Paying a cheque into account

Cardinal-Red

Hi - we are about to receive a cheque for a personal loan, which is made out to my partner and I. However we don't want it to go into our joint account, but instead into my partner's account held with a different bank.

I've checked T&Cs of my bank, and the loan company, and can't find anything. Does anybody know whether it's allowed to pay a cheque made out to two people into an account with only one of them named?

Thanks!

iceicebaby

Im not sure. However you could pay the monry into your joint account and then transfer it to your partner's account

Fait_accompli

No you can't. If a cheque is made out to two people it must go into an account that belongs to you both i.e. a joint account. If the cashier's on the ball, they'd say no to accepting a cheque with two names on into a sole account as half the funds legally belong to someone else.

I think the reason this is, is to prevent theft. If Mr and Mrs Smith have been divorced for a year, but a cheque arrives at Mr Smith's house (where Mrs Smith use to reside) with joint names and he pops it into his account, he's technically defrauded Mrs Smith (and the bank would be liable to compensating Mrs Smith).

I'd suggest as above - pop it into a joint account and then transfer staright into your partner's sole account. :xmassmile

jillie1974

we got cheques made payable to both of us when we got married and we were able to pay them in to my account as my name was on the cheque..
i would check with bank that you want to deposit the cheque with

AndyR_3

A bank shouldn't accept the cheque, and given that it's a loan and therefore probably at least a few thousand pounds, I think they will check the details.

Ask the loan company for a sole cheque, or as has been suggested, pay into the joint account and then transfer. Or could they send the payment by BACS?

Cardinal-Red

Thanks guys - as I suspected. But what happens if, for example, there were no joint account...?

(This is now academic as the loan company have said they'll make the cheque out to her alone so problem solved!)

Toomuchdebt

If there is no joint account then one must be opened to accept the cheque or the cheque must be returned to be reissued in a single name.(I work in a bank).The only way a cheque with 2 names on it could be paid into a single account would be if the cheque was not crossed "account payee" which although rare now does happen occasionally.