Cheque Problem!! Advice Please!

Flumpette

coldhandoff wrote: »

You didn't actually tell them that did you?

No, I'd noticed that she'd signed it but wondered if he had organised something with his bank for her to look after his interests in his absence ... but of course, even if he has, "A Smith" signing a cheque in the name of "B Jones" still looks a bit suspicious to the chap on the counter!

Willman_Rodders

When you pay a cheque in over the counter the cheque is paid into the 'collecting' bank. The cheque then goes through the clearing system and is presented for payment at the 'paying' bank.

It is possible that the 'collecting' bank is the same as the 'paying' bank; this would occur when the cheque is paid in over-the-counter of the 'paying' bank. The paying banks address is shown on the cheque.

The responsibilities of the 'collecting' bank are very different from those of the 'paying' bank. The paying banks responsibilities include paying the cheque on presentation for payment. The collecting bank's responsibilities do not include paying the cheque.

A cashier at a 'collecting' bank can point out to the person paying the cheque in any discrepancy that they might spot. But they must not refuse to accept the cheque [unless they are also the 'paying' bank -- see above]. Only the paying bank can decline to pay it on presentation.

[As an aside: For all that the 'collecting' bank knows the drawer of the cheque may have made special arrangements with the 'paying' bank for it to be paid on presentation despite having errors or omissions contained on it.]

Indeed where a collecting bank refuses to accept the cheque they are at risk of being sued for damages by the drawer ( i.e. the person who made out the cheque in the first place) -- because, in effect, they have damaged the reputation of the drawer of the cheque.

So my advice [assuming that the cheque is not paid in over the counters of the 'paying' bank], and as a former Administration manager with a High Street bank, is to go back to the bank and pay the cheque in.

laurel7172

When I lived abroad, I made my father a signatory on my accounts. Not a joint account holder-just a signatory. Pay it in through an atm and let the ex's bank sort it out.

alanq

Flumpette wrote: »

They knew it was signed by another person as his sister has signed the cheque with her name, but it's got my ex's name on the cheque!

If ex is abroad it is quite likely that he gave his sister power of attorney. If that is the case, it is my understanding that her signature should be acceptable on her brother's cheques. When I gained power of attorney for my mother I was told by my NatWest manager that there was no need to send out a new cheque book as I could sign her existing cheques on her behalf.

coldhandoff

alanq wrote: »

If ex is abroad it is quite likely that he gave his sister power of attorney. If that is the case, it is my understanding that her signature should be acceptable on her brother's cheques. When I gained power of attorney for my mother I was told by my NatWest manager that there was no need to send out a new cheque book as I could sign her existing cheques on her behalf.

I would have asked for a new one anyway if that is the case. I'm not sure how the cheque clearing process works when it comes to checking signatories etc so I don't know if it would be checked somewhere to make sure it was signed by a valid person.

If that actually is the case, it could just be that the cashier rejected it based on the signature and there being no indication on the cheque that there were other parties who could sign.

ChiefGrasscutter

As other have said the authorised signatories can be quite different from the account name.
Clubs and societies account and businesses are one example where the name will bear no resemblence to the names of those who are allowed to sign a cheque.

Another example is say a cheque book for Mr and Mrs Jones Household Account where Mrs Jones may sign using her maiden surname.

I've had a cashier reject and refuse to accept a cheque made out to me as the middle initial in my name was illegible and could have been one of two letters (I agree it could). The sum involved was probably around £200 from what can recall.
Of course had the writer left out the middle initial then it would have been acceptable - which is what they did when they re-wrote it for me.

Flumpette

Thanks very much once again! The collecting and paying banks are two different banks so I'll try and pay it in again next week. Maybe I'll be luck enough to encounter a cashier who is slightly less observant than the chap I saw yesterday!