Bank Check Request from a Non-customer
Question: We have a local check casher in our town that is not our customer. Every now and then he brings a check in to us and wants a bank check for it. The check he brings in is drawn on our customer's account, and there are good funds in the account. Are we obligated to give the check casher a bank check? And can we charge him for it?
Answer: I have to assume you're talking about a check drawn on your customer's account that is payable to the check casher - not a second endorsed check. You really can't cash the check, as it is payable to a business. The only way the check casher can be sure of immediately getting the funds from the check is by means of a cashier's check payable the same way the original check is payable. If you can identify the check casher, then yes you can give him a bank check. And certainly, you can charge him for it. It should be on your fee schedule.
Copyright © 2005 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 15, No. 6, 7/05
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