cheque has been paid to the other than the payee's name

dani2015

Can anyone with banking knowledge share their views on this following matter please.


I have written a cheque recently for a PCN and made it payable to "Parking Services" and sent it in the prepaid envelope to London Borough of Hammersmith and Fulham Parking Services.

After I sent it, I realised that in the ticket notes they ask that the payment should be made to LBHF Parking Services. However, I wrote it to "Parking Services" which is a generic name (as it doesn't identify the borough concenrned).

I have expected the bank to refuse to make the payment to them because it is impossible that they are the owner of a bank account with the generic name (Parking Services). However, I was surprised that it has been withdrawn from my account.


I called my bank two days ago and asked for a refund due to the error in processing the cheque because there is a mismatch in the name written on the cheque and their account name. My bank told me they will investigate to know their actual account name.


Today on the phone, they seemed not concerned about the issue. They said that London borough of Hammersmith and Fulham have a department called parking services. So they believe no mistake has been done in the processing of the cheque. Even though I was telling them that the name of their account should be exactly the same as in the cheque. But they didn't care. And they told me that I will receive a letter soon in the post with details of their investigation which i believe says that they can't do anything about it.


Having looked at the payments council page - section about Cheques. It says :

Cheques
Can a cheque be paid into the account of someone other then the named payee?

Most cheques are crossed a/c payee. The Cheques Act 1992. Section 1 amended Section 81 of the Bills of Exchange Act 1882 (introducing a new Section 81A) gives statutory power to the "a/c payee" crossing when it is used.

The law regarding "a/c payee" legislation is very clear. A cheque which bears the "a/c payee" crossing can only be paid into an account in the name of the beneficiary exactly as it appears on the cheque. Similarly, a cheque payable to two beneficiaries can only be paid into an account in the name of the two beneficiaries exactly as it appears on the cheque.



My bank doesn't seem to be helping on this matter which I believe they should be held responsible for it because I am not satisfied with how the payment has been processed.

Is there anything I can do to have a refund?

sinizterguy

You want a refund - that is the main concern. Rather than how your bank treat the cheque.

I have had cheques with all sorts of misspellings and even one with my middle name (which is not on my bank account) paid into my account with no issues whatsoever.

ceredigion

And the problem is ?

dani2015

the problem is the person who processed the cheque at the bank incorrectly should not be held responsible for this mistake and issue a refund?

101problems

forgive me if im missing the point. you wrote a cheque the details where not correct however the recipient has recieved the funds?
whats the problem a bit of common sense was applied it was clear who the cheque was intended for as it would have been the organisation you sent it to that cashed it?
what am i missing?

101problems

i think they should be thanked for making sure your error did not result in a further fee or even a court appearance!!

dani2015

so what I conclude is that the law regarding "a/c payee" legislation is there but not being applied.

suicidebob

So, you wrote a bad cheque, intentionally?

dani2015

my statement was clear in the post about how the cheque was written.


however, the main concern is about how the bank ignores the current legislation

BMN

dani2015 wrote: »

however, the main concern is about how the bank ignores the current legislation

It doesn't.

The legislation you are referring to states:

(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.”.

dani2015

BMN, you are referring to crossed cheques.

My cheque was not crossed. and the law about them is different from non crossed cheques (open cheques)