Paying cheque payable to someone else into my bank account

Ballard

bigadaj wrote: »

Years ago, at least in rural areas, uncrossed cheques would circulate for months or years, with a whole list of signatures.

Something to do with the taxman apparently,

It may or may not have been taxman related initially but the more pressing issue is with AML as it would be more difficult to trace funds once they'd hit a third person's account.

I don't think that any UK bank issues uncrossed chequebooks nowadays. It may even be illegal to do so.

pvt

I thought a simple crossed cheque had to be paid into another bank account, whereas a crossed cheque endorsed "A/C payee only" can only be paid into an account in the name of the payee.

An uncrossed cheque is, and always has been, very uncommon and is pretty much good for cash if the payee takes it to the payer's bank and demands payment.

I can remember about 40 years ago you could request to have either crossed or uncrossed cheque books, but I doubt a bank would be willing to issue uncrossed cheques any more.

pvt

bigadaj wrote: »

Years ago, at least in rural areas, uncrossed cheques would circulate for months or years, with a whole list of signatures.

Soemthing to do with the taxman apparently,

Probably a way of avoiding stamp duty. Until 1971, every cheque issued was subject to stamp duty of a couple of pennies. This was essentially paid by the payer (drawer) of the cheque - in early days by sticking a stamp onto the cheque, but in later days the bank issued blank cheques 'duty paid' (which is why cheque books cost about 4 bob a time).

Endorsing an existing unpaid cheque with another payee's name was a way of paying the money on without incurring another stamp duty payment.

I'm not sure about "years" though. I thought cheques had to be eventually cashed (or paid in) within 6 months.