3rd party cheque cashing

poptart1_2

I know that for some time it has been impossible to pay a cheque into your bank that is made payable to someone else, but can anyone tell me when this occured and what the law on this was called please.
Its to slove an argument really , so any information would be helpful
cheers

jonesMUFCforever

Google for the last Cheques Act - not sure of the date sorry.

glider3560

The Cheques Act 1992 inserted section 81A into the Bill of Exchanges Act 1882.

81A Non-transferable cheques

(1) Where a cheque is crossed and bears across its face the words “account payee” or “a/c payee”, either with or without the word “only”, the cheque shall not be transferable, but shall only be valid as between the parties thereto.

(2) A banker is not to be treated for the purposes of section 80 above as having been negligent by reason only of his failure to concern himself with any purported indorsement of a cheque which under subsection (1) above or otherwise is not transferable.

EarthBoy

It's still possible to transfer cheques if they aren't crossed, but uncrossed cheques are as rare as hens teeth these days. Most banks flatly refuse to issue them.

However, some banks will allow you to "uncross" the cheques by crossing out the words "a/c payee" and signing alongside. First Direct explain this in their conditions, paragraph 21.1.17:

http://www1.firstdirect.com/1/PA_1_1_S5/content/firstdirect/pws/assets/pdf/nov_terms.pdf;jsessionid=0000ccdCZIL6Cuosw9KShxk2Ea7:11jk52tf3

21.1.7 Our cheques have the words "A/C PAYEE" printed across them which means they can only be paid into the bank account of the person/organisation named on the cheque. If you want to write a cheque that can be paid into the bank account of someone other than the person you name on the cheque you must put a line through the words "A/C PAYEE" on the cheque and sign your name (not your initials) alongside the alteration.