Third Party Cheque Cashing

Corsia

I recently did a bit of work for a company and was paid £1000 by cheque. I needed the money badly, so I used one of those cheque-cashing services. I was given £975 and had to sign a form and give them ID blah blah.

Got a phonecall today saying that the cheque had bounced! Ooooops! And when am I going to pay them their £1000 back!?

I am trying to get the money ASAP but the question is. Who has the liability for the cheque? Will the cheque cashing people chase the company who did not have the funds (the people who paid me) - or me because I gave them the cheque? The company confirmed with the cheque casher that I was entitled to the money, so surely they should be chased for the money?

BTW, no credit agreement was signed - just a form giving them power of attorney to cash the cheque.

Any advice?

SarahNeedle1872

Don't know the answer, bumping u back up tho

Sarah x

Corsia

SarahNeedle1872 wrote: »

Don't know the answer, bumping u back up tho

Sarah x

Thanks! These forums are so big your thread gets lost really quickly!

SarahNeedle1872

They do.... theres also not as many people around at this time of night, so if u can, check again in the morning (bump urself back up if u need to!)
Hope u get the answer soon! It's definately a strange one, I'm intrigued to know the answer!

Sarah x

OliveOyl_2

bumpety bump :rolleyes:

sammy115

I would give CCS a call, they have more knowledge with regard to the cheque cashing services. In all honesty - I think this is complicated. You presumably had a contract (verbal or written) to do work for the company so they owe you the money. They paid you but the cheque bounced. Therefore legally they still owe you.

However, I would say you 'sold' your debt to the cheque cashing service, therefore you owe them the money - as they haven't got it.

I would chase the company who gave you the original cheque and ask them for the money and if they don't pay you within seven days file a claim on Money claim online for your money back. I would not delay on this at all.

I would then pay the cheque cashing service £975 - I wouldn't pay them £1,000.

Good luck and when you have a proper answer perhaps you could let us know.

Adrasteia01

Honestly, I would try and get a cheque for the money (or payment by bacs) as soon as possible, then give the thousand to the cheque cashing service.

You agreed to pay them 25 pounds for the service, and you got your money, so you owe them the full thousand. Simple as that. I'd suggest telling them you will get the money to them as soon as possible, as soon as you get another cheque yourself. Then you can offer them the choice to either cash that cheque (NOT subject to a 25 euro fee again), or you can cash it yourself and pay them the money.

Are there bank charges for the cheque bouncing? These should really be the responsibility of the company that is paying you.

Just my opinion, no background in UK law, but that's the logical way I would see it.

Tamara