Liability For Deposits From Check Cashers

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Question:

I just finished reading your article on depositing checks payable to corporation into personal accounts. Can you give me an opinion for the bank's Check Cashing customers depositing checks payable to other businesses? These are checks that the check cashing business cashed for someone unknown to the bank.

Answer:

As soon as the check cashing company puts their endorsement on the back of that check when they deposit it with you, they assume all liability for all prior endorsements. It is their problem, not yours - thank heaven!

First published on BankersOnline.com 10/1/01