRONIC]

Hope I not butting in but I have a problem. I sent a crossed cheque A/c payee last year. However the person did not receive the cheque but it had been banked and credited to another a/c at NatWest. I retrieved the cheque voucher and it gave the sort code and a/c details. I have been writing both to Barclays (my bank) and NatWest (recipents bank) but none will take responsibility for the error.

Both banks say it is the others responsibility to investigate. Does anyone know whether it is the payee or the recipients bank who should take responsibility?