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#499449 - 02/15/06 07:34 PM Cashing On-Us checks for Non-Customers
Abbey B Offline
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Joined: Feb 2006
Posts: 1
If our bank does not cash on-us checks for non-customers, are we in violation of any laws, such as UCC laws? Would there be any laws that would supercede the UCC laws regarding cashing on-us checks for non-customers?

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#499450 - 02/15/06 09:11 PM Re: Cashing On-Us checks for Non-Customers
Don_Narup Offline

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Joined: Jul 2001
Posts: 3,708
Las Vegas Nevada
A person presenting a check for payment at your counter is making Demand for Payment. You have a Demand Deposit Account the check is drawn on. You cannot show preference to creditors and by refusing to cash a check just because the presenter doesn't bank with you, may be cause for "wrongful dishonor".

Now the presenter needs to meet all the ID requirements and regular check cashing requirements, and if not you can refuse payment, just not because they don't bank with you.

Your customer is also paying you to handle their banking transactions. It's not the non customer you are providing service to. ITS YOUR CUSTOMER who pays to the bank to handle their banking transactions.
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#499451 - 02/16/06 01:36 AM Re: Cashing On-Us checks for Non-Customers
Elwood P. Dowd Offline
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Joined: Aug 2001
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Some banks in major metropolitan areas; e.g. New York, Houston & Chicago that I know of, do not cash on-us checks for non customers. A bank is allowed to require acceptable identification from the payee and some banks in those locales have concluded that there isn't anything that constitutes acceptable identification from a non customer. They appear to have been able to defend that conclusion, but I do not think it would be defensible in mid-America.

The relevant complaints would come from your customers; i.e. the people who wrote the checks and that is a distinct possibility.

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#499452 - 02/16/06 03:14 PM Re: Cashing On-Us checks for Non-Customers
SavannahOne Offline
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Joined: Sep 2005
Posts: 1,163
Georgia
You should also consult state law on this.

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#499453 - 02/16/06 08:50 PM Re: Cashing On-Us checks for Non-Customers
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
I thought it was wrongful dishonor only if the demand was made by your customer.
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#499454 - 02/16/06 08:56 PM Re: Cashing On-Us checks for Non-Customers
Banking Bard Offline
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Joined: Jul 2005
Posts: 191
Kentucky
I thought that the check itself was your customer's demand. If I write a check to a merchant, that check is my demand to the bank to pay that merchant the amount listed on the check from the account also listed on said check.
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