Is a Bank Liable

50Bluebell
50Bluebell Posts: 3 Newbie
First Anniversary
in Budgeting & bank accounts
We have a very strange issue with Nat West. My husband was given a cheque in payment for work.. He banked the cheque and it was bounced. I noticed the name on the cheque was different by one letter than the person he had done work for... for example the name was A. Porter and the cheque in the name A Portet..We then discovered that the person we had worked for had a whole list of convictions for fraud. We have reported to the police. However I spoke to the bank who issued the account and they tell me its just a typo and anyone can make a mistake so they have no liability. The police tell me the account was deliberately opened in with the false name. Has anyone any ideas or suggestions re how we should proceed to recover our money...Thank you.
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Comments

  • Don80
    Don80 Posts: 300 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Hi, they do not have liability in terms of paying you. They do have liability in terms of account names - they MUST carry out ID checks when they open accounts, so the name on the cheque needs to match the ID. But that bit isn't really your problem.

    It may simply have bounced if there were not enough funds in the account to pay the cheque, this isn't fraud though, just bad money management. Contact your bank, the A Porter to request payment (preferably using a different method!). If the person refuses then you have a problem and may need to get legal advice.
  • robatwork
    robatwork Posts: 7,089 Forumite
    Name Dropper Photogenic First Post First Anniversary
    I'm no lawyer but... it sounds like pretty straightforward contract law.

    If you cut through the story about fraud and names, what you have is an offer of work to your HB, and acceptance of work and consideration in form of the cheque proving the work was done and the money was owed. That sounds like plenty to win a case in court easily.

    I would:
    Give the person another chance to pay - keep your communications completely emotion free and to the point - give him a timescale of say 7 days
    After that time send him a letter before action (google it for a template) - you have his name and address from the sounds of it
    Claim through court if he doesn't respond to the LBA in the time frame

    How much are you talking about?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    50Bluebell wrote: »
    Has anyone any ideas or suggestions re how we should proceed to recover our money...Thank you.

    You've been stitched up I suspect. Be prepared to write the money as a bad debt.
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    If the cheque has been sent back (to your husband) then it's either been stopped or it's 'refer to drawer' meaning essentially their bank don't think the account will have funds anytime soon.

    I would go back - don't accept another cheque - cash ideally or Faster Payment but sounds like your husband might have a problem getting funds from the client/customer.
  • 50Bluebell
    50Bluebell Posts: 3 Newbie
    First Anniversary
    I am pretty convinced we have been stitched up too. This is a fraudster with 60 offences between him and his wife...
    I am well aware of small claims court but in this case I very much doubt we would get anywhere... Certainly would get judgement but no assets so payment would be a miracle.
    I was more concerned that Nat west opened the account in an incorrect spelling of their name The police advise it was not a mere cheque book spelling issue the account was opened in that misspelt name the bank failed to check the account details and gave a fraudster a vehicle to commit further fraud with. I would assert if the bank had done their account opening checks more thoroughly they would have not opened the account and provided the facilities for the fraudster to use. It was that angle I was hoping to get opinion on
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    50Bluebell wrote: »
    I am pretty convinced we have been stitched up too. This is a fraudster with 60 offences between him and his wife...
    I am well aware of small claims court but in this case I very much doubt we would get anywhere... Certainly would get judgement but no assets so payment would be a miracle.
    I was more concerned that Nat west opened the account in an incorrect spelling of their name The police advise it was not a mere cheque book spelling issue the account was opened in that misspelt name the bank failed to check the account details and gave a fraudster a vehicle to commit further fraud with. I would assert if the bank had done their account opening checks more thoroughly they would have not opened the account and provided the facilities for the fraudster to use. It was that angle I was hoping to get opinion on

    I think you have no chance.

    But other than time, complaint to the bank and then escalating to the FOS costs you nothing.
  • firefox1956
    firefox1956 Posts: 1,548 Forumite
    As Post #3............
    How much was the cheque for...........??
  • antrobus
    antrobus Posts: 17,386 Forumite
    PeacefulWaters wrote: »
    I think you have no chance.

    But other than time, complaint to the bank and then escalating to the FOS costs you nothing.

    That would be an option.

    However, I would have thought that since it is likely that this A. Porter had no intention of ever paying the OP's husband for the work carried out, (that would be the fraud), the fact that a bank opened an account for this fraudster in a 'false name' is neither here nor there.

    The OP's loss didn't arise as a result of being given a duff cheque, it arose as a result of agreeing to perform the work.
  • mt99
    mt99 Posts: 472 Forumite
    I think the 'Portet' account name is irrelevant to your case. He probably did this as he knew he wouldn't get an account in his real name (credit checks, fraud checks etc). I am amazed the bank did open the account though - wonder what ID he produced?

    Anyway, as far as you are concerned you have been paid with a bounced cheque - as others have said you can try and get payment other ways but if not then the only route is the county court, followed by enforcement but this is only feasible if he has any assets (house, car etc)
  • Don80
    Don80 Posts: 300 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    50Bluebell wrote: »
    I was more concerned that Nat west opened the account in an incorrect spelling of their name The police advise it was not a mere cheque book spelling issue the account was opened in that misspelt name the bank failed to check the account details and gave a fraudster a vehicle to commit further fraud with. I would assert if the bank had done their account opening checks more thoroughly they would have not opened the account and provided the facilities for the fraudster to use. It was that angle I was hoping to get opinion on

    Yeah, NatWest should have spotted this. I understand typos happen, but they should have the ID to check against. The "good news" is that if he provided fraudulent documents and they confirm that, the person will end up with a CIFAS record, which may well result in banks closing his accounts, and will make it very difficult for him to open a new account anywhere.
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