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#1843654 - 08/19/13 04:56 PM Cashing Checks
CrashDavis Offline
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Joined: Jun 2005
Posts: 283
I am guessing this is the correct forum to ask this question. I think I know the answer but need confirmation.

When customers come to bank and presents a check on their account with another bank and the check is payable to cash, should the teller get the customer endorsement? I say they should. We have a situation that a customer has come to the bank and has cashed several checks over several days payable to cash. Checks are around $9,000. In one situation the teller tried to get his endorsement and he refused saying the check is payable to cash so he doesn't have to endorese the check. I told the teller if he refuses again not to cash the check.

I believe he is trying to hide something.

Appreciate your opinion.

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#1843662 - 08/19/13 05:10 PM Re: Cashing Checks CrashDavis
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
A check payable to "cash" is a bearer instrument, according to the UCC the item can be negotiated simply by handing it to another person without endorsement. However, the UCC also indicates that anyone who is willing to accept the item may require the endorsement of the person transferring it to them.

You had no obligation to cash a check not drawn on your bank under any circumstance. If he refuses to sign it and thus provide you with the appropriate warranties and an obligation to pick up the check if it bounces, it would be simply be ridiculous for your bank to cash it.

You need to make sure your teller is more concerned about your opinion than the customer's...
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#1843683 - 08/19/13 05:44 PM Re: Cashing Checks CrashDavis
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,868
Cape Cod
Somewhere along the line, some banks have given their depositors the idea that their deposit account gives them the right to cash checks drawn on other banks. It may be because banks are often happy to accommodate such customers, but the key word here is "accommodate." It's not a matter of right, contractual or otherwise, and it doesn't even include the "right" to cash a government check, such as a tax refund check.

I suspect those same banks have mistakenly given their tellers the impression that check-cashing is a right for their depositors. They should be disabused of that idea.
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#1843697 - 08/19/13 06:31 PM Re: Cashing Checks CrashDavis
CrashDavis Offline
Gold Star
Joined: Jun 2005
Posts: 283
Thanks, I thought that was correct but wanted confirmation.

Thanks again

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