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Cheque Fraud

Hi

I wonder if anyone can help me. I wrote a business cheque to an individual and gave it to my partner. He subsequently lost this cheque!

I found out on Monday that someone cashed it on Monday in a bank in Birmingham. I rang the bank to try to stop the cheque and reported a fraud as we paid the named individual on the cheque by another means.

My bank are saying that the status of the cheque was PAY meaning that it was paid into another Lloyds TSB account. They have requested the cheque and found that it wasn't 'washed', i.e. the person who has cashed it has pretended to be the named person on the business cheque.

Does anyone know what my rights are here? It was a large amount of money £1500. I can't stand the thought of losing it.

Mary.

Comments

  • DCFC79
    DCFC79 Posts: 40,642 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You didnt cancel the cheque did you ?
  • s_b
    s_b Posts: 4,464 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    so someone has opened an account in the name on the cheque?
  • Forwandert
    Forwandert Posts: 1,211 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    mazzoh wrote: »
    Hi

    I wonder if anyone can help me. I wrote a business cheque to an individual and gave it to my partner. He subsequently lost this cheque!

    I found out on Monday that someone cashed it on Monday in a bank in Birmingham. I rang the bank to try to stop the cheque and reported a fraud as we paid the named individual on the cheque by another means.

    My bank are saying that the status of the cheque was PAY meaning that it was paid into another Lloyds TSB account. They have requested the cheque and found that it wasn't 'washed', i.e. the person who has cashed it has pretended to be the named person on the business cheque.

    Does anyone know what my rights are here? It was a large amount of money £1500. I can't stand the thought of losing it.

    Mary.

    Contact the police and report the cheque as stolen.
  • ERICS_MUM
    ERICS_MUM Posts: 3,579 Forumite
    Part of the Furniture 1,000 Posts
    Was the name of the account it was paid into the same as the name on the cheque ? If not then you should take it up with the bank/branch where the account is held. They are called the "collecting bank" and are legally responsible for checking that the cheque is paid into the right account (i.e. with the same name).

    Years ago cheques could be endorsed to another person for their own account but this is no longer possible (account payee only).
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